Bernstein, a major asset manager with $725 billion in assets, has predicted that the price of Bitcoin could reach $1 million by 2033, with a stopover at $200,000 as early as next year. This bullish forecast comes after Bernstein initiated coverage on software developer MicroStrategy, known as the largest corporate holder of Bitcoin, with an “outperform” rating. Currently, MicroStrategy holds approximately 1.1% of the global Bitcoin supply, valued at around $14.5 billion. Over the past four years, the company has transformed from an obscure software firm to a leader in the cryptocurrency space, according to a research report by Bernstein.
Bernstein’s coverage of MicroStrategy is not so much an investment in the company’s fundamentals as it is a “leveraged” bet on Bitcoin. The report states that MicroStrategy positions itself as an active leveraged Bitcoin strategy compared to passive spot exchange-traded funds (ETFs). Bernstein’s optimistic outlook on Bitcoin’s price is based on the unprecedented demand from spot ETFs and the limited supply of the cryptocurrency, which could drive Bitcoin to $500,000 by 2029, an increase from their previous estimate of $150,000 for 2025. The report also notes that MicroStrategy’s long-term convertible debt strategy is a way to capitalize on potential Bitcoin gains while minimizing the risk of liquidation of its cryptocurrency holdings.
MicroStrategy has proposed a $500 million debt sale of convertible notes to further increase its Bitcoin holdings. The company’s position as the top publicly traded Bitcoin holder and an indirect, leveraged bet on Bitcoin’s price gives it an edge over spot ETFs, according to analysts. However, the extent of this advantage is yet to be seen. Analysts believe that even with spot Bitcoin ETPs now available as potential substitutes, a significant premium on Bitcoin will continue to be justified, ensuring that MicroStrategy shares will remain appealing to investors looking to gain exposure to Bitcoin.
The optimistic long-term outlook for Bitcoin is supported by the increasing acceptance of the cryptocurrency by institutions. Large asset managers such as BlackRock and Fidelity now offer easy access to Bitcoin for individual investors, partly through spot Bitcoin ETFs. A Bitcoin spot ETF is an investment fund that tracks the price of Bitcoin directly, allowing investors to buy shares representing ownership of Bitcoin itself. Bernstein believes that these mainstream inflows are driving the recent price gains of Bitcoin. As institutions embrace Bitcoin, the demand for the cryptocurrency is expected to increase, further supporting the potential for price appreciation.
Overall, Bernstein’s positive stance on Bitcoin and MicroStrategy underscores the growing interest in cryptocurrencies among investors and institutions. The bullish outlook for Bitcoin’s price, driven by the limited supply and increasing demand, is fueling optimism for the future of the cryptocurrency. As companies like MicroStrategy continue to position themselves as leaders in the space, investors are looking to capitalize on potential gains while minimizing risks. With mainstream institutions offering easier access to Bitcoin, the cryptocurrency is expected to see continued growth and adoption in the coming years.
