Alice Morgan Photo Illustration by Investopedia
What you need to know
- In 2025, Bitwise, Standard Chartered and VanEck analysts expect bitcoin to reach between $180,000 and $200,000 in value.
- Analysts say that the flow of funds into bitcoin spot ETFs could be on par with 2024’s numbers.
- The price of bitcoin could rise if the U.S. adopts a Bitcoin strategic reserve.
Bitcoin (BTCUSD) has had a strong 2024, climbing past many price milestones—including $100,000—as a confluence of factors drove up investor confidence in the leading cryptocurrency.
In the run-up to this year, demand was fueled by spot Bitcoin exchange-traded Funds (ETFs), which began trading in early January. A halving of supply then followed, followed by hope that crypto-friendly policy would be implemented after Donald Trump’s reelection.
While the Federal Reserve's latest projections for cutting interest rates next year shook the crypto markets, some of the aforementioned reasons for optimism remain on the table—though if the Fed slows its rate-cutting campaign, experts say, Treasury yields could remain elevated, shifting investors away from bitcoin and other risk assets.
That's why some analysts are still bullish on bitcoin—but warn of volatility ahead.
Bitcoin has more potential, say analysts
Prior to the Fed meeting shock, 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 Sen. Cynthia Lummis' plan of buying 1 million bitcoin for a "strategic bitcoin reserve."
Trump, the president-elect, has also endorsed the idea. But it’s unclear what amount of bitcoin the government can hold. Or if they would just add more to their existing bitcoin holdings.
Standard Chartered analysts share Bitwise’s price expectations for bitcoin and project that spot bitcoin ETF inflows in 2025 are likely to remain at the same levels as this year. The funds need to buy bitcoins as they receive money from investors. According to Farside Investors, the bitcoin ETFs saw net inflows exceeding $35 billion so far this year.
VanEck analysts are bullish too, though less confidently. Analysts expect Bitcoin prices to rise as high as $180,000 with volatility in 2025.The price of bitcoin is expected to fall by 30%, after reaching new heights at the beginning of the year. This will be followed by a period for consolidation in the summer months and then a spike towards the end.
And Gene Munster's Deepwater Asset Management earlier this month predicted bitcoin hitting $150,000 in 2025, saying that "ripe market and regulatory conditions will send Bitcoin to new highs in 2025, with likely pullbacks occurring before its peak."
Bitcoin is currently trading at $96,000. The total cryptocurrency market capitalization is estimated to be around $3.3 trillion.
The article was published for the first time on December 23, 2024. This article was updated in order to include updated pricing information as well as the Deepwater forecast.
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