July 16, 2024

An analyst projects that by 2025, Bitcoin will reach $150k, and Microstrategy stock will rise.

April 09, 2024
2Min Reads
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By the end of 2025, Mark Plamer, an analyst with the Benchmark Company, believes that the price of Bitcoin will reach $150,00.

In an investor note dated April 8, Palmer made remarks that nearly doubled his previous price estimate of $990 for MicroStrategy (MSTR) to $1,875.

Palmer's confidence in MSTR stems from the company's Bitcoin investments. The leading cryptocurrency is predicted by the analyst to reach a price of "$150,000 by 2025." He pointed out that the impending halving event, which will see the supply of Bitcoin cut in half, will be extremely beneficial to MicroStrategy's enormous holdings of the cryptocurrency.
 

In addition, Palmer's price projection of $150,000 for Bitcoin is greater than his forecast on February 27 that the cryptocurrency would reach $125,000. BTC increased by almost 27% after this research, which allowed the analyst to raise their price target.

The Benchmark analyst emphasized the historical effect of the halving event on Bitcoin prices in a later discussion with Yahoo Finance. He pointed out that the supply shock caused by the Bitcoin halvings in 2012, 2016 and 2020 resulted in notable price appreciations.


He continued by saying that the impending halving might resemble a similar situation. The demand shock that analysts predict the spot Bitcoin ETF products would cause might potentially exacerbate the damage. Palmer anticipates that as additional institutions enter the market, demand for these ETF products will soar even higher.

Plamer has taken into account the company's propensity for deliberately amassing Bitcoin while making his prognosis on the target price of MSTR stocks.

Under Michael Saylor's direction, the company has been acquiring Bitcoin at a mean cost of $35,160. As of April 9, MicroStrategy has 214,245 Bitcoins, according to saylortracker.
 

Palmer notes that the company has increased its Bitcoin holdings for 15 straight quarters and believes this trend will continue. By the end of 2025, Saylor's company should have about 298,246 Bitcoins, up 40% from what it currently has.

It is anticipated that the company will use surplus cash from its enterprise software division and capital increases to finance this.

A number of analysts are promoting the post-halving scenario as a time when Bitcoin is expected to rise. Anthony Scaramucci, the founder of Skybridge Capital, expressed similar views on Bitcoin, predicting that the leading cryptocurrency will reach at least $170,000 during the 18-month post-halving period.
 

Analysts at cryptocurrency exchange Bitfinex have also stated that a price target of $150,000–169,000 has been set for Bitcoin. Analysts pointed out that because Bitcoin had already reached an all-time high before the event, this halving is distinct from the last one.


 

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