H.C. Wainwright & Co., a renowned investment bank established in 1868, has raised its forecast for Bitcoin’s price by the end of 2025. In a recent investor report, the firm increased its projection from $145,000 to an ambitious $225,000, driven by a blend of historical price cycles, macroeconomic trends, and growing regulatory clarity.
The report highlights several factors contributing to this potential surge. A more accommodating US regulatory environment in 2025, potentially under new government leadership, could boost Bitcoin’s trajectory. Additionally, the widespread introduction of spot Bitcoin ETFs in the US is expected to draw substantial institutional investments, further fueling demand. According to H.C. Wainwright, improving global liquidity conditions and easing regulatory concerns are likely to create a conducive backdrop for Bitcoin’s rise. However, they caution that macroeconomic variables, such as a declining M2 money supply, may pose challenges along the way.
The firm’s research also acknowledges the volatility Bitcoin may experience during its climb, with potential retracements of 20-30% being common even in bull markets. It predicts Bitcoin may briefly correct to the mid-$70,000 range in early 2025 before resuming its upward march. If Bitcoin achieves the $225,000 milestone, it would bring the market capitalization to $4.5 trillion, approximately 25% of gold’s market value.
Interestingly, the bank’s projection doesn’t account for the possibility of Bitcoin being adopted as a federal treasury reserve asset in the US. Such a move could push Bitcoin’s price even higher than their base case scenario. Additionally, H.C. Wainwright anticipates the overall crypto market to grow significantly, expanding from its current valuation of $3.6 trillion to $10 trillion by 2025, while Bitcoin’s dominance is expected to decline to 45%.
This forecast underscores the transformative potential of Bitcoin and the crypto market, suggesting lucrative opportunities for investors in the coming years.
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