Bitcoin may hit $200K by mid-2025 as price drops ‘will remain mild,’ says Bitfinex

As a seasoned analyst with over two decades of experience in the financial markets, I’ve seen my fair share of bull and bear runs. However, the predictions surrounding Bitcoin in 2025 are nothing short of intriguing. Having closely followed the crypto space since its inception, I must admit that the potential growth trajectory is truly remarkable.

2025 is expected to see brief drops in Bitcoin prices according to Bitfinex analysts, who foresee a positive outlook driven by robust institutional interest. They suggest that under optimal conditions, the value of Bitcoin could potentially double by June 2025.

According to the analysis of Bitfinex experts, published on December 17, their lowest projected price for Bitcoin by mid-2025 is around $145,000. This estimate could potentially rise to $200,000 if the market conditions turn favorable.

Bitcoin volatility expected in first quarter

As an analyst, I anticipate that any corrections in the year 2025 will be moderate, primarily due to the continuous influx of institutional investments. We acknowledge that Bitcoin volatility might be prevalent during the first quarter of 2025; however, the broader outlook indicates sustained price growth. This optimistic trend is underpinned by the persistent investment into spot Bitcoin exchange-traded funds (ETFs) and a rising global and institutional adoption of Bitcoin.

Approximately $36 billion has been invested in Bitcoin ETFs located within the U.S. ever since their launch in January, as indicated by data from Farside Investors.

Analysts noted that Bitcoin Exchange-Traded Funds (ETFs) collectively hold more than 1.13 million Bitcoins, making them a significant group of Bitcoin owners.

As of its release, Bitcoin was being exchanged for approximately $105,360. According to Castle Island Ventures’ partner Nic Carter, this value might potentially increase by almost nine times in the long run.

Speaking long-term, I anticipate that Bitcoin’s market capitalization could align with that of gold, which would place its value at approximately $900,000 per coin, as I shared during my interview on Bloomberg Television on December 17th.

On December 16th, the creator of Bitcoin, Andy Edstrom, expressed that it’s becoming challenging for him to adapt to the notion that a 1% price fluctuation in Bitcoin equates to $1,000.

According to Bitfinex’s analysts, if Bitcoin follows the pattern of its 2021 price movement and rises by approximately 40% beyond its average value, it might theoretically hit a peak of around $339,000.

If the 2017 trend of decreasing gains were to reoccur, there’s a possibility that Bitcoin might reach approximately $290,000 by early 2026 in a less common situation.

US Bitcoin reserve may change the narrative

Currently, there’s a lot of talk within the cryptocurrency sector about the potential for the new Trump administration to establish a strategic Bitcoin reserve. This discussion has many believing that the market storyline could venture into previously unexplored realms.

If a nation decides to establish a strategic reserve for Bitcoin, the traditional 4-year cycles we’ve seen could disappear, as suggested by cryptocurrency analyst Tyler Durden in his recent blog post.

Following Donald Trump’s victory in the November 5th election, Senator Cynthia Lummis, a supporter of both Trump and cryptocurrency, announced her intention to propose legislation that would enable the U.S. government to acquire Bitcoin and hold it for at least two decades.

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2024-12-18 06:15