Bernstein Analysts Predict the Next Bull Market Cycle for Bitcoin

Analysts at research and brokerage firm Bernstein recommend investors prepare for the next stage of the bull market for Bitcoin and related assets. They note that the current bull trend began in the fourth quarter of 2023, when anticipation of the approval of spot Bitcoin ETFs in the US pushed the price of BTC from $25,256 to $46,341.

Following the successful launch of the ETF, Bitcoin reached a new all-time high of $74,100 on January 11, 2024, followed by a consolidation phase. Donald Trump’s victory in the November 2024 presidential election sparked new growth momentum, leading BTC to $108,970 on the day of his inauguration in January 2025.

Factors for further growth of Bitcoin

Analysts led by Gautam Chhugani emphasize that a number of factors contribute to the further growth of Bitcoin:

• Creation of a national reserve of BTC – according to the instructions of the President, Crypto-Task Force, led by David Sachs, is developing a plan to form a national reserve of bitcoins.
• US Sovereign Fund – it is expected that it will invest in leading American crypto companies and strategic assets.
• Bitcoin Reserve Funding – Possible sources include the Federal Reserve or the US Treasury. Financing could be carried out through the issuance of government debt or the sale of part of the gold reserves, which will lead to a sharp revision in the value of BTC.
• Competition among countries – it is expected that other countries will follow the example of the United States and begin to form their own bitcoin reserves.

Additional catalysts for BTC growth

Among other factors contributing to the continuation of the bull market, analysts highlight:

• Big investment in BTC – Abu Dhabi sovereign fund Mubadala invested $436 million in Bitcoin ETF, while Goldman Sachs, Barclays and Paul Tudor Jones increased their positions.
• MicroStrategy’s latest purchase – the company purchased $741 million worth of BTC, increasing its holdings to 478,680 BTC.
• Inflow of funds into Bitcoin ETF – $5 billion has been invested since the beginning of 2025, and by the end of the year the amount could reach $60 billion.
• The SEC’s repeal of SAB 121 opens up the opportunity for banks to provide crypto custody services.

Bitcoin – a new alternative to gold?

Bernstein emphasizes that the massive adoption of Bitcoin by banks, institutional investors and sovereign wealth funds is strengthening its position as an alternative to gold. With BTC’s market capitalization at $2 trillion and gold reserves estimated at $18 trillion, analysts see significant potential for further growth in Bitcoin.