Stablecoins and Bitcoin ETFs: Key Trends Driving Crypto Market Growth, According to Bernstein

Stablecoins and Bitcoin ETF- Bernstein Analysts Predict $120 Billion Bitcoin Purchases by 2025

Stablecoins and Bitcoin ETF– Amid growing investor interest in the cryptocurrency space, recent discussions with diverse investor groups across the United States have revealed a strong recognition that “crypto is back,” according to analysts at Bernstein. The research and brokerage firm, led by Gautam Chhugani, noted that investors from various sectors—finance, payments, energy, technology, and even crypto-specific industries—are gearing up to ramp up their market activity. However, they observed that many investors remain unaware of the “transformative digital assets regulatory regime” anticipated under the current political landscape.

Bitcoin’s Price Target and Market Catalysts

Bernstein analysts focused on key catalysts that could drive Bitcoin to reach its long-term target of $200,000 by the end of 2025. These include regulatory developments such as President Trump’s crypto executive order, which seeks to explore digital asset reserves, and the repeal of SAB 121 by the SEC, enabling U.S. banks to hold digital assets for the first time. In addition, Bitcoin exchange-traded funds (ETFs) and corporate Bitcoin purchases are expected to significantly boost market liquidity, with Bernstein predicting $120 billion in Bitcoin-related purchases by 2025.

Investor Sentiment on Crypto and AI Mining Stocks

The analysts highlighted interest in crypto-related stocks, particularly those linked to AI-driven Bitcoin miners and crypto exchanges. For example, companies like Riot and Core Scientific are gaining attention due to their AI pivot, with Riot expected to offer better upside potential due to its lower valuation. Additionally, exchanges like Robinhood are seen as strong beneficiaries of the ongoing “crypto deregulation” trend, with its stock up 370% in the last year.

Stablecoins and MicroStrategy’s Role

Looking ahead, Bernstein expects U.S. dollar dominance online to increase through stablecoin legislation in 2025, driven by demand from crypto markets and cross-border payments. MicroStrategy, while facing criticism for its Bitcoin exposure, continues to pave the way for corporate Bitcoin integration.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.