Bitcoin (BTC) price dips in 2025 are expected to be short-lived due to significant institutional demand, according to a market report by Bitfinex analysts released on December 17. The analysts predict that Bitcoin could double in price by mid-2025, with their best-case scenario placing the cryptocurrency’s price as high as $200,000. This forecast comes as institutional adoption continues to play a major role in Bitcoin’s price trajectory.
Bitfinex analysts forecast that Bitcoin’s price could reach a minimum of $145,000 by mid-2025, potentially rising further depending on favorable market conditions. Despite expected price volatility in the first quarter of 2025, the analysts emphasize that Bitcoin’s overall price trend will likely remain bullish, driven by continued institutional inflows, especially into spot Bitcoin exchange-traded funds (ETFs).
Since their launch in January 2024, US-based spot Bitcoin ETFs have seen a significant inflow of approximately $36 billion, according to Farside Investors data. Bitcoin ETFs have quickly become one of the largest groups of Bitcoin holders, collectively holding over 1.13 million BTC. This growing institutional interest is expected to shield Bitcoin from deep corrections and support its long-term growth.
Currently trading at around $105,360, Bitcoin’s price is expected to continue its upward momentum in the coming years. Castle Island Ventures’ Nic Carter has even suggested that Bitcoin’s price could rise nearly ninefold in the long term, potentially reaching $900,000, aligning with Bitcoin’s goal of matching the market cap of gold.
"Long-term, I'm looking for Bitcoin to match the market cap of gold, which would price Bitcoin at 900 thousand dollars a coin." Castle Island Ventures Founding Partner @nic__carter speaks with @SonaliBasak and @timsteno on "Bloomberg Crypto" https://t.co/8DzdSFNOCi pic.twitter.com/SuH2ptsiW7
— Bloomberg TV (@BloombergTV) December 17, 2024
Further fueling optimism, Bitcoin’s price could see significant gains if it mirrors the 2021 cycle, which saw a 40% increase above its moving averages, potentially pushing Bitcoin to around $339,000. In a less likely scenario resembling the 2017 cycle, Bitcoin could peak around $290,000 by early 2026.
The ongoing speculation surrounding the creation of a US Bitcoin reserve under a potential Trump administration adds another layer of uncertainty and excitement to the Bitcoin market. If the US government follows through on plans to accumulate Bitcoin for a strategic reserve, it could significantly alter the market narrative, potentially eliminating the cyclical patterns that have historically defined Bitcoin’s price movements.
Also Read: U.S. Drafts Executive Order for Strategic Bitcoin Reserve Under Trump Administration
As Bitcoin continues to attract institutional investors and potentially government involvement, the outlook for 2025 remains overwhelmingly positive, with short-term corrections likely to be brief and limited in scope.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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