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CryptoIntelligence 2024-12-18 16:02:00

Institutional Demand to Drive Bitcoin Price in 2025, Analysts Say

Bitcoin price dips will likely be brief in 2025 due to robust institutional demand, according to Bitfinex analysts. In a Dec. 17 market report, they forecast a best-case scenario where Bitcoin could double its current price by June 2025. Their minimum price estimates “stand at $145,000 by mid-2025, potentially stretching to $200,000 under favorable conditions.” Bitcoin Volatility Expected in Early 2025 “Our view is that any corrections in 2025 will remain mild, thanks to institutional inflows,” the analysts stated. They anticipate Bitcoin volatility in the first quarter of 2025 but believe the broader trend will favor price growth, fueled by inflows into spot Bitcoin exchange-traded funds (ETFs) and rising global adoption. As of now, approximately $36 billion has flowed into U.S.-based spot Bitcoin ETFs since their launch in January, according to Farside Investors. “The BTC ETFs are one of the largest cohorts of Bitcoin holders at over 1.13 million BTC,” the analysts noted. At the time of publication, Bitcoin was trading at $105,360, according to CoinMarketCap. Nic Carter, partner at Castle Island Ventures, told Bloomberg Television on Dec. 17 that Bitcoin’s long-term value could grow nearly ninefold. “Long-term, I’m looking for Bitcoin to match the market cap of gold, which would price Bitcoin at $900,000,” Carter said. Potential for Higher Peaks Bitfinex analysts noted that if Bitcoin mirrors its 2021 cycle, rising 40% above its moving averages, it could reach $339,000. Alternatively, if the extended 2017 cycle repeats with diminishing returns, Bitcoin might peak around $290,000 by early 2026. US Bitcoin Reserve Speculation The incoming Trump administration’s potential creation of a strategic Bitcoin reserve has sparked industry speculation. “If one country implements a Bitcoin strategic reserve, you can kiss goodbye to your 4-year cycles,” crypto analyst Tyler Durden posted on Dec. 17. Pro-crypto Senator Cynthia Lummis has pledged to push legislation for the U.S. government to buy and hold Bitcoin for at least 20 years.

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