Bitcoin could rise to $200,000 by the end of 2025 as institutional investors dominate the market, a new Bernstein report reveals. With Wall Street set to become the largest holder, BTC’s potential is further boosted by the consolidation of miners and rising AI energy demand.

Bitcoin's Institutional Era to Drive Price Surge

As Bitcoin enters "a new institutional era," a report by Bernstein Research on October 22 predicted that the cryptocurrency's price might reach $200,000 by the end of 2025.

In an Oct. 23 article on the X platform, Matthew Sigel, head of digital asset analysis at VanEck, stated that Bernstein's 160-page "Black Book" explains why Bitcoin miners will keep consolidating the sector.

"Ten global asset managers now own ~$60Bn wrapped as regulated [exchange-traded funds] compared with $12Bn in September 2022," the report says.

Wall Street Set to Overtake Satoshi as Bitcoin’s Biggest Holder

Bernstein predicted that Wall Street will surpass Satoshi as the leading Bitcoin wallet by the end of 2024, Cointelegraph shares.

According to a post on the X platform by Nate Geraci, president of The ETF Store, a financial adviser, Bitcoin has been the undisputed star of the exchange-traded fund (ETF) scene in 2024, accounting for six of the top ten most successful launches.

Institutional Investors Back Bitcoin Ahead of U.S. Election

In the run-up to the November US presidential election, institutional investors like Paul Tudor Jones, Bernstein, and JP Morgan are becoming more and more positive about Bitcoin.

In a research published on October 3rd, JPMorgan stated that investors are opting for gold and Bitcoin as part of a "debasement trade" in anticipation of a "catastrophic scenario" due to increasing global tensions.

The research, provided with Cointelegraph by JPMorgan, states that "[R]ising geopolitical tensions and the coming [United States] election are likely to reinforce the ‘debasement trade’ thus favoring both gold and Bitcoin."

Debasement Trade Drives Bitcoin and Gold Demand

"Structurally higher geopolitical uncertainty since 2022, to persistent high uncertainty about the longer-term inflation backdrop, to concerns about […] persistently high government deficits across major economies," JPMorgan said, referring to the so-called debasement trade as an increase in gold demand.

"All roads lead to inflation" following the US presidential election, according to Jones, who created the hedge fund Tudor Investment Corporation, who expressed his desire for Bitcoin and other commodities on October 22.

"I probably have some basket of gold, Bitcoin, commodities and Nasdaq [technology stocks] and I would own zero fixed income," Jones stated on CNBC's Squawk Box.

Bitcoin Miners to Capitalize on AI Energy Demand

As the sector consolidates and capitalizes on energy demand from artificial intelligence, Bitcoin miners are expected to recover from a post-halving downturn in mid-2024, according to Bernstein.

"We expect Riot, ClearSpark and Marathon to consolidate the Bitcoin mining industry," Bernstein claimed.

AI-Powered Computation Boosts Mining Profits

The mining rewards for Bitcoin were cut in half in April, going from 6.25 BTC to 3.125 BTC each block.

At the same time, processing power driven by AI is experiencing a meteoric rise in demand.

Reportedly, mining business Luxor CEO Nick Hansen stated that, in comparison to Bitcoin (BTC) mining, miners may earn $2 to $3 per kwH of energy consumed from AI.

Core Scientific, Hut 8 (HUT), and Hive Digital Technologies (HIVE) are among the Bitcoin miners that are embracing AI as an additional source of revenue.