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Analysts at Bitwise, Standard Chartered and VanEck predict that Bitcoin will rise to the level of between $180,000 and $200,000 in 2025.
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Flows into spot bitcoin ETFs in 2025 could keep pace with 2024 numbers, analysts say.
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Bitcoin prices could also see a rise if the United States decides to adopt a strategic Bitcoin reserve.
Bitcoin (BTCUSD) has had a strong 2024, surpassing many price milestones, including $100,000, as a confluence of factors boosted investor confidence in the leading cryptocurrency.
It all started with the demand associated with spot bitcoin exchange-traded funds (ETFs) that began trading in January, followed by the excitement of halving that limited supply of new bitcoins and then the hope of policies to support cryptocurrencies after Donald’s re-election. Trump, apparently bolstered by several of his post-election appointments.
While the Federal Reserve’s latest projections to cut interest rates next year shook crypto markets, some of the aforementioned reasons for optimism remain on the table, although if the Federal Reserve slows down its rate-cutting campaign, Treasury yields could remain elevated, experts say, shifting investors away from bitcoin and other risk assets.
That’s why some analysts remain bullish on bitcoin but warn of the volatility ahead.
Before the shock of the Fed meeting, digital asset manager Bitwise’s predictions for 2025 had Bitcoin surpassing $200,000 for the first time. That figure increases to $500,000 if the federal government adopts Senator Cynthia Lummis’ plan to purchase 1 million bitcoins 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 many bitcoins the government could hold, whether they would be added to its existing holdings, or what the purpose of such a reserve would be.
Analysts at Standard Chartered have a similar price expectation for bitcoin and align with Bitwise in projecting that bitcoin spot ETF inflows in 2025 will remain similar to levels seen this year. These funds have bitcoin as an underlying security and need to buy it as investors invest money in them. So far this year, bitcoin ETFs have seen net inflows of more than $36 billion, according to data from Farside Investors.
VanEck analysts are also optimistic, but not as optimistic. They expect bitcoin prices to peak at $180,000 in 2025 with volatility aplenty: 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 a peak. towards the end of the year.