Bitcoin Price Hits $85K, Sets New ATH

As of November 11, the Bitcoin (BTC) price has reached an all-time high of $85,000. This has become a significant movement for the cryptocurrency. With this movement, BTC has entered a “price discovery” phase, which is pretty uncharted in its future trajectory.

According to analysts, if Bitcoin continues to respect the demand zone and avoids a breakdown from the double-top pattern, a strong rally may be experienced.

Bitcoin Price Soars to New Highs: Bernstein Predicts $200K Target

Bitcoin is on an unprecedented tear as the digital currency has reached new all-time high of $85K.

The record-reaching is happening already for a few days following the election victory of Donald Trump and the 25 basis point rate cut by the Federal Reserve.

This political and economic turn has re-awakened investor interest in BTC, driving the price into uncharted territory. It came after a brave recommendation from Bernstein and Co., one of the most prominent asset managers overseeing $725 billion in assets, to increase exposure to Bitcoin and other cryptocurrencies as inflation rises and institutional interest grows.

JUST IN: $82,000 #BITCOIN NEW ATH pic.twitter.com/o56YjFrT0i

— Bitcoin Magazine (@BitcoinMagazine) November 11, 2024

Bernstein analysts believe Bitcoin will thrive as a hedge-asset or “digital gold” during economic turmoil. They estimate crypto ETF assets could rise from $60 billion to $190 billion by 2025, boosting demand and liquidity.

Bitcoin, supported by growing institutional demand and limited supply, could reach $200,000 by 2025. Spot Bitcoin ETFs will also drive growth by attracting hesitant institutional investors.

Looking longer term, Bernstein projects Bitcoin could reach $1 million by 2033, driven by its role as a hedge. The market’s development, with major players like BlackRock and Fidelity entering, signals growing adoption and legitimacy for digital assets.

Bitcoin’s Scarcity and Growing Demand Drive Up Prices

The mechanics of Bitcoin supply, including cutting events that reduce the rate at which new Bitcoins are created, are supposed to put upward pressure on the price. Recently, halving reduced the daily supply from 900 BTC to 450 BTC, which, according to historical studies, has triggered an astronomical price boost.

Large investors such as MicroStrategy, holding about 1.1% of the total supply, are all in and buying Bitcoin through convertible debt, thus minimizing liquidation risks and increasing corporate confidence in the long-term value of Bitcoin. Combined with the buoyancy in institutional demand and desirable macroeconomic conditions, Bernstein’s predictions are upbeat on Bitcoin.

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