Investopedia / photo illustration by Alice Morgan / Getty Images
-
Analysts from Bitwise, Standard Chartered and VanEck see bitcoin rising to the $180,000 to $200,000 level by 2025.
-
Outflows into spot Bitcoin ETFs in 2025 could keep pace with 2024 figures, analysts say.
-
Bitcoin prices could also get a boost if the US decides to establish a strategic bitcoin reserve.
Bitcoin (BTCUSD) has had a strong 2024, surpassing many price milestones – including $100,000 – as a confluence of factors has boosted investor confidence in the leading cryptocurrency.
It all started with demand related to the spot bitcoin exchange-traded funds (ETFs) that started trading in January, followed by the excitement of a halving of that limited supply of new bitcoin and then the hope of crypto-supportive policies after Donald’s re-election. Trump, seemingly strengthened by several of his post-election appointments.
While the Federal Reserve’s latest predictions of a rate cut next year have shocked the crypto markets, some of the previously mentioned reasons for optimism remain on the table. But if the Fed slows its rate-cutting campaign, experts say, Treasury yields could remain high and shift. investors away from bitcoin and other risky assets.
That’s why some analysts remain bullish on bitcoin but warn about the coming volatility.
Before the Fed shock, digital asset manager Bitwise’s 2025 forecasts predicted bitcoin would rise above $200,000 for the first time. That number increases to $500,000 if the federal government adopts Senator Cynthia Lummis’ plan to purchase 1 million bitcoin for a “strategic bitcoin reserve.”
President-elect Trump has also supported the idea of ​​a strategic bitcoin reserve, but there is little clarity on how much bitcoin the government could hold, whether it would add to its existing holdings or what the purpose of such a reserve would be.
Standard Chartered analysts have a similar price outlook for bitcoin and join Bitwise in predicting that inflows for spot bitcoin ETFs in 2025 will remain similar to this year’s levels. These funds hold Bitcoin as the underlying asset and must buy it when investors put money into it. According to data from Farside Investors, bitcoin ETFs have seen net inflows of more than $36 billion so far this year.
Analysts are that VanEck is also bullish, but to a lesser extent. They expect Bitcoin prices to reach a high of $180,000 in 2025 with plenty of volatility: They see Bitcoin prices falling by about a third (30%) after hitting new highs earlier this year, followed by a period of consolidation in the summer before a peak. towards the end of the year.
