Strategy's Bitcoin Bet: A Million by 2033?

In the ever-evolving world of cryptocurrency, one company, Strategy, is making waves with its ambitious plans to double its Bitcoin holdings to 1 million by 2033. According to Bernstein, this bold move is not just a gamble but a calculated strategy backed by a confluence of factors that could propel Bitcoin to unprecedented heights. Let's dive into the details and see if this bet is as solid as it seems.



Bitcoin's price trajectory since the U.S. 2024 election has been nothing short of spectacular. Powering through the much-anticipated $100,000 mark on December 4, 2024, and various other times since, Bitcoin's new all-time high (ATH) stands at $109,079.00, marking a +29.05% increase in the last 12 months. This meteoric rise is driven by factors such as the Bitcoin halving, massive inflows into Bitcoin ETFs, which were approved on January 10, 2024, the anticipation of a more crypto-friendly U.S. administration, and increasing institutional interest.

Bernstein's forecast for Bitcoin's price trajectory is equally bullish, predicting cyclical peaks of $200,000 by the end of 2025 and $1 million by the end of 2033. This forecast aligns with other expert predictions but also diverges in certain aspects. For instance, Bitomat’s recent market report projects that Bitcoin could reach between $130,000 and $220,000 by 2025, which is slightly more conservative than Bernstein's prediction of $200,000. Similarly, some analysts forecast Bitcoin prices ranging from US$180,000 to US$290,000 by 2030, which is lower than Bernstein's projection of $784,575.66 for the same year.

The underlying assumptions supporting Bernstein's projections include several key factors:

1. Bitcoin Halving: Bernstein expects the 2024 Bitcoin halving to continue taking effect, reducing the supply of new Bitcoin entering the market. Historically, halvings have led to significant price increases due to the reduced supply, assuming demand remains constant or increases.

2. Institutional Adoption: Bernstein anticipates that institutional adoption will continue to grow, with more pension funds including Bitcoin and further integration with financial systems. This increased institutional interest is expected to drive up the price of Bitcoin.

3. Regulatory Environment: A favorable regulatory environment, including the approval of Bitcoin ETFs and clearer global regulations, is expected to provide clarity and legitimacy to Bitcoin, fostering broader adoption.

4. Technological Advancements: Bernstein assumes that technological advancements, such as the adoption of Layer 2 solutions like the Lightning Network, will enhance Bitcoin’s scalability and security, making it more attractive for daily transactions and merchant adoption.

5. Macroeconomic Trends: Favorable macroeconomic trends, including a pro-crypto U.S. administration and increasing corporate investments, are expected to support Bitcoin's price trajectory.

6. Scarcity Model: The "stock-to-flow" model suggests that Bitcoin’s price could increase substantially post-halving events due to its scarcity. Bernstein's projections are based on the assumption that demand for Bitcoin will at least remain stable, if not grow.

These assumptions are supported by recent market trends and historical data. For example, Bitcoin's price has been on a powerful upward trajectory since the U.S. 2024 election, powering through the much-anticipated $100,000 mark on December 4, 2024, and various other times since. This is due to factors like the Bitcoin halving, massive inflows into Bitcoin ETFs, which were approved on January 10, 2024, the anticipation of a more crypto-friendly U.S. administration, and increasing institutional interest. As of March 21, 2025, Bitcoin is trading at $84,220.76 with a very positive outlook.



However, it's not all smooth sailing for Bitcoin. The cryptocurrency market is notoriously volatile, and Bitcoin is no exception. The Relative Strength Index (RSI) at 76 points to overbought conditions; oscillators like Stochastic %K at 88, and Commodity channel Index at 163 signal potential selling pressure. Momentum (30,936) also leans bearish. This indicates potential slowing upward movement. However, the MACD at 15,460 confirms bullish momentum. Similarly, Moving Averages dominate bullishly: Short-term EMAs and smas, like the EMA-10 at 76,932, suggest strong upward trends, with all averages above key support levels (SMA-30 at 45,568). The Hull Moving Average at 100,746 also aligns with this bullish trajectory.

Pivot levels show immediate resistance at 121,662 (R1), with critical support near 80,083 (P). Breaches of these levels may trigger sharper moves. The average directional index at 38 implies weak trend strength, so watch for reversals. Monitor overbought indicators and key resistance at R1 to align your trades with momentum shifts.

In conclusion, Bernstein's prediction that Strategy could hold up to 1 million Bitcoin by 2033 is driven by institutional adoption, a favorable regulatory environment, the Bitcoin halving, market trends, and technological advancements. These factors align with current market trends and historical data, providing a strong basis for Bernstein's prediction. However, investors should remain cautious and stay informed about the ever-changing landscape of the cryptocurrency market.

Ask Aime: Is Strategy's plan to double its Bitcoin holdings by 2033 a sound investment strategy?