Bernstein Predicts New Stage of Bitcoin Growth
Date: 2025-02-18 Author: Gabriel Deangelo Categories: CRYPTO PAYMENTS
Bernstein analysts said that Bitcoin has entered the next phase of the bull cycle, with the initiatives of the new administration of US President Donald Trump becoming the key driver of growth. This was reported by The Block.
Experts note that the current uptrend started in the fourth quarter of 2023 due to expectations of the approval of spot ETFs in the US. The launch of these funds in January 2024 led to a significant increase in the price of Bitcoin - from $25,000 to $46,000, and then to a new historical maximum of $74,000 amid the success of exchange-traded products.
Another powerful impetus for the market was Trump's victory in the November 2024 elections. The new administration promised to make the United States a leading hub for the crypto industry, including the creation of a national bitcoin reserve and easing regulations. As a result, by the time of the presidential inauguration on January 20, 2025, the price of Bitcoin reached $109,000.
In addition to political factors, Bernstein also highlights other reasons for the growth. Among them are active investments by large players, including the purchase of a Bitcoin ETF for $436.9 million by the Abu Dhabi sovereign wealth fund Mubadala, as well as an increase in crypto assets from large institutional investors such as Goldman Sachs, Strategy (formerly MicroStrategy) and Barclays.
Experts expect that the influx of capital into Bitcoin ETFs will continue, and by the end of 2025, the volume of investments in this segment could reach $60 billion. In addition, the simplification of regulatory requirements for banks initiated by the US Securities and Exchange Commission will contribute to wider adoption of cryptocurrencies among traditional financial institutions.
Bernstein also emphasizes that interest from banks, institutional investors, and large corporations makes Bitcoin a serious competitor to gold. Despite its capitalization of $2 trillion, the cryptocurrency is still significantly inferior to the precious metal, whose market value is about $18 trillion. However, this indicates significant potential for further growth.
At the same time, CryptoQuant analysts express the opposite point of view, warning of a possible transition of the market into a bearish phase due to a decrease in interest in risky assets.
