Bernstein Research Predicts a Bullish Rally for Bitcoin (BTC) by the End of 2025

The price of Bitcoin (BTC) showed a slight uptick in the daily chart, indicating a potential recovery. Amid this development and ongoing market volatility

Bitcoin (BTC) price showed a slight uptick in the daily chart, hinting at a possible recovery. As this unfolds and the market continues to exhibit volatility, a recent report from Bernstein Research attempts to predict a bullish rally for BTC.

Bernstein's 2025 Bitcoin Bullish Prediction

In the report, Bernstein claims that Bitcoin could reach $200,000 by the end of 2025. Bernstein cited the increasing institutional adoption and strong network fundamentals as key factors behind this bold Bitcoin price prediction.

Bernstein noted in the 160-page “Black Book” report that institutional investors are rapidly reshaping the Bitcoin network as they continue to increase adoption. Notably, ten global asset managers now control nearly $60 billion in regulated Exchange-Traded Funds (ETFs), a vast increase from the $12 billion recorded in September 2022. As a result, Bernstein anticipates that Wall Street will become the top Bitcoin holder, surpassing Satoshi, by the end of 2024.

This year's ETF landscape also demonstrates strong institutional enthusiasm. As covered by CNF, six of the top ten most successful ETFs launched in 2024 were Bitcoin-related products. While recent data showed a temporary pullback, with $79.1 million in outflows on October 22, the total assets under management have crossed $65 billion.

Interestingly, leading asset manager BlackRock is making a huge contribution to the rising institutional interest in Bitcoin. As reported by CNF, BlackRock recently increased its Bitcoin stake, purchasing $1 billion via its iShares Bitcoin Trust. Altogether, the BlackRock fund now holds about $24 billion in BTC, which comprises roughly 1.76% of the coin’s total supply.

BlackRock CEO Larry Fink now sees Bitcoin as a separate asset class, like gold. In an earlier CNF post, Fink argued that the upcoming US Presidential elections have no impact on BTC's price.

Meanwhile, JPMorgan noted that investors are making a “debasement trade” into gold and BTC as they brace for possible “catastrophic scenarios” amid escalating geopolitical tensions.

Veteran hedge funder Paul Tudor Jones has also endorsed this view, indicating that he has long positions in Bitcoin and other commodities.

Bitcoin's Strong Network Fundamentals

Bitcoin's current price movement shows both strength and caution. At the time of writing, BTC is trading at $66,937, up 0.73% in the past 24 hours.

Interestingly, BTC has formed a bearish engulfing pattern on the daily chart. Historically, this formation has a 60-70% success rate in predicting short-term reversals. Also, the futures market has seen Open Interest (OI) approach $40 billion, as prices test $69,000.

Technical indicators show a likely retest of the $60,000 support level, with key resistance around $67,500 and $68,000. However, several elements indicate the network's fundamental strength.

This includes a rising hashrate which reached record highs and increased active addresses since mid-September.

Network fees have also increased, indicating substantial transaction activity. Furthermore, options traders show strong bullish sentiment, with Open Interest concentrating around $80,000 strike prices for November expiry.

In conclusion, the combination of institutional adoption and strengthening network fundamentals is expected to set Bitcoin up for a historic bullish rally soon.

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