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Analysts from Bitwise, Standard Chartered, and VanEck see bitcoin rising to the $180,000 to $200,000 level in 2025.
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Flows to spot bitcoin ETFs in 2025 could keep up with the numbers from 2024, analysts say.
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Bitcoin prices could also see a boost if the US decides to adopt a bitcoin strategic reserve.
Bitcoin (BTCUSD) had a strong 2024, climbing past many price milestones – including $100,000 – as a confluence of factors increased investor confidence in the leading cryptocurrency.
It all started with a demand associated with the spot bitcoin exchange traded funds (ETFs) that began trading in January, followed by the excitement of halving that limited supply of new bitcoin and then the hope for crypto-supportive policies after the re-election of Donald Trump, apparently bolstered by a number of 'to post-election appointments.
Although the Federal Reserve's latest projections for cutting interest rates next year have shaken the crypto markets, some of the above reasons for optimism remain on the table – although if the Fed slows down its rate cutting campaign, experts say, Treasury yields could remain high, moving. investors away from bitcoin and other risky assets.
That's why some analysts remain bullish on bitcoin – but warn of volatility ahead.
Before the shock Fed meeting, digital asset manager Bitwise's predictions for 2025 pegged bitcoin rising above $200,000 for the first time. That number rises to $500,000 if the federal government adopts Senator Cynthia Lummis' plan to buy 1 million bitcoins for a “strategic bitcoin fund.”
President-elect Trump has also supported the idea bitcoin strategic reservebut there is little clarity on how much bitcoin the government could hold, whether it would add to its current holdings or what the purpose of such a reserve would be.
Standard Chartered analysts have a similar price expectation for bitcoin, and join Bitwise in projecting that inflows for spot bitcoin ETFs in 2025 will remain similar to the levels seen this year. These funds hold bitcoin as the underlying security and need to buy it as investors pour money into them. So far this year, bitcoin ETFs have seen net inflows of more than $36 billion, according to data from Farside Investors.
Analysts at VanEck are also bullish, but less so. They expect bitcoin prices to peak at $180,000 in 2025 with massive volatility: They see bitcoin prices falling by about a third (30%) after hitting new highs earlier in the year, followed by a period of consolidation during the summer before peak. towards the end of the year.