Bernstein Predicts New Bull Market Phase for Bitcoin

Analysts at Bernstein have announced the onset of the next phase of the bitcoin bull market, with key catalysts being initiatives from the administration of former U.S. President Donald Trump. This was reported by The Block.

According to experts, the current upward trend began in the fourth quarter of 2023 amid expectations of approval for U.S. spot ETFs. Following their launch in January 2024, the price of the leading cryptocurrency rose from $25,000 to $46,000, and the success of the exchange-traded funds pushed the price to a new high of $74,000.

The market received its next boost in November after Trump’s victory in the presidential elections. The new administration promised to make the U.S. the “crypto hub of the world,” including the development of a national bitcoin reserve and a favorable regulatory framework. By the time of the U.S. leader’s inauguration on January 20, 2025, the price of bitcoin had reached $109,000.

Among other growth factors, Bernstein highlights recent investments, including the purchase of ETFs worth $436.9 million by Abu Dhabi’s sovereign fund Mubadala, as well as the increase in bitcoin reserves by major holders such as Goldman Sachs, Strategy (formerly MicroStrategy), and Barclays. 

Analysts predict a further influx of investments into BTC-ETFs, which could reach $60 billion in 2025. The lifting of certain restrictions for banks by the U.S. Securities and Exchange Commission also encourages the adoption of cryptocurrencies.

According to Bernstein analysts, growing interest from banks, institutional investors, and corporations paves the way for bitcoin to compete with gold. With a market capitalization of $2 trillion, bitcoin still significantly lags behind gold, whose market value is estimated at $18 trillion. This indicates a substantial growth potential for the cryptocurrency.

Meanwhile, CryptoQuant has warned of the threat of bitcoin transitioning to a bearish phase due to declining investor interest in risky assets.