The price of Bitcoin might have taken a hit in the last couple days, but analysts at Bernstein are still convinced that the leading cryptocurrency has a lot of room to grow in the next year or so.

In a Wednesday report from the global investment firm, analysts Gautam Chhugani, Mahika Sapra, and Sanskar Chindalia wrote that they believe the biggest digital coin will hit $200,000 by the end of 2025. 

And that’s being "conservative," they said.

“With accelerating institutional adoption, we expect Bitcoin to triple from here to attain a cycle-high price of $200,000 by 2025 end,” the report read.

Bitcoin is now trading for just under $65,750, dropping by nearly 3% in a seven-day period. At the weekend, it was priced above $69,000 for the first time in nearly three months. The asset hit an all-time high price of $73,737 in March.

Bernstein analysts had previously predicted that Bitcoin could reach $150,000 in 2025 due to the huge demand for newly approved spot Bitcoin exchange-traded funds (ETFs) in the U.S. They continued to argue in Wednesday’s report that demand for these products will push the asset higher.

The ETFs—which trade on stock exchanges and allow investors to buy the digital asset through their brokerage accounts—have been hugely successful and allowed institutions such as Morgan Stanley to safely get exposure to Bitcoin. 

Last week, the funds—managed by Wall Street titans such as BlackRock and Fidelity—topped $20 billion in total inflows to date, despite only being approved in January.

The report added that American Bitcoin mining companies and software firm MicroStrategy, which in 2020 added the cryptocurrency and now securitizes Bitcoin, would continue to rally. Such investments are used by investors to get exposure to the crypto world without owning Bitcoin. MicroStrategy is the largest corporate treasury reserve holder of Bitcoin in the world, with over $16 billion worth of BTC.

Edited by Andrew Hayward