Bitcoin Poised for Meteoric Rise with a Forecast of $3 Trillion Market Cap by 2025

By mid-2025, Bitcoin (BTC) might have a market capitalization of over $3 trillion, making it a worldwide macropolitical asset, according to a thorough study report by broker Bernstein. The data demonstrates the strong foundations of Bitcoin, with an incredible 70% of the entire supply remaining unclaimed in the last year and hitting a record high.

The remarkable churn rates are emphasized by analysts, lead by Gautam Chhugani, as a historic turning point in the history of Bitcoin, especially for a financial instrument that is recognized for its exponential movements brought on by supply constraints. This tenacity provides a strong base for the projected explosive increase in the market capitalization of cryptocurrencies.

Bitcoin Halving as a Catalyst

The anticipated halving of Bitcoin, which is anticipated to occur in April or May of the following year, is a possible encouraging stimulus. With the price of a bitcoin currently at $37,000, Bernstein predicts a large decline in the monthly selling pressure from miners, from the current $1 billion to less than $500 million.

The advantageous accounting treatment anticipated in accordance with the latest Financial Accounting Standards Board (FASB) principles is also highlighted in the study. It is anticipated that mark-to-market gains on bitcoin inventory would favorably impact corporate preferences for retaining Bitcoin as a treasury asset, creating fresh demand from corporates.

Another possible windfall, as indicated by Bernstein’s study, is the approval of a spot Bitcoin exchange-traded fund (ETF) that is listed and traded in the US. When such an ETF is approved, which is predicted to happen in early 2024, it should make it easier for businesses and individual investors to acquire Bitcoin. Prominent asset managers’ petitions are being aggressively reviewed by the Securities and Exchange Commission (SEC).

The significance of Bitcoin as a “debasement hedge” is expected to become more prominent given the scenario of debt monetization and a possible economic recession in early 2024. According to the analysis, Bitcoin may be a robust asset with a trailing influence on rates that adjust for inflation in the face of inflationary fears.