Bitcoin could reach $150,000 in 2025 during new bull cycle

Bitcoin could reach $150,000 in 2025 during new bull cycle, AllianceBernstein has said.

Analyst Gautam Chhugani at Bernstein anticipates that the U.S. Securities and Exchange Commission (SEC) will approve a bitcoin ETF by the first quarter of 2024.

This optimistic projection is about five times the current bitcoin price of approximately $34,000 and more than double its all-time high of over $67,000 in November 2021. Bernstein also predicts that ETF approval could result in up to 10% of bitcoin's circulating supply moving towards ETFs, allowing traditional investors to gain direct exposure to bitcoin through their investment portfolios. Currently, the closest product is Grayscale’s Bitcoin Trust (GBTC), holding around 3% of outstanding bitcoin.

Chhugani wrote, “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 the world’s top asset managers (BlackRock, Fidelity, et al) seems imminent.”

The prediction was made in a note where Chhugani initiated coverage on various bitcoin mining firms. He noted that the bitcoin "halving" in April 2024, where bitcoin rewards are halved as part of a planned event in the currency's code, could lead to the elimination of "losing miners," making way for significant gains by the survivors.

Although bitcoin recently reached $35,000, its highest level since May 2022, the approval of a bitcoin ETF is not guaranteed. SEC Chair Gary Gensler, known for his criticisms of the crypto industry, may continue opposing crypto ETFs, despite a recent court ruling in favor of Grayscale's lawsuit against the SEC.

The crypto industry has faced challenges, including the SEC's lawsuit against Binance for securities violations and the bankruptcy filing of crypto exchange FTX last year, with its former CEO Sam Bankman-Fried currently on tria