Bernstein Reiterates $300K Bitcoin Forecast Amid Dollar Devaluation Concerns

Investment bank Bernstein is sticking to its forecast that Bitcoin will reach $300,000 in 2029. The firm cites concerns over a decline in the value of the dollar as the main driver behind this prediction.

The 'debasement trade' is seen as a key factor here, with investors shifting funds into scarce assets like gold and cryptocurrencies as a hedge against currency devaluation. Bernstein analysts point to the end of a 40-year rate-cutting cycle and the rising US government debt of $40 trillion as evidence that policymakers may tolerate a decline in the dollar's value.

The forecast also ties in with recent U.S. Treasury actions, including increased long-term bond buybacks, which are seen as a signal that authorities are prioritizing restraint in rising interest rates. This has led to expanding flows into scarce assets like gold and Bitcoin, as investors brace for a weaker dollar.