Where Analysts Think Bitcoin is Headed in 2025

• Analysts from Bitwise, Standard Chartered and VanEck see Bitcoin rising to the $180,000-$200,000 level in 2025.

• Analysts say inflows into spot bitcoin ETFs in 2025 could keep up with numbers from 2024.

• Bitcoin prices could also see a boost if the US decides to adopt a strategic reserve for Bitcoin.
  

Bitcoin (Bitcoin against the dollar) had a strong 2024, surpassing several price milestones — including $100,000 — as a confluence of factors increased investor confidence in the leading cryptocurrency.

It all started with the demand associated with Spot Bitcoin ETFs (ETFs) that began trading in January, followed by the excitement of halving the supply of new Bitcoin, and then the hope of supportive policies for cryptocurrencies after the re-election of Donald Trump, which was apparently boosted by several of his post-election appointments.

While the Fed’s latest forecast to cut interest rates next year has rattled cryptocurrency markets, some of the reasons for optimism mentioned above are still on the table — although if the Fed slows its rate-cutting campaign, experts say, returns Treasuries could remain high, which will shift investors away from Bitcoin and other risky assets.

That’s why some analysts remain optimistic about Bitcoin, but warn of the volatility ahead.

Before the shock Fed meeting, digital asset manager Bitwise’s 2025 forecast pegged bitcoin rising above $200,000 for the first time. This number rises to $500,000 if the federal government adopts Senator Cynthia Lummis’ plan to purchase 1 million bitcoins for a “strategic bitcoin reserve.”

President-elect Trump also supported the idea Bitcoin strategic reserveBut there is little clarity on how much bitcoin the government can hold, whether it will add to its existing holdings or what the purpose of this reserve is.

Standard Chartered analysts have similar forecasts for the price of bitcoin, and agree with Bitwise in predicting that spot bitcoin ETF inflows in 2025 will remain similar to levels seen this year. These funds hold Bitcoin as the underlying security and need to buy it when investors pump money into it. So far this year, Bitcoin ETFs have seen net inflows of more than $36 billion, according to data from Farside Investors.

Analysts say VanEck is also optimistic, but less so. They expect Bitcoin prices to reach a high of $180,000 in 2025 with plenty of volatility: They see Bitcoin prices falling by about a third (30%) after touching new highs earlier in the year, followed by a period of consolidation over the summer before the peak. . Towards the end of the year.

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