Global asset management giant Bernstein, which oversees $800 billion in assets under management, has once again reiterated its $200,000 target for Bitcoin price, calling it both “high-conviction and conservative.” Bitcoin’s upward progress makes investors more optimistic, as companies use it more and more to secure their money against inflation.
Beyond Bitcoin’s “store of value” use case, their most recent “Digital Assets Memo” demonstrates a growing public interest in financial innovation made possible by blockchain technology.
Although many investors distinguish between “ blockchain and crypto” according to Bernstein, this line is becoming increasingly hazy. The experts cite tokenization-driven financial applications and stablecoins developed on public blockchain networks, such as Ethereum, which has maximum market share.”
At the time of writing, Bitcoin price was trading at $108,816 on Tuesday, June 10, only slightly under its previous highest mark from the end of May. Rising prices in the crypto sector are being driven by hope Bloom in expectations of pro-crypto decisions by the White House and more investment from large firms.
Nowadays, an increasing number of public companies decide to own Bitcoin, as it helps them address inflation and improve their financial diversity.
According to Elliot Johnson, CEO of Bitcoin Treasury Corp., the digital asset has proven to outperform traditional inflation hedges.
“Over the past five years, Bitcoin has gained more than 1,000%, while gold has returned around 92.5%,” Johnson said. “Meanwhile, the U.S. dollar has lost more than 20% of its value due to inflation.
Strategy (MSTR) is first in the race, as it recently increased its Bitcoin holdings by acquiring 1045 more, as per the reports. After the announcement, the company’s shares rose more than 4% because of investor belief in its plan to aggressively buy Bitcoin.
Some experts advise that there are still risks involved in managing Bitcoins treasury. Professor David Yermack at NYU Stern School of Business said that using Bitcoin in corporate balance sheets could cause major financial stress if the value of Bitcoin crashes rapidly.
“A rapid price drop could make companies vulnerable to bankruptcy if they’re overexposed,” Yermack cautioned.
This risk became evident when Trump Media & Technology Group (DJT) announced plans to build one of the largest Bitcoin treasuries among public companies — only to see its stock drop more than 10% in a single session.
Bernstein, however, is still upbeat, saying $200K is a safe estimate considering the quick evolution of institutional involvement and healthy macroeconomics.
Besides hype, it seems that institutional support is the main driver of Bitcoin’s positive momentum. Since Bernstein has increased its BTC outlook to extremely high forecasts and several corporations are already treating bitcoin as a strategic investment, it is becoming less likely that bitcoin will not reach $200,000.
Also Read: Matrixport Predicts Bitcoin Price to Hit $116,000 in July
