After trading down or sideways for much of the past seven months, Bitcoin (CRYPTO: BTC) may finally be ready for a major outbreak. The investment firm Bernstein just released a report detailing all the reasons why it thinks Bitcoin could reach a new all-time high of $200,000 by the end of 2025.
Based on Bitcoin’s current price of around $68,000, that would represent a gain of almost 200%. As a result, billionaire investors now seem to be rushing to buy the cryptocurrency. The most notable of these include hedge fund managers and technology entrepreneurs, and they all seem to believe that Bitcoin is poised for a major rally after the 2024 presidential election. So, could they be right?
Michael Saylor, executive chairman of MicroStrategy (NASDAQ:MSTR)is perhaps the most prominent of the billionaire bulls. At a Bitcoin conference in Nashville, Tennessee last summer, he predicted that the digital currency could reach a price of $13 million by the year 2045. And he continues to buy aggressively for MicroStrategy, to the point where the company now controls more than $13 million. 1% of all Bitcoin in the world.
Other tech billionaires are also jumping into Bitcoin, including Mark Cuban and Jack Dorsey, principal of Block. That includes Silicon Valley’s top venture capitalists, some of whom are now getting involved in the 2024 presidential election. In a sign of their bullish outlook for crypto, Dorsey recently predicted that crypto could reach a price of $1 million by 2030.
Finally, there are the billionaire hedge fund managers jumping into the new spot Bitcoin Exchange Traded Funds (ETFs). Based on 13F data from the Securities and Exchange Commission, it is possible to summarize which funds are buying it, and how much they own.
One of the biggest names to watch is Millennium Management, led by billionaire Israel Englander, which loaded $2 billion worth of Bitcoin ETFs early this year. All told, there are now more than 600 investment firms that have significant holdings of Bitcoin ETFs.
Based on the above, it can easily be concluded that these billionaires mainly buy Bitcoin because they expect its price to increase significantly in the short term. In the crypto industry this is known as ‘Number Go Up’. You buy Bitcoin because you hope its price will rise, and you don’t have to worry about why.
But that probably paints an overly simplistic picture of billionaires’ purchasing activity. As part of his $200,000 price prediction for Bitcoin, Bernstein laid out some compelling reasons to buy it.
