Bitcoin Price Could Hit $200K by 2025, Analysts Say

Bitcoin recently surpassed the $100,000 mark for the first time, and now analysts are speculating that the price could double within a year. This bullish outlook is fueled by growing interest from institutional investors and significant investments from companies like MicroStrategy.

In a recent research note, Geoff Kendrick, the Global Head of Digital Assets Research at Standard Chartered, shared insights on the current market trends. Kendrick noted that Bitcoin's recent ascent has largely been driven by institutional investment, particularly in spot exchange-traded funds (ETFs). He emphasized that MicroStrategy, a firm dedicated to Bitcoin investments, has been purchasing the digital currency at an extraordinary pace.

"We anticipate that institutional flows will continue at or above the pace set in 2024," Kendrick explained. He also mentioned that potential regulatory changes under President-elect Donald Trump could encourage even more investment. With this background, Kendrick set an ambitious end-of-2025 price target for Bitcoin at around $200,000.

MicroStrategy has revealed a massive plan to invest $42 billion in Bitcoin over the next three years, utilizing both equity and debt. Kendrick noted that the company has been exceeding its own predictions. As of now, MicroStrategy holds 402,100 Bitcoins, valued at over $40.5 billion, with the company's holdings increasing by 150,000 Bitcoins since Election Day—a gain of around $15 billion.

Looking beyond MicroStrategy, Kendrick foresees pension funds diving into spot Bitcoin ETFs at an increased rate in 2025. If major retirement funds in the U.S. or prominent global sovereign wealth funds also make significant investments, it could lead to a more bullish outlook for Bitcoin's price.

Furthermore, Kendrick pointed out that if President-elect Trump follows through on his suggestion of establishing a U.S. strategic reserve of Bitcoin, it could further enhance Bitcoin's value, despite Kendrick viewing this scenario as having a low probability.

Coinbase CEO Brian Armstrong has echoed this sentiment on social media, suggesting that "every government" should consider a Bitcoin strategic reserve.

While analysts like Kendrick focus on 2025 price predictions, others are analyzing the immediate effects of Bitcoin's rise above $100,000. Matt Mena, a research strategist at 21Shares, described the $100,000 threshold as a significant psychological milestone. He believes this could attract new investors who had previously remained on the sidelines.

Conversely, Brent Kenwell, an investment analyst at eToro, warned that those already invested in Bitcoin might decide to take profits after surpassing the $100,000 mark. He stated that it wouldn’t be surprising to see a temporary pause in Bitcoin’s rally.

After reaching a peak of approximately $103,600, Bitcoin’s price dipped to around $93,000. However, by Friday afternoon, it rebounded to approximately $102,000, maintaining its position above the $100,000 threshold.

FXTM Senior Market Analyst Lukman Otunuga had previously indicated the possibility of a more substantial pullback. He noted that a strong weekly close above the $100,000 mark might suggest further upward momentum. On the other hand, a drop below this key level could lead to a target of $95,000 for bears.

Bitcoin, Investment, Forecast