The value of Bitcoin has risen above $100,000, which has prompted analysts to express the idea that the currency has a great future. Some now predict that the cryptocurrency will hit $200,000 by the end of 2025. This is mainly due to the rising institutional demand; MicroStrategy, for instance, has fast-tracked its BTC buying spree. In the coming days, as more institutional money pours in, the price of BTC may go even higher.
On Thursday, a report was launched by Geoff Kendrick, the Global Head of Digital Assets Research at Standard Chartered, on the future of Bitcoin. In the opinion of Kendrick, the present rally is mostly being driven by institutional investors buying Bitcoin spot exchange-traded funds (ETFs). These investors want to get exposure to BTC in a regulated and easily accessible product. Kendrick also pointed toward MicroStrategy’s rather bold approach to cryptocurrency buying, especially BTC, where the company is exceeding its initial plans.
2025 Bitcoin Price Forecast
Kendrick is also forecasting that institutional buying will remain constant or even grow in 2025 to the same rate as 2024, which means that Bitcoin price might surge. He also mentioned that policies that may change under President elect Donald Trump may enhance the attractiveness of Bitcoin to institutional investors. Kendrick has set his price target for BTC by the end of 2025 to $200,000 due to the current rate of investment.
One of the main factors that contributed to the price surge has been the MicroStrategy’s Bitcoin buying approach. The firm recently announced a $42 billion plan to acquire Bitcoin within the next three years from the proceeds of equity and debt. Since the November election, MicroStrategy purchased an additional 150,000 BTC, taking its total holdings to over 402,000 BTC worth over $40.5 billion. This has happened in the last few days alone and has contributed more than $15 billion to the company’s BTC holdings which has contributed to the rising price of the currency.
Institutional Investment in Bitcoin
Kendrick expects other institutional investors, including pension funds and sovereign wealth funds, to allocate more funds to BTC in 2025. If big American retirement funds or even global sovereign wealth funds decide to invest a lot in BTC this can greatly affect its price. According to Kendrick, the asset’s value may rise even more if these investors increase the percentage of their portfolios invested in BTC.
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The concept of creating a U.S. Bitcoin strategic reserve has also gained interest as well. While Kendrick considers this a “low probability” event, he says that if the incoming Trump administration were to act on such a policy, it could have a huge effect on the price of BTC. Establishing a national Bitcoin reserve would be a step towards the mainstream acceptance of the cryptocurrency as an asset class more investors could be drawn to it.
Coinbase CEO Supports Reserve
This view was recently supported by Coinbase CEO Brian Armstrong who encouraged governments to consider creating Bitcoin reserves. Armstrong made the announcement on X (previously Twitter) due to the rising use of Bitcoin in the financial world. He is of the opinion that a Bitcoin reserve could be very effective in ensuring the future of digital currency, through price stability.
At the same time, the price of $100,000 has become Round Figure for many investors, with psychological significance. Matt Mena a Crypto research strategist at 21Shares has noted that once BTC price hits the $100,000 mark new investors who have been on the fence may be drawn into the market. However, some analysts believe that the recent increase may trigger a period of profit-taking. Brent Kenwell, an investment analyst at eToro, said that the price of BTC may stabilize because some investors will want to exit after the recent surge.
In conclusion the breaking of $100,000 barrier has rejuvenated the crypto space again especially with the cryptocurrency. Bitcoin’s future seems bright as more institutions are investing in the currencies and possible regulation changes may bring stability to the market. Analysts believe that it will keep on rising and it could be selling at $200,000 by the year 2025.
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The price predictions and financial analysis presented on this website are for informational purposes only and do not constitute financial, investment, or trading advice. While we strive to provide accurate and up-to-date information, the volatile nature of cryptocurrency markets means that prices can fluctuate significantly and unpredictably.
You should conduct your own research and consult with a qualified financial advisor before making any investment decisions. The Bit Journal does not guarantee the accuracy, completeness, or reliability of any information provided in the price predictions, and we will not be held liable for any losses incurred as a result of relying on this information.
Investing in cryptocurrencies carries risks, including the risk of significant losses. Always invest responsibly and within your means.
