Brokerage firm Bernstein projects a Bitcoin BTC/USD market capitalization of more than $3 trillion by mid-2025.
About 70% of Bitcoin’s total circulating supply has not been involved in any trading activity over the past year, the firm’s analysts say.
These churn rates are “extraordinary for a financial asset, particularly one known for its exponential moves driven by a supply squeeze,” the report, cited by Coindesk, stated.
The analysts, led by Gautam Chhugani, also expect the upcoming Bitcoin halving event — anticipated to occur around April or May next year — to boost the cryptocurrency’s value. The monthly selling pressure from Bitcoin miners will drop to less than $500 million from the current rate of approximately $1 billion (based on a Bitcoin price of $37,000).
Another key development will be the new accounting guidelines set by the Financial Accounting Standards Board (FASB), which will permit companies to reflect mark-to-market gains on their Bitcoin holdings.
Corporates will begin holding Bitcoin as a treasury asset, the said.
There’s the potential approval of a U.S.-listed spot Bitcoin exchange-traded fund (ETF), which would simplify the process for both companies and retail investors to access Bitcoin.
As the U.S. Securities and Exchange Commission (SEC) continues to engage on the applications from leading asset managers like BlackRock and Ark Invest.
Lastly, Bitcoin could serve as a hedge against currency debasement. This situation could arise from the delayed effects of interest rate adjustments made to counter inflation, the report added.