According to KULR Technology Group, a company listed on the New York Stock Exchange, it’s projected that the value of Bitcoin could potentially peak at $200,000 during the 2025 market cycle. This forecast is based on their decision to purchase millions of dollars worth of Bitcoin when its price dropped.
On January 6th, KULR Technology Group made a purchase of approximately 218 Bitcoins, which equates to over $21 million, at an average price of about $97,391 per Bitcoin, as stated in a release they shared with CryptoMoon.
Just a few hours prior, the $21 million deal was finalized, and interestingly enough, it happened just as Bitcoin surpassed the $100,000 level again for the first time since December 19. According to CryptoMoon Markets Pro’s data, this is a notable occurrence.
According to Michael Mo, CEO of KULR Technology, there’s a strong possibility that the price of Bitcoin could more than double from its present value, due to increasing global adoption.
This may set up Bitcoin for a cycle top of above $200,000 in 2025, Mo told CryptoMoon.
He stated that the primary driving factor could be countries and states deciding to hold a strategic Bitcoin reserve. Currently, nations such as the United States, Germany, Switzerland, among others, are contemplating this move.
A proposed bill in the U.S., known as the Bitcoin Act, backed by Senator Cynthia Lummis from Wyoming, suggests establishing a specialized Bitcoin reserve for the nation with the largest economy globally.
If the Bitcoin Act is passed by U.S. legislators as proposed, Bitcoin’s value could potentially reach or exceed $1 million, based on the prediction made by Adam Back, a key figure in the crypto world who co-founded Blockstream and invented Hashcash.
As an analyst, considering Bitcoin’s current market capitalization, a staggering influx of approximately $2 trillion in additional capital is required for its price to reach the $200,000 mark. This significant surge would propel Bitcoin past Apple’s current market capitalization of $3.7 trillion, making it the world’s second-largest asset by value, trailing only the mighty dollar or another global heavyweight.
Crypto regulations and Fed policy will drive Bitcoin price in 2025: Binance Research
The anticipation for stricter cryptocurrency rules and better monetary policies significantly contributed to Bitcoin’s surge to its record high of $108,300.
It appears that the fall of Bitcoin below $100,000 may have been triggered by the Federal Reserve’s announcement to provide fewer interest rate reductions in 2025, as suggested by a report published on January 6th by Binance.
“The rally faltered in late December when the Federal Reserve reduced its planned 2025 rate cuts from four to two, despite a modest 0.25% cut during the month, triggering a sharp market correction that wiped over US$0.5TB from the cryptocurrency market capitalization.”
According to data from CME Group’s FedWatch Tool, there is about a 9.1% chance that the Federal Reserve will lower interest rates by 0.25%, while the probability of keeping rates unchanged currently stands at approximately 90.9%.
According to Binance Research, whether Bitcoin can maintain its upward momentum beyond $100,000 hinges significantly on the development of future cryptocurrency regulations as reported by CryptoMoon.
“Sustaining these levels over the long term will depend on various factors, including the actual implementation of crypto regulations and the Federal Reserve’s policy path in 2025.”
Meanwhile, the new year is already bringing signs of growing Bitcoin adoption among institutions.
In a recent discussion, the Governor of the Czech National Bank, Aleš Michl, has been contemplating the inclusion of Bitcoin as part of a diversification plan for the nation’s foreign exchange reserves, according to a report by CryptoMoon dated January 7th.
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2025-01-07 17:33