Analysts at Bernstein have issued a forecast for Bitcoin, predicting that the cryptocurrency will reach $200,000 by the end of 2025.

The firm's digital assets lead, Gautam Chhugani, characterized this prediction as "conservative" in a message to clients, emphasizing the asset's limited supply amid rising U.S. debt levels, which currently stand at approximately $35 trillion.

Chhugani's remarks are part of Bernstein's newly released "Bitcoin Blackbook," aimed at providing institutional investors with a comprehensive understanding of Bitcoin.

He pointed out that in a financial landscape marked by inflation concerns and record national debt, Bitcoin serves as a compelling alternative to traditional assets like gold.

For investors hesitant to invest directly in Bitcoin, Bernstein suggests considering shares in MicroStrategy and Robinhood, which offer indirect exposure to the cryptocurrency market.

Additionally, U.S.-listed companies such as Riot Platforms and CleanSpark are highlighted for their roles in Bitcoin mining, leveraging significant power resources for operations.

Core Scientific, which also operates in this space, has been noted for its dual focus on Bitcoin mining and AI hosting services.

Currently, Bitcoin is trading at approximately $66,393, reflecting a 10% decline from its peak of nearly $74,000 recorded in March. Despite this, the cryptocurrency has seen a year-to-date increase of 57%.

Bernstein analysts noted that Core Scientific is undervalued following a recent $2 billion extension to its hosting agreement with AI company CoreWeave.

This extension increases their total hosting capacity to around 500 megawatts, with an estimated contract value of $8.7 billion over the next 12 years. The analysts have rated Core Scientific as "outperform," setting a price target of $17.