Bernstein: Bitcoin Bull Market Set for Next Surge as Positive Catalysts Align

Bitcoin’s bull market is gaining momentum, with a wave of positive catalysts poised to drive the next price surge, according to a recent Bernstein report.

Bitcoin’s Bull Market: What’s Driving the Next Wave?

Bernstein analysts believe the current bull market started in Q4 2023, fueled by the anticipation of spot Bitcoin ETF approvals in the U.S.. This led to Bitcoin’s rise from $25,000 to $46,000, culminating in the ETF launches on January 11, 2024.

Subsequent ETF inflows propelled Bitcoin to an all-time high of $74,000, followed by a brief consolidation phase. The next major push, according to analysts, came with Donald Trump’s pro-crypto presidential victory in November 2024. His administration’s pledge to make the U.S. a global crypto hub and establish a national Bitcoin reserve sent Bitcoin soaring to $109,000 on Inauguration Day.

Key Catalysts for the Next Bitcoin Surge

Bernstein’s Gautam Chhugani and his team highlight several upcoming triggers:

• U.S. Crypto Task Force: Led by David Sacks, focusing on launching a National Bitcoin Reserve.
• Sovereign Wealth Fund (SWF): Trump’s administration is considering investing in strategic U.S. crypto companies as part of a new SWF.
• Bitcoin Reserve Funding Options: Potential sources include:
  • Federal Reserve or Treasury funding (requiring legislative approval).
  • Debt issuance or partial gold reserve liquidation.
  • $20 billion worth of seized Bitcoin held by the U.S. government.

Chhugani suggests this could spark a global race among sovereign nations to secure Bitcoin holdings.

Institutional Accumulation on the Rise

Additional bullish indicators include recent 13F filings with the SEC, revealing large institutional investments in Bitcoin ETFs:

• Abu Dhabi’s sovereign wealth fund, Mubadala, invested $437 million in spot Bitcoin ETFs.
• Goldman Sachs, Barclays, and Paul Tudor Jones’ investment firm all increased their Bitcoin holdings.

With institutional demand soaring, regulatory shifts in favor of crypto adoption, and a potential U.S. sovereign Bitcoin reserve, Bernstein sees a strong setup for Bitcoin’s next leg up in its ongoing bull cycle.