Debasement trade to take bitcoin to $300,000 in three years, Bernstein says
Bitcoin could soar as the debasement trade comes into focus again, according to Bernstein. That could also boost shares of Strategy.
TL;DR
- Bernstein predicts Bitcoin could reach $300,000 by 2029 and $150,000 by mid-2027.
- The 'debasement trade,' a hedge against a weaker U.S. dollar, is gaining traction due to concerns over national debt and inflation.
- U.S. federal debt has surpassed $40 trillion, and the Treasury Department increased debt buybacks, fueling concerns about dollar weakness.
- Bitcoin recently topped $80,000 for the first time since May, rising 21% over the past month.
- Strategy Inc., the largest corporate holder of Bitcoin (around 4%), could benefit from this strength, with Bernstein expecting its preferred stock to recover.
- Bernstein has an outperform rating on Strategy, despite lowering its 12-month price target, and most analysts covering Strategy rate it a buy or strong buy.