According to Bernstein, as demand for ETFs soars, Bitcoin will reach $500,000 by the end of this decade.

A recent note from Bernstein predicts that by the end of the decade, the price of bitcoin will have skyrocketed to $500,000.

Bernstein analysts Gautam Chhugani and Mahika Sapra stated in an introduction note of MicroStrategy stock that bitcoin is expected to surge 659% from Friday afternoon levels and reach half a million dollars by 2029.

The demand for bitcoin ETFs, which have drawn tens of billions of dollars in assets since their inception earlier this year, is the reason behind the sharp price surge.

A fertile supply-and-demand dynamic should lead to more price increases for bitcoin as a result of the cryptocurrency’s ever-dwindling supply and soaring demand.

“This is led by unprecedented Bitcoin demand ($190Bn AUM in 2025E vs. $60Bn today) via ETFs run by the world’s leading asset managers, and Bitcoin supply being constrained,” Bernstein said.

Base case estimates for the price of bitcoin, according to Chhugani and Sapra, are $200,000 by 2025, $500,000 by 2029, and $1 million by 2033.

Prior to the robust ETF inflow, the researchers had predicted that bitcoin would hit a cycle high of $150,000 in 2025.

“This is led by unprecedented Bitcoin demand ($190Bn AUM in 2025E vs. $60Bn today) via ETFs run by the world’s leading asset managers, and Bitcoin supply being constrained,” Bernstein said.

MicroStrategy is rated “Outperform” by the firm, and its price objective of $2,890 indicates a 94% potential upside from the price on Friday afternoon.

Approximately $14.5 billion, or 1.1% of the whole bitcon supply, has been accumulated by MicroStrategy. In the meantime, MicroStrategy is valued $26 billion on the market.

In contrast to passive bitcoin ETFs, Bernstein contends that MicroStrategy gives investors a “active-leveraged” strategy, which justifies the company’s higher price.