Investing.com -- The next phase of the Bitcoin bull market is taking shape, driven by institutional adoption, sovereign interest, and favourable regulatory developments, Bernstein said.
Bitcoin’s recent surge began with the approval and success of spot Bitcoin ETFs, followed by a political boost from the Trump administration’s pro-crypto stance. With ETF inflows exceeding $36 billion in the first year and Bitcoin reaching an all-time high of $106,000, Bernstein sees further upside ahead.
Potential establishment of a U.S. national Bitcoin reserve could drive the Bitcoin bull market, with sovereign wealth funds and institutional investors accelerating their Bitcoin exposure. Abu Dhabi’s Mubadala fund recently disclosed a $437 million Bitcoin ETF investment, while MicroStrategy (NASDAQ:MSTR) has continued to expand its holdings, now controlling over 478,000 Bitcoin.
With Bitcoin’s market capitalization at $2 trillion, just a fraction of gold’s $18 trillion, the digital asset is emerging as a key competitor to gold. Bernstein projects 2025 ETF inflows to reach $60 billion and sees increasing adoption by banks and corporates further fueling Bitcoin’s rise.
“Investors should position themselves for the next leg of the bull market across Bitcoin & Bitcoin linked equities.”