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Representations of Bitcoin cryptocurrency are seen in this illustration taken on November 25, 2024.
Give Ruvic | Reuters
After a dazzling demonstration bitcoin This year, crypto investors and industry executives told CNBC that they expect the cryptocurrency to reach new all-time highs in 2025.
In December, the world’s largest cryptocurrency broke the long awaited $100,000, setting a record high price above that. What came next Donald Trump – who ran on a prominent pro-crypto political platform – secured a historic election victory in November.
Trump’s imminent return to the White House has boosted sentiment surrounding crypto with many industry executives and analysts looking to promote a more favorable regulatory environment for the digital asset.
During his election campaign, Trump promised to replace the chairman of the Securities and Exchange Commission, Gary Gensler, who took aggressive legal actions against various crypto companies. Gensler has agreed to resign from the SEC in 2025.
Trump has too indicated that the United States could establish a strategic reserve of bitcoincombining funds obtained for seizures from criminal activities.
Also in 2024, bitcoin reached the 2021 price close to $70,000 after the SEC gave the green light to 2021. first US spot bitcoin exchange-traded funds, or ETF.
The approval of the ETF was widely seen as a key moment for cryptocurrency as it broadens its appeal to more mainstream investors.
The other key moment in 2024 was the middlean event that takes place every four years and reduces the supply of bitcoin on the market. This is typically very supportive for the price of bitcoin.
These developments help move crypto past the narrative of an industry marred by scandal. This was the dominant theme of 2023 as two of crypto’s most prominent figures – FTX’s Sam Bankman-Fried and Binance’s Changpeng Zhao – both received prison terms on criminal charges.
This year, bitcoin has more than doubled in price. The token is widely expected to see even more positive price momentum in 2025 – with many industry observers predicting a doubling in value to $200,000.
CoinShares: $80,000-$150,000
James Butterfill, head of research for asset manager CoinShares, told CNBC that he sees prices of $150,000 and $80,000 being on the cards for bitcoin in 2025.
Butterfill said that in the long term it would not be “unreasonable” to expect bitcoin to be worth around 25% of gold’s market share – up from around 10% currently. This equates to a price of $250,000.
But don’t see that happening next year. “The timing of this is still very difficult and I don’t expect this to happen in 2025, but it will go in that direction,” Butterfill told CNBC via email.
He said it is “likely” that bitcoin could hit either $80,000 or $150,000 during the course of the year.
Butterfill’s $80,000 call, if hit, would be the result of Trump’s promised pro-crypto policies that didn’t materialize.
“The disappointment surrounding Trump’s proposed crypto policies and doubts about their enactment could trigger a significant market correction,” Butterfill said.
Next year, Butterfill expects a favorable US regulatory environment to be the primary driver supporting bitcoin prices.
In 2023, CoinShares predicts bitcoin to reach $80,000 in 2024.
Matrixport: $160,000
Matrixport, a crypto financial services company, said that bitcoin could hit $160,000 in 2025.
“This outlook is supported by sustained demand for Bitcoin ETFs, favorable macroeconomic trends, and an expanding global liquidity pool,” Markus Thielen, head of research at Matrixport told CNBC by email.
Bitcoin is known to be very volatile with the potential to correct between 70% and 80% from all-time highs. Thielen said drawdowns in 2025 will be “less pronounced.”
“Bitcoin’s growing base of dip buyers and robust institutional support is expected to mitigate severe corrections,” Thielen said.
Matrixport predicted in 2023 that bitcoin will hit $125,000 in 2024.
Galaxy Digital: $185,000
Alex Thorn, head of research at crypto asset manager Galaxy Digital, sees bitcoin crossing $150,000 in the first half of the year before reaching $185,000 in the fourth quarter.
“A combination of institutional, corporate and national state adoption will propel Bitcoin to new heights in 2025,” Thorn wrote in a research note shared with CNBC.
“Throughout its existence, Bitcoin has appreciated faster than all other asset classes, particularly the S&P 500 and gold, and that trend will continue in 2025. Bitcoin will also reach 20% of the market “Gold”.
Galaxy predicts that US spot bitcoin exchange products will collectively cross $250 billion in assets under management by 2025.
The firm expects that next year will also see five Nasdaq 100 companies and five nation states add bitcoin to their balance sheets or sovereign wealth funds.
Standard Chartered: $200,000
Geoffrey Kendrick of Standard Chartered demand a doubling of the price for bitcoin. The bank’s head of digital asset research said in a note earlier this month that he expects bitcoin to reach $200,000 by the end of 2025.
Standard Chartered expects institutional flows into bitcoin to “continue at or above the pace of 2024” next year.
Bitcoin inflows from institutions have already reached 683,000 BTC since the beginning of the year, the bank noted, via US spot ETFs that have been largely bought by Microstrategya software company and effective bitcoin proxy.
Kendrick said MicroStrategy’s bitcoin purchases should “match or exceed its 2024 purchases” next year.
Pension funds will also begin including more bitcoin in their portfolios via US spot ETFs next year thanks to anticipated reforms by the incoming Trump administration to rules on “TradFi” companies (finance traditional) that make investments in digital currencies, he added.
“Even a small allocation of USD 40tn in US retirement funds would significantly increase BTC prices,” Kendrick said. “We would turn even more bullish if BTC saw faster adoption by US retirement funds, global sovereign wealth funds (SWFs), or a potential US strategic reserve fund.”
Carol Alexander: $200,000
Carol Alexander, professor of finance at the University of Sussex, sees $200,000 bitcoin as a possibility next year.
“I’m more bullish than ever for 2025,” Alexander told CNBC, adding that the price of bitcoin “could easily reach $200,000 but there are no signs of reduced volatility.”
“By the summer, I expect it will be trading around $150,000 plus or minus $50,000.” Alexander clarified that she does not own bitcoins herself.
Explaining his logic, Alexander said that the supportive regulation of the United States will boost bitcoin, however, a lack of regulation on crypto exchanges will continue to drive volatility due to highly leveraged trades that they shoot up the prices in the course.
Alexander has a history of correctly calling the price of bitcoin. Last year, he told CNBC that bitcoin would reach $100,000 in 2024, which it did.
Bit Mining: $180,000 – $190,000
Youwei Yang, chief economist of Bit Mining, predicts that bitcoin will have a price between $180,000 to $190,000 in 2025 – but he is also cautious about potential pullbacks in the price.
“The price of Bitcoin in 2025 is likely to see both significant upward momentum and occasional sharp corrections,” Yang told CNBC. “In moments of market shock, such as a major stock market crash, bitcoin could temporarily drop to around $80,000. However, the general trend is expected to be bullish.”
Factors underlying an anticipated bitcoin rally in 2025 include lower interest rates, support from Trump, and increased institutional adoption.
“Based on these dynamics, I predict that Bitcoin could peak at $180,000 to $190,000 in 2025, aligning with historical cycle patterns and growing crypto adoption,” said Yang.
However, Yang also expects that next year will also bring a number of “corrections” for the price of bitcoins.
Risks to the downside include US-China tensions, global capital market disruptions, possible unexpected restrictive measures, and possible delays to the Fed’s cut cycle.
Last year, Yang predicted that bitcoin would reach $75,000 in 2024.
Maple Finance: $180,000 – $200,000
Sid Powell, CEO and co-founder of the centralized financial platform Maple Finance, targets a price between $180,000 and $200,000 for bitcoin by the end of 2025.
“If you look historically when we’ve seen gold ETFs come out, the inflows in the first year have increased dramatically in subsequent years – and I think we can expect to see that with the bitcoin ETF,” Powell said at CNBC’s “Squawk Box Europe.”
“I think we’ll see higher flows in the coming years as bitcoin and indeed crypto becomes a core asset allocation for institutional asset managers,” Powell added.
Another factor that Powell sees promoting the price of bitcoin is the anticipation of a strategic bitcoin reserve in the United States
However, the head of Maple Finance is wary of market pullbacks. “I think naturally you will see corrections — crypto remains a cyclical industry,” Powell told CNBC.
In previous market cycles, bitcoin rose wildly over the course of a few months before plummeting in value.
Take the previous cycle, for example: in 2021, bitcoin rallied to almost $70,000 as more and more investors piled in, but the following year, the token fell to less than $17,000 on the back of a series of major crypto company failures.
However, Powell stressed that the 70% to 80% drawdowns that bitcoin has seen in past cycles are unlikely in 2025 “because there is more of a buffer from those institutional flows in the sector.”
Nexus: $250,000
Elitsa Taskova, chief product officer of crypto credit platform Nexo, is more bullish on bitcoin’s 2025 prospects than the general consensus.
“We see bitcoin more than double to $250,000 in a year,” Taskova told CNBC, adding that in the longer term — as in, in the next decade — she sees the entire crypto market cap exceeding that of gold
“These projections align with ongoing trends and social markers: the growing recognition of Bitcoin as a reserve asset, more Bitcoin and crypto-related exchange-traded products (ETPs), and stronger adoption,” he said. said Nexo’s product manager.
Supportive macroeconomic conditions, such as the release of monetary policy from the world’s main central banks, is likely to boost bitcoin, he added.
“The Federal Reserve’s balancing act — managing interest rates and inflation while avoiding stagnation — will be pivotal,” he said, warning that, on the flipside, persistent inflation could also cause a pivot falcon.
“As the United States leads in the implementation of crypto capital, rate decisions and inflation dynamics will likely remain key influences on the price of bitcoin in 2025.”
