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Analysts from Bitwise, Standard Chartered, and VanEck see bitcoin rising to the $180,000 to $200,000 level in 2025.
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Flows into spot bitcoin ETFs in 2025 could keep pace with the numbers from 2024, analysts say.
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Bitcoin prices could also see a boost if the U.S. decides to adopt a bitcoin strategic reserve.
Bitcoin (BTCUSD) has had a strong 2024, climbing past many price milestones—including $100,000—as a confluence of factors drove up investor confidence in the leading cryptocurrency.
It all started with demand associated with the spot bitcoin exchange-traded funds (ETFs) that began trading in January, followed by the excitement of a halving that limited supply of new bitcoin and then the hope for crypto-supportive policies after the reelection of Donald Trump, seemingly reinforced by several of his post-election appointments.
While the Federal Reserve’s latest projections for cutting interest rates next year shook the crypto markets, some of the aforementioned reasons for optimism remain on the table—though if the Fed slows its rate-cutting campaign, experts say, Treasury yields could remain elevated, shifting investors away from bitcoin and other risk assets.
That’s why some analysts remain bullish on bitcoin—but warn of volatility ahead.
Prior to the Fed meeting shock, digital asset manager Bitwise’s predictions for 2025 pegged bitcoin rising above $200,000 for the first time. That number rises to $500,000 if the federal government adopts Senator Cynthia Lummis’ plan of buying 1 million bitcoin for a “strategic bitcoin reserve.”
President-elect Trump has also supported the idea of a bitcoin strategic reserve, but there is little clarity on how much bitcoin the government could hold, whether it would add to its existing holdings or what the purpose of such a reserve would be.
Standard Chartered analysts have a similar price expectation for bitcoin, and align with Bitwise on projecting that inflows for spot bitcoin ETFs in 2025 will remain similar to levels seen this year. These funds hold bitcoin as the underlying security and need to purchase it as investors pour money into them. So far this year, bitcoin ETFs have seen net inflows of more than $36 billion, according to data from Farside Investors.
Analysts are VanEck are also bullish, but less so. They expect bitcoin prices to reach a high of $180,000 in 2025 with volatility galore: They see bitcoin prices falling by roughly a third (30%) after touching new highs earlier in the year, followed by a period of consolidation during the summer before a peak toward year-end.
