Bitcoin May Hit $1 Million by 2033, Report Says

The price of bitcoin will soar above $1 million in less than ten years, and hit $500,000 by 2029, according to a recent report from AllianceBernstein.

The price of bitcoin will soar above $1 million in less than ten years, hitting $500,000 by 2029, according to a recent report from AllianceBernstein.

In the next year, bitcoin will be on track to reach $200,000, a considerable lift from the modest prices bitcoin has shown in recent weeks.

However, despite bitcoin's recent dip in value, market analysts project continued growth over the next year. "Bitcoin being the younger asset has more headroom to grow while being adopted within asset allocation portfolios," the AllianceBernstein report said.

With the launch of spot bitcoin exchange-traded funds (ETFs) in January, the 11 new investment vehicles are collectively managing approximately $55 billion in assets. This number is relatively modest compared to the assets of gold ETFs, which are managing $210 billion. AllianceBernstein said that bitcoin ETFs were only managing 0.16% in addressable asset pools.

More than two-thirds of inflows to ETFs stem from retail investors today, AllianceBernstein said, but the firm forecast that institutional adoption of bitcoin ETFs was impending from wealth platforms, registered investment advisers, and wirehouses.

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AllianceBernstein underscored the supply and demand dynamics of bitcoin amid the quadrennial bitcoin halving, which most recently in April saw miners' newly minted bitcoin rewards slashed from 6.25 BTC to just 3.125 BTC, impacting their overall profitability.

After the May 2020 halving, corporate interest from firms including MicroStrategy (NASDAQ:MSTR) – the world's largest corporate holder of BTC on its balance sheets – Grayscale and Tesla (NASDAQ:TSLA) drove a price surge for the world's largest cryptocurrency.

The firm also noted that significant upward price explosions were typically influenced by a variety of factors, including sell pressure after the bitcoin halving every four years and the reduced bitcoin supply from HODL (hold on for dear life) investors, who tend to keep bitcoin even amid dramatic price jumps and dips.

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