On Tuesday, Bernstein predicted that the value of bitcoin could reach an estimated $150,000 by mid-2025, more than four times its current value of $35,000. This projection follows last week's surge in bitcoin prices to its highest level since May 2022, as investors continue to anticipate the approval of a bitcoin exchange-traded fund.According to Bernstein analyst Gautam Chhugani, the price of Bitcoin could reach $150,000 by 2025 due to optimism regarding the approval of a Bitcoin exchange-traded fund. This estimation is nearly five times the current price of around $34,000 which is more than double the previous all-time high of over $67,000, set back in November 2021. Bernstein also believes that gaining approval for the ETF would move up to 10% of Bitcoin's circulating supply toward ETFs, enabling conventional investors to acquire Bitcoin exposure straight from their investment portfolios. Consequently, the only current similar product is Grayscale's Bitcoin Trust, or GBTC, which currently holds around 3% of the total Bitcoin supply. Chhugani made this point clear when he stated: "You may not like Bitcoin as much as we do, but a dispassionate view of Bitcoin as a commodity, suggests a turn of the cycle. A good idea is only as good as its timing - SEC approved ETFs by world's top asset managers (BlackRock, Fidelity et al), seems imminent." This was released in a note while the analyst was initiating coverage on various Bitcoin mining companies. This was followed by the Halving of Bitcoin in April 2024, which will cause "losing miners" to disappear and afford the remaining miners the opportunity to reap a huge gain.
Recently, the value of Bitcoin rose to $35,000, its highest since May of 2022. Investors still remain hopeful of obtaining the green light, for a Bitcoin ETF, at the end of this year, even after the US Securities and Exchange Commission declined to appeal a court ruling from Grayscale's case against it. Even so, the court's ruling does not assure that the SEC will approve the ETF. SEC Chair Gary Gensler is known to be highly critical of the crypto industry as being widely inhabited by "fraudsters and scam artists", which raises the question of whether the division will still resist the crypto ETFs. Recent issues in the crypto industry have included the SEC's lawsuit against Binance for securities violations earlier this year, and FTX's bankruptcy in 2020, leading to current trials against its former CEO, Sam Bankman-Fried, for fraud.
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