Bernstein Analysts Predict Bitcoin Could Reach $1 Million by 2033

Bernstein analysts have projected that Bitcoin could hit $1 million by 2033, with a notable cycle-high of $200,000 expected by 2025. This bullish forecast comes as Bernstein initiated coverage on MicroStrategy, the largest corporate holder of Bitcoin.

MicroStrategy’s Ascendancy in the Crypto Space

In the last four years, MicroStrategy has evolved from a modest software company to a major cryptocurrency player, thanks to the strategic vision of its founder and chairman, Michael Saylor. Under Saylor’s leadership, MicroStrategy has amassed 214,400 Bitcoin, starting its accumulation in 2020, now holding about 1.1% of the global Bitcoin supply, valued at approximately $14.5 billion.

Bernstein analysts Gautam Chhugani and Mahika Sapra have given MicroStrategy an outperform rating with a $2,890 price target, a significant rise from its current share price of around $1,484 on the Nasdaq. This rating reflects MicroStrategy’s active leveraged Bitcoin strategy, distinguishing it from passive spot ETFs and leading to a higher amount of Bitcoin per equity share.

Bitcoin’s Future Price Predictions

Bernstein’s optimistic Bitcoin price forecast is fueled by growing demand from spot ETFs and Bitcoin’s limited supply. The analysts now estimate Bitcoin could reach $500,000 by 2029, revising the 2025 estimate to $200,000 from $150,000.

MicroStrategy’s strategic use of convertible debt allows the company to capitalize on Bitcoin’s potential upside while minimizing liquidation risks. Recently, MicroStrategy proposed a $500 million debt sale of convertible notes to further increase its Bitcoin holdings, showcasing its commitment to expanding its portfolio.

Corporate Bitcoin Holders Reaping Rewards

Major corporate investors in Bitcoin, like MicroStrategy, are seeing substantial profits. According to Saylortracker, with Bitcoin prices around $67,000, MicroStrategy’s holdings are valued at over $14.59 billion, reflecting unrealized profits of nearly $6.5 billion—a 104% yield-to-date from its initial investment in 2020.

MicroStrategy’s successful strategy has inspired other public companies to consider adding Bitcoin to their balance sheets. For instance, Metaplanet recently incorporated Bitcoin into its treasury assets to mitigate exposure to the Japanese yen, citing Bitcoin’s potential as a hedge against inflation and a tool for long-term capital appreciation.