According to a note from Bernstein, Bitcoin is poised for significant growth, potentially hitting $300,000 per token by 2029, which represents a 285% increase from its recent trading price of $78,045.70. This forecast is based on a price-to-marginal cost framework and suggests a market peak of $150,000 by mid-2027.
The analysts attribute this bullish outlook to the increasing appeal of scarce assets amid concerns over the U.S. national debt, which recently surpassed $40 trillion, and persistent inflation. The Treasury's recent actions to cap bond yields have further fueled fears of dollar depreciation, prompting renewed interest in Bitcoin, which has already seen a 21% increase over the past month.
Additionally, the report highlights the potential benefits for Strategy Inc., the largest corporate holder of Bitcoin, which owns approximately 4% of the world's Bitcoin. Bernstein maintains an outperform rating on Strategy, despite lowering its 12-month price target from $450 to $350, indicating a still substantial upside of 176% from its recent close.
The consensus among analysts remains positive, with 18 out of 20 recommending the stock as a buy or strong buy, even as Strategy's shares have declined nearly 20% year-to-date and are down 65% from a year ago