Bernstein Sees Bitcoin Soaring to $300K by 2029 Amid Currency Debasement

Bernstein, an investment bank, has made a bold prediction about Bitcoin's future price. According to its analyst Gautam Chhugani, the cryptocurrency is likely to reach $300,000 by 2029.

The forecast is based on a 'price-to-marginal-cost ratio model,' which measures Bitcoin's market price against the cost of producing new coins through mining. This model suggests that Bitcoin will experience its next major peak at $150,000 by mid-2027, before eventually reaching the six-figure territory in 2029.

Bernstein links this prediction to a broader shift away from traditional fiat currencies, driven by governments' growing pressure to let their currencies weaken. This 'debasement trade,' as Chhugani calls it, is expected to benefit Bitcoin significantly due to its scarcity and lack of dilution risk.

The investment bank also notes that about 60% of Bitcoin holders are long-term investors who stay put even during significant price drops, which suggests a growing base of conviction among institutional and retail investors alike. This trend is seen as evidence that Bitcoin is maturing from a speculative instrument to a recognized store-of-value asset.