Analysts predict Bitcoin will reach $150,000 by 2025, meaning Microstrategy shares will rise
Benchmark Company analyst Mark Plamer expects Bitcoin price to reach $150,000 by the end of 2025.
Palmer's comments came via an April 8 investor note in which he raised his price target for MicroStrategy (MSTR) to $1,875, nearly doubling his previous target of $990.
Palmer's optimism about MSTR is based on the company's Bitcoin holdings. The analyst expects the flagship cryptocurrency to reach a price of “$150,000” by 2025. He noted that MicroStrategy's massive Bitcoin holdings will benefit greatly from the upcoming halving as the supply of Bitcoin will be reduced by half.
Bitcoin's $150,000 price target is also higher than Palmer's Feb. 27 prediction that the price would reach $125,000. Following this analysis, BTC rose by around 27%, leading to a higher price target from the analyst.
In a subsequent interview with Yahoo Finance, the benchmark analyst highlighted the historical impact of the halving event on BTC prices. He noted that Bitcoin halvings in 2012, 2016 and 2020 were followed by significant price increases due to the supply shock they caused.
He added that the upcoming halving could mimic a similar scenario. The impact could also be compounded by the demand shock analysts are creating from the spot Bitcoin ETF products. Palmer expects demand for these ETF products to continue to grow as more institutions enter the market.
Another factor that Plamer took into account in his MSTR stock target forecast is the company's tendency to strategically accumulate Bitcoin.
The company, led by Michael Saylor, has accumulated Bitcoin at an average price of $35,160. According to saylortracker, MicroStrategy holds 214,245 Bitcoins as of April 9th.
Palmer expects this trend to continue, noting that the company has increased its Bitcoin holdings for the 15th consecutive quarter. The analyst expects Saylor's company to hold approximately 298,246 Bitcoins by year-end 2025, a 40% increase from current holdings.
The company is expected to do this using funds from capital raises and excess cash from its enterprise software business.
Several analysts are touting the post-halving scenario as a bullish phase for Bitcoin. Palmer's views on Bitcoin were also shared by Skybridge Capital founder Anthony Scaramucci, who expects the flagship crypto to reach a value of at least $170,000 within the 18-month post-halving cycle.
Analysts at the crypto exchange Bitfinex also reported a price target for BTC between $150,000 and $169,000. However, analysts noted that this halving is different from the previous one as BTC had already reached an all-time high before the event.
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