Bernstein analysts Gautam Chhugani and Mahika Sapra recently changed their price targets for Bitcoin in their latest market report, which also initiated coverage on Micro-strategy. These analysts also presented factors that they believe could contribute to the exponential raise in BTC’s price.

Bitcoin will reach $200,000 and then $1 million

Chhugani and Sapra predicted in the report that BTC would rise to a cycle high of $200,000 by 2025 and the flagship cryptocurrency would hit $1 million by 2033. Bernstein had previously predicted that Bitcoin will reach $150,000 by 2025. However, these analysts have now changed their targets and referred to institutional demand for BTC as one of the reasons they believe the flagship cryptocurrency can reach such heights.

The research company predicts that Spot Bitcoin ETF will continue to see impressive demand, and managed Bitcoin could reach $190 billion by 2025, a significant raise from the $60 billion in BTC that fund issuers already manage.

In other words, this is what analysts expect BTC price succumb to the dynamics of supply and demand, given that the amount of Bitcoin in circulation will certainly decline dramatically as these Spot Bitcoin ETFs continue to accumulate a significant amount of crypto tokens for their respective ETFs. What’s more, two Bitcoin halvings will occur before 2033, which will result in further reductions supplies for miners and thus supporting their basic case BTC reached $1 million.

MicroStrategy will benefit from the development of BTC

Berstein analysts also started reporting on Micro-strategy with an exceeding rating. They predict that the software company’s shares could surge to $2,890 thanks to BTC exposure. The raise to $2,890 represents an approximately 95% raise in the value of MicroStrategy stock, i.e currently valued for about $1,500.

The research firm noted that MicroStrategy is committed to “building the world’s largest Bitcoin company.” So far, it’s paid off, with Chhugani and Sapra stating that the software company has transformed from a “small software company to the largest BTC holding company” since August 2020 (when it started accumulating BTC).

MicroStrategy already has it 1.1% of the total Bitcoin supplywith a net worth of approximately $14.5 billion. The company’s BTC holdings are expected to raise soon as they have recently announced plans to offer $500 million in convertible Senior Notes. A portion of the proceeds from the proposed sale will be used to purchase additional BTC.

Berstein emphasized how he co-founded the company Michael Saylor has become synonymous with the Bitcoin brand and that the company’s position as a leading Bitcoin company has helped attract “large-scale capital (both debt and equity) into dynamic Bitcoin acquisition strategy” In dollar terms, Bernstein noted that MicroStrategy’s Bitcoin net asset value (NAV) per share “has increased almost fourfold, exceeding the 2.4x increase in the Bitcoin spot price.”

“We believe MSTR’s long-term convertible debt strategy gives it enough time to gain on the upside of Bitcoin, with limited risk of Bitcoin liquidation on the balance sheet.” Added by Chhugani and Sapra.

Featured image created with Dall.E, chart from Tradingview.com