Where Analysts Think Bitcoin is Headed in 2025 | Global News Avenue

Bitcoin (Bitcoin USD) had a strong year in 2024, surpassing numerous price milestones (including $100,000) as a combination of factors boosted investor confidence in the leading cryptocurrency.

It all starts with the needs related to Spot Bitcoin ETFs (ETF) began trading in January, followed by excitement over the halving of the limited supply of new Bitcoins and then hopes for crypto-backed policies after Donald Trump’s re-election, which seemed to be affected by several of his post-election strengthened by appointment.

While the latest predictions of a rate cut by the Federal Reserve next year have rocked the cryptocurrency market, some of the above reasons for optimism remain — although experts say that could change if the Fed slows down the pace of rate cuts and Treasury yields could remain high. Investors are staying away from Bitcoin and other risky assets.

That’s why some analysts remain bullish on Bitcoin but warn of future volatility.

Analysts believe Bitcoin has more room to rise

Ahead of the Fed meeting’s shock, digital asset management firm Bitwise’s prediction for Bitcoin in 2025 topped $200,000 for the first time. That number would rise to $500,000 if the federal government adopts Senator Cynthia Lummis’ plan to purchase 1 million bitcoins as a “strategic bitcoin reserve.”

President-elect Trump also supports the idea Bitcoin strategic reserveBut it remains unclear how much Bitcoin the government can hold, whether it will increase its existing holdings, and what the purpose of such reserves would be.

Standard Chartered analysts have similar price expectations for Bitcoin and agree with Bitwise in predicting that inflows into spot Bitcoin ETFs in 2025 will remain at similar levels to this year. These funds use Bitcoin as the underlying security and are required to purchase Bitcoin when investors inject money into them. Net inflows into Bitcoin ETFs have exceeded $36 billion so far this year, according to Farside Investors.

Analysts at VanEck are also optimistic, but to a lesser extent. They predict Bitcoin price will reach highs of $180,000 in 2025, with wild swings: They believe Bitcoin prices fell by about a third (30%) after hitting new highs earlier this year, followed by a period of consolidation over the summer before peaking at the end of the year.

Currently, Bitcoin is trading at approximately $95,000, and the total cryptocurrency market capitalization is estimated to be approximately $3.26 trillion.