Bitcoin’s price is projected to rally above $200,000 in the long term, according to a recent report by Bernstein Research. The report attributes this bullish prediction to increasing institutional adoption and strong network fundamentals. Bernstein highlights the significant role institutional investors are playing in reshaping the Bitcoin network, with ten global asset managers now controlling nearly $60 billion in regulated Exchange-Traded Funds (ETFs). This trend is expected to continue, with Wall Street projected to surpass Satoshi as the top Bitcoin holder by the end of 2024.
The report also points to the strong institutional enthusiasm for Bitcoin demonstrated by this year’s ETF landscape. Bitcoin-related products accounted for six of the top ten most successful ETFs launched in 2024. Despite a temporary pullback in recent data, total assets under management for Bitcoin-related products have exceeded $65 billion.
BlackRock, one of the leading asset managers, has been a significant contributor to the rising institutional interest in Bitcoin. The company recently increased its Bitcoin stake by purchasing $1 billion through its iShares Bitcoin Trust. BlackRock now holds approximately $24 billion worth of BTC, accounting for around 1.76% of the coin’s total supply. BlackRock CEO Larry Fink believes that Bitcoin now rivals Gold as a distinct asset class.
Bitcoin’s network fundamentals also indicate strength. The cryptocurrency is currently trading at $66,937, showing a slight uptick in the daily chart. While a bearish engulfing pattern has formed, historically, this pattern has a high success rate in predicting short-term reversals. The futures market has seen Open Interest (OI) approach $40 billion, with prices testing $69,000.
Technical indicators suggest a likely retest of the $60,000 support level, with key resistance levels at $67,500 and $68,000. However, Bitcoin’s network fundamentals remain strong. The hashrate has reached record highs, active addresses have increased since mid-September, and network fees have also risen, indicating significant transaction activity. Options traders also show strong bullish sentiment, with Open Interest focused on $80,000 strike prices for November expiry.
Overall, the combination of increasing institutional adoption and strengthening network fundamentals is expected to drive Bitcoin towards a historic bullish rally in the near future.