Bitcoin (BTC) has had one of its best-performing years in 2024, finally reaching the coveted six-figure valuation with a segment of the market anticipating continued growth in the coming months.
The asset’s rise has been driven by multiple factors, with the approval of the spot exchange-traded fund (ETF) in the United States serving as a major catalyst early in the year.
Most recently, Bitcoin surged to a record high of $108,000, fueled by post-election optimism following Donald Trump’s victory. His stance on pro-cryptocurrency policies has led many to expect further market gains.
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As of press time, Bitcoin is trading at $93,450, reflecting a 121% rally year-to-date.
Looking ahead to the new year, several key factors could support Bitcoin’s upward momentum. A significant one will be watching whether Trump follows through on his promises to the cryptocurrency space.
The president-elect has supported the idea of a Bitcoin reserve, though details about the government’s potential holdings and the reserve’s purpose remain unclear. Any new developments in this area will likely play a pivotal role in shaping Bitcoin’s price movements.
Bitcoin price prediction for 2025
With this in mind, several analysts and institutions have offered projections for the maiden cryptocurrency price 2025.
Top on the list is banking giant Standard Chartered, which projects Bitcoin is likely to trade at $200,000 by the end of 2025, a price target that would put the asset’s market cap near the $4 trillion mark. Geoff Kendrick, the bank’s Global Head of Digital Assets Research, said institutional investors would drive the $200,000 valuation, with inflows maintaining or surpassing 2024’s pace.
Analysts at VanEck also have a cautiously optimistic outlook for Bitcoin in 2025, projecting a record high of $180,000. However, they anticipate significant volatility throughout the year.
In a December 13 report, analysts Matthew Sigel and Patrick Bush stated that Bitcoin will likely experience a 30% price drop after reaching new highs early in the year. Following this, the market will likely undergo a period of consolidation in the summer before a final price surge toward the end of 2025.
“We believe the crypto bull market will persist through 2025, reaching its first peak in the first quarter. At the cycle’s apex, we project Bitcoin to be valued at around $180,000,” the analysts noted.
At the same time, Deepwater Asset Management expert Gene Munster also foresees Bitcoin surging past the $100,000 mark. The analyst stated that “ripe market and regulatory conditions will send Bitcoin to new highs in 2025, with likely pullbacks occurring before its peak.”
Impact of Bitcoin reserve on BTC price
On the other hand, some experts have shared the possible impact of a Bitcoin reserve on the cryptocurrency’s price in 2025.
For instance, Jeff Park, Head of Alpha Strategies at Bitwise Asset Management, has forecasted a potential Bitcoin price of $1 million in 2025. However, he places the chances of this milestone at under 10%. Park attributes this slim probability to the possibility of the U.S. government establishing a strategic Bitcoin reserve, which he believes is a key factor for such a dramatic price surge.
Elsewhere, Bitcoin’s price could soar to $500,000 if the national reserve is established, according to Matt Hougan, Chief Investment Officer of Bitwise Asset Management. Hougan also forecasted that Bitcoin could reach $200,000 in 2025, driven by growing demand for the digital asset.
“If we do get a Bitcoin strategic reserve where the government is buying Bitcoin … $200,000 bitcoin is going to be looking quaint. You’re going to be looking at $300,000, $400,000, $500,000 bitcoin. It’s just too big a story, because governments all around the world are going to have to do it,” Hougan said.
On the dissenting part, Galaxy CEO Mike Novogratz is skeptical that a Bitcoin reserve will happen soon. However, if the US government moves toward mainstream cryptocurrency adoption, he expects Bitcoin’s price to surge to $500,000, with other countries likely following suit.
While price projections vary, ranging from cautious optimism to bold forecasts, institutional interest and regulatory developments, such as the creation of a Bitcoin reserve, are likely to influence the market.
Featured image via Shutterstock
