Janice R. Andrews
The realm of cryptocurrency remains captivating to investors, as seen by the phenomenal growth of Bitcoin (CRYPTO: BTC), which has surged by an astounding 65% to about $68,000 since the beginning of 2024. Despite this impressive rise, some Wall Street experts anticipate even bigger profits for the bitcoin sector.
Analyst Gautam Chhugani of Bernstein believes that Bitcoin will hit a high of $150,000 by the middle of 2025. This forecast indicates an astounding 120% increase, or $82,000, over the course of the following 12 to 18 months. Likewise, Standard Chartered Bank strategist Geoff Kendrick has an even more optimistic forecast, speculating that Bitcoin may reach $200,000 by the end of 2025. This prediction represents an astounding 194% increase, or $132,000 over the next 21 months.
The laws of supply and demand are what ultimately decide the value of cryptocurrencies, such as Bitcoin. Notably, 19.7 million (94%) of the 21 million coins that might possibly be produced for Bitcoin are already in circulation. Consequently, the dynamics of demand continue to be the fundamental factor influencing Bitcoin’s worth.
Two drivers that Chhugani and Kendrick see as likely to drive demand for Bitcoin in the near future are the impending halving event and the recent approval of spot Bitcoin exchange-traded funds (ETFs).
An important first step was the Securities and Exchange Commission’s (SEC) January approval of spot Bitcoin ETFs. Spot Bitcoin ETFs provide direct exposure to the cryptocurrency by making direct investments in it, in contrast to Bitcoin futures ETFs, which made their debut in 2021. The simplified accessibility of this platform removes the obstacles related to cryptocurrency exchanges and blockchain wallets, which might draw a wider range of institutional and individual investors to the market.
It seems that the introduction of spot Bitcoin exchange-traded funds (ETFs) has attracted significant attention; the most successful ETF launches in history have been those offered by Fidelity and BlackRock. The investing community’s apparent need for direct exposure to Bitcoin is shown by this spike in interest.
In the future, Chhugani believes that these advancements will open the door for unprecedented institutional adoption of Bitcoin, especially considering that by 2025, institutional assets under control are expected to be worth $145 trillion. As a result, even a little institutional capital investment in Bitcoin may trigger a large increase in its price trajectory.
Apart with ETF advancements, the upcoming April 2024 halving event is expected to drive up the price of Bitcoin even more. About every four years, there are halving events that result in a halving of the mining incentives for verifying transactions. Based on past statistics, Bitcoin has often experienced significant price growth following these kinds of occurrences.
Even with the bullish forecasts that Chhugani and Kendrick provided, investors should be cautious and aware of the volatility that comes with Bitcoin. Notably, during the most recent cryptocurrency market collapse, the value of Bitcoin fell by more than 76%, underscoring the possible hazards involved with investing in it.
For risk-averse investors, Bitcoin offers an alluring investment opportunity, but it’s crucial to have a long-term view. Even if analysts’ suggested price objectives of $150,000 and $200,000 are realistic, investors should be realistic and aware of how volatile the cryptocurrency markets may be.
**Disclaimer: Financial advice is not provided by this publication. Before purchasing Bitcoin or any other cryptocurrency, investors should do extensive research and take their risk tolerance into account.
