As we move into what Bernstein analysts are dubbing the "Infinity Age" of the crypto market, there’s a wave of optimism in the air. Bitcoin (BTC), in particular, is regaining its stride, nearing the $102,000 mark as the week kicks off.
Adding to this buzz is the anticipation surrounding the upcoming Donald Trump administration in the U.S., which has stirred excitement within the crypto community and sparked bold predictions for the coming year.
Bernstein Eyes Bitcoin Reaching $200,000 by 2025
Bernstein analysts are forecasting an impressive rise for Bitcoin, predicting it will hit $200,000 by the end of 2025. This outlook is largely based on Bitcoin’s increasing adoption, particularly with the expected creation of a Strategic Bitcoin Reserve in the U.S., a move recently confirmed by President-elect Donald Trump.
The firm also projects a continued upward trend in corporate treasury adoption of Bitcoin, with inflows potentially surpassing $50 billion this year—a big jump from the $24 billion recorded in 2024.
Leading this charge is MicroStrategy, a Bitcoin-focused company that recently became the first of its kind to make its way onto the Nasdaq 100 Index. Following closely behind are Bitcoin miners looking to ramp up their investments.
Furthermore, Bernstein anticipates a doubling of inflows into Bitcoin exchange-traded funds (ETFs), forecasting they will exceed $70 billion in 2025. This predicted surge is likely to be driven by increased institutional interest, with hedge funds, banks, and wealth advisors making significant moves in the market. Analysts believe the launch of a Solana ETF this year is set to further bolster Bitcoin investments.
Interestingly, Bernstein notes that their price target of $200,000 doesn’t factor in possible governmental demand, suggesting the actual price could soar even higher as Bitcoin transitions from being a trader’s asset to one held by long-term investors, such as corporate treasuries and ETF participants.
Pro-Crypto Legislation Anticipated from Trump Administration
As for Bitcoin mining, changes are on the horizon. Bernstein predicts that miners will increasingly incorporate artificial intelligence (AI) into their processes to boost value.
Looking back at last year, we saw a distinct performance gap: AI-diversified miners enjoyed substantial gains, while those focusing solely on Bitcoin confronted losses. This trend is expected to continue, prompting miners to adopt AI technologies that enhance sustainability and draw in institutional investors.
The interplay between AI and crypto is anticipated to grow stronger in 2025, sparking the creation of novel solutions like decentralized AI-centric blockchains and AI-integrated crypto wallets. Bernstein’s analysts view this synergy as a crucial opportunity to drive innovation within the sector.
As Donald Trump’s administration takes the helm, Bernstein analysts foresee pro-crypto legislation that will clarify the regulatory framework surrounding stablecoins and the broader crypto market structure.
In particular, they see a stablecoin bill as a top priority, which could fortify the US dollar’s position and amplify the digital economy. This clearer legislation is expected to fuel the stablecoin market’s growth beyond $500 billion by 2025, more than doubling from the previous year’s figures.
Additionally, the analysts predict a more accommodating stance from the Securities and Exchange Commission (SEC) under the new administration, possibly leading to the resolution or withdrawal of ongoing cases against crypto companies.
Describing the "Infinity Age" of crypto, Bernstein envisages a future characterized by constant innovation and widespread acceptance. In this evolving era, crypto is expected to integrate seamlessly into the financial system, shedding its erstwhile controversial aura to gain recognition and acceptance from corporations, banks, and institutions alike.
Featured image from DALL-E, chart from TradingView.com.
