Cryptocurrency enthusiasts and investors have reason to be optimistic, as Bernstein Wealth Management Company forecasts a substantial surge in the price of Bitcoin. According to a bullish memo released by the company, Bitcoin's value could potentially reach $150,000 by the year 2025.
Bernstein analyst, Gautam Chugani, expressed confidence in the prediction, stating that the company anticipates approval from the U.S. Securities and Exchange Commission (SEC) for a Bitcoin exchange-traded fund (ETF) by the first quarter of 2024.
This optimistic estimate is approximately five times the current price, hovering around $34,000, and more than double the all-time high recorded in November 2021, which exceeded $67,000, as reported by CNBC.
The company also foresees that approval of cryptocurrency exchange-traded funds (ETFs) could redirect up to 10% of the circulating Bitcoin supply towards these investment vehicles.
Chugani articulated, "You may not like Bitcoin as much as we do, but a fair look at Bitcoin as a commodity indicates a shift in the cycle." He further emphasized the significance of timing, noting that SEC-approved ETFs are becoming increasingly probable, especially with endorsements from major global asset managers.
This prediction emerged in a memo where Chugani discussed various Bitcoin mining companies, highlighting the upcoming "halving" event in April 2024. The halving event involves reducing Bitcoin rewards by half as a planned and recurring event embedded in the currency's core code. This is expected to weed out less efficient mining companies, paving the way for significant gains for the survivors.
Last week, Bitcoin reached $35,000, its highest level since May 2022. Investors are still hopeful for the approval of cryptocurrency ETFs by the end of the year after the SEC rejected an appeal from Grayscale, a major player in the crypto investment space.
However, it's essential to note that a court ruling does not guarantee SEC approval for a Bitcoin ETF.
SEC Chairman Gary Gensler has consistently criticized the cryptocurrency industry, labeling it as rife with "fraudsters and scam artists." The open question remains whether the regulatory body will continue to combat cryptocurrency ETFs.
The cryptocurrency industry has faced recent challenges, including a lawsuit filed by the SEC against Binance earlier this year. Additionally, cryptocurrency exchange FTX filed for bankruptcy last year, and its former CEO, Sam Bankman-Fried, is currently facing fraud charges.
The future of cryptocurrency regulation and investment vehicles remains uncertain, with ongoing debates about the industry's legitimacy and the potential for regulatory oversight. Investors and enthusiasts are closely watching for developments that could shape the trajectory of Bitcoin and the broader cryptocurrency market.
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