• Analysts at Bitwise, Standard Chartered and VanEck see bitcoin rising to the $180,000 to $200,000 level by 2025.

• Analysts say flows into spot bitcoin ETFs in 2025 could keep pace with 2024 numbers.

• Bitcoin prices could also see a rise if the US 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 the local bitcoin exchange traded funds (ETFs) that began trading in January, followed by the excitement of halving the limited supply of new bitcoins and then the hope of crypto-supportive policies following the re-election of Donald Trump, apparently bolstered by several of their post-election appointments.

Although the latest Federal Reserve projections to cut interest rates next year shook crypto markets, some of the aforementioned reasons for optimism remain on the table, although if the Fed slows its rate-cutting campaign, experts say, Treasury yields could remain high, changing. investors away from bitcoin and other risky assets.

That’s why some analysts remain bullish on bitcoin, but warn of volatility ahead.

Ahead of the Fed meeting shock, digital asset manager Bitwise’s predictions for 2025 pegged bitcoin at 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 reserve.”

President-elect Trump has also supported the idea of ​​one strategic bitcoin reservebut there is little clarity about how much bitcoin the government could hold, whether it would add to its existing holdings, or what the purpose of that reserve would be.

Analysts at Standard Chartered have a similar price expectation for bitcoin and align with Bitwise in projecting that spot bitcoin ETF inflows in 2025 will remain similar to the levels seen this year. These funds have bitcoin as an underlying security and must buy it as investors pour money into it. So far this year, bitcoin ETFs have seen net inflows of more than $36 billion, according to data from Farside Investors.

Analysts are VanEck also bullish, but less so. They expect bitcoin prices to peak at $180,000 in 2025 with high volatility: They see bitcoin prices falling by about a third (30%) after hitting new highs earlier this year, followed by a of consolidation during the summer before a peak. towards the end of the year.

The story continues