As of November 11, the Bitcoin (BTC) price has briefly touched an all-time high of $85,000. This has become a significant movement for the cryptocurrency. With this movement, BTC has entered a “price discovery” phase, which is pretty uncharted in its future trajectory.
According to analysts, if Bitcoin continues to respect the demand zone and avoids a breakdown from the double-top pattern, a strong rally may be experienced.
Bitcoin Price Soars to New Highs: Bernstein Predicts $200K Target
Bitcoin is on an unprecedented tear as the digital currency has reached new all-time high of $85K. The largest crypto currency also has reached a record $1.7 trillion market cap, adding $1 trillion over the past year. This makes BTC larger than all but six public companies worldwide.
The record-reaching is happening already for a few days following the election victory of Donald Trump and the 25 basis point rate cut by the Federal Reserve.
BITCOIN HITS $85K, BEARS LEFT SPEECHLESS! pic.twitter.com/NyibCC4K5v
— fity.eth (@Fityeth) November 11, 2024
This political and economic turn has re-awakened investor interest in BTC, driving the price into uncharted territory. It came after a brave recommendation from Bernstein and Co., one of the most prominent asset managers overseeing $725 billion in assets, to increase exposure to BTC and other cryptocurrencies as inflation rises and institutional interest grows.
Bernstein analysts believe BTC will thrive as a hedge-asset or “digital gold” during economic turmoil. They estimate crypto ETF assets could rise from $60 billion to $190 billion by 2025, boosting demand and liquidity.
Supported by growing institutional demand and limited supply, the crypto could reach $200,000 by 2025. Spot Bitcoin ETFs will also drive growth by attracting hesitant institutional investors.
Looking longer term, Bernstein projects the coin could reach $1 million by 2033, driven by its role as a hedge. The market’s development, with major players like BlackRock and Fidelity entering, signals growing adoption and legitimacy for digital assets.
Bitcoin’s Scarcity and Growing Demand Drive Up Prices
The mechanics of BTC supply, including cutting events that reduce the rate at which new coins are created, are supposed to put upward pressure on the price. Recently, halving reduced the daily supply from 900 BTC to 450 BTC, which, according to historical studies, has triggered an astronomical price boost.
Large investors such as MicroStrategy, holding about 1.1% of the total supply, are all in and buying Bitcoin through convertible debt, thus minimizing liquidation risks and increasing corporate confidence in its long-term value. Combined with the buoyancy in institutional demand and desirable macroeconomic conditions, Bernstein’s predictions are upbeat on this largest cryptocurrency.
However, James Toledano, COO at Unity Wallet, warns that while the post-election price gains are promising, caution is necessary. He told CoinGape that Trump’s unpredictable nature could lead to market volatility and large price swings. However, his support signals confidence in the long-term potential of cryptocurrency, which may drive future adoption and integration. Despite Bitcoin’s slow transaction times, the recent rally, driven by various factors, indicates growing confidence in crypto assets as viable global assets, says Toledano.
Teuta Franjkovic
Teuta is a seasoned writer and editor with over 15 years of experience in macroeconomics, technology, and the cryptocurrency and blockchain industries.
Starting her career in 2005 as a lifestyle writer for Cosmopolitan, she expanded into covering business and economy for several esteemed publications like Forbes and Bloomberg.
Influenced by figures like Don and Alex Tapscott and Laura Shin, Teuta embraced the blockchain revolution, believing crypto to be one of humanity’s most crucial inventions.
Her fintech involvement began in 2014, focusing on crypto, blockchain, NFTs, and Web3. Known for her excellent teamwork and communication skills, Teuta holds a double MA in Political Science and Law.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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