Asset management company Bernstein stated in its research report today that Bitcoin is emerging as a global macro-political asset with a market value of over $3 trillion and is expected to quadruple its value by mid-2025. The report discusses the positive factors surrounding the crypto king one by one.
Bernstein: Bitcoin’s Fundamentals Have Never Looked So Good
Bernstein states in the report that the fundamentals of the largest cryptocurrency have never looked so good, highlighting that 70% of the circulating supply did not move last year. Analysts led by Gautam Chhugani wrote, “The stagnant circulating supply is at an all-time high in Bitcoin’s history. This is extraordinary for a financial asset with high loss rates, especially in a market known for exponential movements caused by supply congestion.”
Another potential positive catalyst mentioned in the report is the upcoming block reward halving, which will likely take place in April or May next year. According to Bernstein, the block reward halving is expected to reduce the selling pressure from miners in the monthly time frame from around $37,000 today to below $500 million.
Other Positive Factors Surrounding Bitcoin
The report also mentions the new Financial Accounting Standards Board (FASB) guidelines that allow companies to record market gains on their Bitcoin reserves. It is stated that this will positively influence the corporate preference to hold Bitcoin as a reserve asset and thus create new demand from companies.
Another tailwind highlighted by Bernstein analysts in the report is the approval of a listed spot exchange-traded fund (ETF) in the US that will facilitate companies’ and individual investors’ access to cryptocurrencies.
The analysts noted, “While the US Securities and Exchange Commission (SEC) continues to review applications from leading asset managers, a spot Bitcoin ETF in the US is making steady progress towards approval in early 2024.”
