Bitcoin’s Path to $200K: Institutional Adoption and Robust Network Fundamentals Set the Stage for Historic BTC Rally

• Bitcoin price has several projections to chart a rally above $200,000 in the long term.
• Network fundamentals and institutional adoption might help accelerate this projection.

The price of Bitcoin (BTC) showed a slight uptick in the daily chart, indicating a potential recovery. Amid this development and ongoing market volatility, Bernstein Research released a recent report predicting a bullish rally for BTC.

Bernstein’s 2025 Bitcoin Bullish Prediction

In its report, Bernstein claims Bitcoin could reach $200,000 by the end of 2025. Bernstein cited the increase in institutional adoption and strong network fundamentals as critical factors propelling this bold Bitcoin price prediction. 

Bernstein noted in the 160-page “Black Book” report that institutional investors are rapidly reshaping the Bitcoin network by increasing adoption. Notably, ten global asset managers now control nearly $60 billion in regulated Exchange-Traded Funds (ETFs), a huge increase from the $12 billion recorded in September 2022. Accordingly, Bernstein expects Wall Street to replace Satoshi as the top Bitcoin holder by the end of 2024.

This year’s ETF landscape demonstrates strong institutional enthusiasm. As CNF mentioned, Bitcoin-related products accounted for six of the top ten most successful ETFs launched in 2024. Although recent data shows a temporary pullback, with $79.1 million in outflows on October 22, total assets under management have topped $65 billion.

Notably, leading asset manager BlackRock is a huge contributor to the rising institutional interest in Bitcoin. As CNF reported, BlackRock recently increased its Bitcoin stake, purchasing $1 billion via its iShares Bitcoin Trust. BlackRock’s fund currently holds about $24 billion BTC, accounting for approximately 1.76% of the coin’s total supply.

BlackRock CEO Larry Fink believes Bitcoin now rivals Gold as a distinct asset class. In an earlier CNF post, Fink argued that the upcoming US Presidential elections have no impact on Bitcoin’s price. 

Meanwhile, JPMorgan noted that investors are turning to gold and BTC in a “debasement trade.” The bank shared this update as investors brace for probable “catastrophic scenarios” amidst escalating geopolitical tensions. 

Hedge fund veteran Paul Tudor Jones has endorsed this viewpoint, indicating he has long positions in Bitcoin and other commodities. 

Bitcoin’s Strong Network Fundamentals

Bitcoin’s current price movement indicates both strength and caution. As of this writing, BTC is trading at $66,937, up 0.73% in the past 24 hours.

Notably, BTC has formed a bearish engulfing pattern on the daily chart. Historically, this formation has a 60-70% success rate in predicting short-term reversals. Also, the futures market has seen Open Interest (OI) approach $40 billion, with prices testing $69,000.

Technical indicators show a likely retest of the $60,000 support level, with key resistance around $67,500 and $68,000. However, several elements indicate the market’s fundamental strength. These include a rising hashrate that reached record highs and increased active addresses since mid-September. 

Network fees have also increased, indicating substantial transaction activity. Furthermore, options traders show strong bullish sentiment, with Open Interest concentrating around $80,000 strike prices for November expiry.

Overall, the combination of institutional adoption and strengthening network fundamentals are anticipated to set Bitcoin on a historic bullish rally soon.