Bernstein "Bitcoin (BTC) Expected to Reach $200,000 This Year... Institutional and Government Demand Driving the Rise"

Global investment bank Bernstein has projected that Bitcoin (BTC) will reach $200,000 this year.

According to The Block, a cryptocurrency-focused media outlet, Bernstein analysts have reaffirmed their previous forecast that Bitcoin will reach $200,000 this year. They also predict that this growth will accelerate as inflows into Bitcoin spot Exchange-Traded Funds (ETFs) increase and the stablecoin market expands.

Bernstein expects an increase in funds flowing into Bitcoin this year. The report stated, "Many companies are likely to adopt Bitcoin as a financial asset like MicroStrategy," adding, "Such inflows are expected to increase up to $50 billion."

Additionally, "Bitcoin spot ETFs listed in the U.S. recorded a net inflow of $35 billion last year, and this year, Bitcoin ETF net inflows are expected to exceed $70 billion," it added.

There is also a forecast that a significant rise is expected if the U.S. strategic Bitcoin reserve plan materializes. Gautam Chhugani, a senior analyst at Bernstein, analyzed, "If the U.S. announces a strategic Bitcoin reserve, it could trigger a competition among countries to secure Bitcoin," noting that "the $200,000 price forecast does not reflect government demand." If the U.S. government's buying interest enters the market, Bitcoin prices could rise further.

Expectations for easing cryptocurrency regulations are also spreading. The report added, "The U.S. Securities and Exchange Commission (SEC) may show a favorable stance towards cryptocurrencies, which could act as a positive catalyst," and "Cryptocurrencies are now more closely intertwined with existing financial systems such as corporations, banks, and institutions, with less of the past's rapid rise and fall patterns."