Bernstein analyst Gautam Chhugani believes that Bitcoin (BTC-USD) and related crypto stocks are undervalued and primed for a major rally, as the market’s pessimism stems from past regulatory challenges. In fact, Chhugani has raised his Bitcoin price target from $150K to $200K by 2025 and expects it to reach $500K by 2029 and $1M by 2033. For reference, Bitcoin is currently trading just above $65K, which is down from its all-time high of over $73K in March.
Despite bearish claims that the spot Bitcoin ETF trade is over, Chhugani anticipates Bitcoin ETFs will soon gain approval at major financial institutions by Q3 or Q4. This approval is expected to drive significant inflows into Bitcoin ETFs, particularly as large advisers begin endorsing them and increasing allocations within existing portfolios.
It’s worth noting that, so far, Chhugani has enjoyed a 70% success rate on his crypto stock calls, with an average return of 52.5% per rating. Interestingly, he recently started coverage of MicroStrategy stock with a Buy rating and a $2,890 price target. Unsurprisingly, he pointed to Bitcoin’s potential of hitting his $200K price target as the catalyst, along with MicroStrategy’s leveraged Bitcoin investment, where it has used debt to purchase the cryptocurrency.
Is Bitcoin a Good Investment?
Using TipRanks’ technical analysis tool, the indicators seem to point to a neutral outlook for Bitcoin. Indeed, the summary section pictured below shows that nine indicators are Bullish, compared to two Neutral and 11 Bearish indicators.
