Financial firm TD Cowen has reiterated a bullish medium-term outlook for Bitcoin, projecting a price target of approximately $225,000 per coin by the end of fiscal 2027. In a research note dated February 24, 2026, the firm also sketched an aggressive "bull case" scenario that could drive Bitcoin to around $450,000. This projection hinges on two key interacting assumptions: a 100-fold increase in tokenized real-world assets over time and a 90% decline in the transaction velocity of those assets. TD Cowen emphasized that the $450,000 figure is an illustrative sensitivity analysis, not a base forecast, and cautioned that its models depend on market dynamics evolving as expected.
The firm's analysis identifies tokenization as a structural demand driver for Bitcoin, positing that if tokenized assets proliferate and their on-chain velocity slows, the implied value captured by the underlying settlement asset (Bitcoin) would rise significantly. TD Cowen also highlighted policy developments, specifically the potential passage of the CLARITY Act in 2026, as a critical catalyst that could bring regulatory clarity for staking, custody, and trading platforms, though it warned of political hurdles.
Separately, Elon Musk's advanced AI model, Grok 4.2 Heavy, has also issued a bullish Bitcoin prediction. According to reports, the AI model forecasts Bitcoin reaching $155,000 by the end of 2026 and peaking at $240,000 in 2027. Grok cites expansion in the money supply, increased liquidity, ETF inflows, and regulatory clarity as primary drivers for this anticipated rise.
These optimistic forecasts come amidst current market scrutiny. TD Cowen's note acknowledges a recent miss in its predictions; in mid-October 2025, with Bitcoin around $111,000, the firm projected a rise to $141,000 by December, but the cryptocurrency instead closed the year near $88,000. At the time of the reports, Bitcoin was trading around $65,422-$69,000, with analysts like Adam Lynch of the Schwab Financial Research Center noting the $65,000 level as a critical support and resistance zone that could dictate the near-term trend direction.
