Bitcoin May Surge To $200,000 By Mid-2025 Amid ‘Mild’ Price Pullbacks: Report
in a Report Analysts at cryptocurrency exchange Bitfinex said in an article published on December 17 that increasing institutional adoption of Bitcoin (BTC), coupled with bullish technical indicators, could lead to the leading cryptocurrency by mid-2025. The price could be as high as $200,000. The report also predicts that any price adjustments in 2025 are likely to “remain modest.”
Bitcoin correction will be mild in 2025
Earlier this month, Bitcoin broke through the psychologically important $100,000 price level, pushing its total market capitalization to just over $2 trillion at the time of writing. However, BTC still has huge growth potential by 2025, according to the latest version of the Bitfinex Alpha report.
Related reading
The report highlights a number of technical indicators, including Market Cap to Realized Value (MVRV), Net Unrealized Profit and Loss (NUPL), and the Bull and Bear Cycle indicator, which together suggest the market remains bullish and is far from its euphoric peaks.
Bitfinex analysts say that while diminishing returns may curb Bitcoin’s extraordinary growth in previous cycles, the cryptocurrency could still reach $200,000 under “favorable conditions.” The report states:
We believe any correction in 2025 will remain modest due to institutional inflows. Historically, the years following halvings have seen the strongest rallies. By mid-2025, the minimum price is expected to be $145,000, which could reach $200,000 under favorable conditions.
In fact, institutional inflows into Bitcoin via exchange-traded funds (ETFs) have shown a steady upward trend, especially after Donald Trump won the November presidential election. the latest one analyze It was revealed that U.S. spot ETFs now hold more BTC than the wallet of Satoshi Nakamoto, the anonymous founder of Bitcoin.
While the report predicts a bullish scenario in the long term, it warns that the first quarter of 2025 could see some price volatility. However, these pullbacks are expected to be mild and short-lived. The report also noted that Bitcoin’s post-halving price corrections have become smaller in size with each cycle:
In previous cycles, once Bitcoin entered the price discovery phase after the halving, corrections before mean reversion to a new ATH were relatively limited. The maximum correction for the 2017 cycle was 33.2%, while the correction for the 2020 cycle was slightly smaller at 27.1%.
Strategic reserves could extend Bitcoin’s gains
A unique factor in this Bitcoin cycle is the speculation surrounding the possible establishment of a strategic reserve of Bitcoin in the United States. Such reserves could push Bitcoin prices into the seven-digit range, according to Blockstream CEO Adam Back.
Related reading
Matt Hougan, chief investment officer of asset management company Bitwise, recently said famous The creation of a Bitcoin strategic reserve could push the price of the asset to $500,000. expert believe If the U.S. builds Bitcoin reserves, other countries could follow suit, creating a domino effect that could lead to significant price increases.
In related news, Satoshi Hamada, member of the Japanese Diet floating Japan’s idea to create its own strategic Bitcoin reserve. As of press time, BTC was trading at $103,953, down 3.7% in the past 24 hours.
Featured image from Unsplash, chart from TradingView.com
