Since the first launch of Bitcoin in 2009, this cryptocurrency has become a spotlight for crypto and technology enthusiasts. The New Liberty Standard Exchange recorded at the first launching, that Bitcoin price was only $0,00099 and now can reach over $74,000.

The price of Bitcoin is predicted to skyrocket again next year, Analysts from Bernstein Research predict that Bitcoin could reach $200,000 by the end of 2025. Gautam Chhugani, the firm’s digital assets expert, called this forecast “conservative” due to Bitcoin’s limited supply and rising U.S. debt, currently at about $35 trillion.

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Bernstein’s new “Bitcoin Blackbook” was created to help institutional investors understand Bitcoin’s role in a shifting financial landscape. With inflation concerns and national debt levels climbing, Bitcoin is seen as a strong alternative to traditional assets like gold.

Currently, Bitcoin trades at around $66,393, which is a 10% drop from its March peak of nearly $74,000. However, Bitcoin has gained 57% this year. Bernstein analysts believe Core Scientific is undervalued, especially after securing a $2 billion hosting agreement with AI company CoreWeave. This deal increases Core Scientific’s hosting capacity to around 500 megawatts, with an estimated $8.7 billion value over 12 years. The firm’s stock is expected to perform well, with a price target of $17.

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Reason behind Bitcoin’s price expected to reach $200,000

The prediction that Bitcoin price will surge to $200,00 is based on Bitcoin’s fixed supply, rising demand, and its role as a hedge against inflation and increasing U.S. debt. Additionally, growing institutional interest and indirect investment opportunities in companies related to Bitcoin mining strengthen the case for its price surge.

For those hesitant to invest directly in Bitcoin, Bernstein suggests other ways to gain exposure to the cryptocurrency market. Shares in companies like MicroStrategy and Robinhood are recommended, as they are linked to Bitcoin. 

Furthermore, U.S.-based firms like Riot Platforms, CleanSpark, and Core Scientific are highlighted for their roles in Bitcoin mining, which require significant power resources. Core Scientific also stands out for its involvement in Bitcoin mining and AI hosting services.