Bernstein Predicts $200K Bitcoin: Here Are the 3 Factors Driving the Surge

• Bernstein predicts Bitcoin will hit $200,000 by 2025, driven by pro-crypto policies under Trump’s administration, a U.S. Bitcoin reserve, and growing institutional demand.
• The predicted Bitcoin surge is fueled by increased institutional interest, Bitcoin ETFs, and Trump’s crypto-friendly policies, which are expected to bolster confidence and drive demand.

After recent Bernstein analysis predicted a huge move for Bitcoin following the U.S. election, as CNF reported, Bernstein analysts have now doubled down on their ambitious prediction of Bitcoin reaching $200,000 by the end of 2025.

Led by Gautam Chhugani, the team attributes their confidence to Bitcoin’s near-$100,000 surge and highlights the cryptocurrency’s potential for exponential growth.

First proposed in June 2024, the forecast gained momentum following the U.S. presidential election and Trump’s victory, signaling a favorable environment for cryptocurrencies.

The report identifies three critical factors for Bitcoin’s projected rise: pro-crypto regulatory policies under Trump’s administration, plans for a U.S. national Bitcoin reserve, and surging institutional demand, as highlighted below.

Pro-Crypto Regulatory Promises

Donald Trump’s administration has pledged to implement crypto-friendly policies, such as limiting the SEC’s enforcement powers, empowering the CFTC, and positioning the U.S. as a global crypto hub. These steps are expected to bolster investor confidence and attract significant market activity.

U.S. National Bitcoin Reserve

Trump’s proposal for a national Bitcoin reserve, supported by legislative initiatives like the Bitcoin Act of 2024, aims for the U.S. to acquire 5% of Bitcoin’s supply over five years. This move would mark a pivotal shift toward sovereign Bitcoin adoption, driving demand.

Growing Institutional Demand

Increasing institutional interest is evident through MicroStrategy’s Bitcoin acquisitions, the growth of Bitcoin ETFs, and miners’ continued accumulation of the asset. These trends reduce selling pressure and sustain upward momentum for Bitcoin’s price.

Staying on a positive note, it is also important to reflect on the previous CNF update, highlighting that Bernstein analysts have raised their Bitcoin price prediction from $150,000 to $200,000 by the end of 2025. This revision was driven by increased demand through ETFs and a reduced supply due to Bitcoin halving.

At the time of writing, Bitcoin (BTC) is currently trading at $91,634.54, having surged by 1.80% in the past day and 5.20% in the past week. See the BTC price chart below.