This comes as the cryptocurrency market continues to gain traction, with the bitcoin price currently up by about 60% since the start of the year.

According to the analysts, the introduction of U.S. regulated exchange-traded funds (ETFs) has been a game-changer for the crypto market, attracting institutional investors and bringing in approximately $15 billion in net new flows. They predict that bitcoin ETFs will make up around 7% of bitcoin in circulation by 2025 and 15% by 2033.

Bernstein's updated price forecast sees bitcoin reaching $200,000 per bitcoin by mid-2025, which would result in a market capitalization of around $4 trillion—a substantial 200% increase from its current value of $1.3 trillion.

The surge in bitcoin's price is attributed not only to the growing popularity of ETFs but also to the recent "halving" event. The halving, which occurred in April, reduced the daily supply of new bitcoins from approximately 900 to 450. This reduction, combined with new catalysts for bitcoin demand, has resulted in exponential price movements, according to the analysts.

Since the halving, bitcoin miners have faced increasing pressure as their net position has gradually declined. This has led to tighter operations and potential challenges in maintaining profitability. Yuya Hasegawa, a bitcoin and crypto market analyst, noted that while the outflow of bitcoins from miners does not necessarily impact the price directly, historically, it has been associated with price stagnation when profitability deteriorates.

Looking ahead, the analysts anticipate that bitcoin could retest the $70,000 to $72,000 range in the short run, but breaking through this level could prove to be challenging. They suggest that despite potential short-term hurdles, bitcoin is currently in a new bull cycle, supported by both the halving event and the increasing institutional investment.

The rise of bitcoin ETFs has been extraordinary, with these funds becoming some of the fastest-growing in history since their introduction in January. In just over six months, the 11 spot bitcoin ETFs have amassed a total net inflow of $15.30 billion.

Overall, the increasing adoption of bitcoin ETFs, coupled with the positive sentiments surrounding the halving event, has fueled optimism among analysts. Should Bernstein's prediction hold true, bitcoin is likely to dominate the crypto market, with a market capitalization of $4 trillion, possibly by mid-2025.

Disclaimer: The above analysis and predictions are based on the opinion of analysts at broker Bernstein, and investors are advised to conduct their own research before making any investment decisions.

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