Mark Palmer, senior analyst at New York investment bank The Benchmark Company, predicts Bitcoin will rise to $225,000 by the end of 2026. This implies a growth of 135% from current levels, with the cryptocurrency's price trading around $96,000 on Friday.

This rally will primarily occur due to institutional investors who will continue to increase their appetite for Bitcoin in the coming years, Palmer said in an interview with Yahoo Finance this week.

Palmer drew an analogy with gold, which began to rise when investors and pension funds started buying exchange-traded funds investing in gold in the early 2000s. This event paved the way for gold to achieve status as a popular investment: since the beginning of the century, the metal has appreciated by 845%.

"The reality is that we are dealing with many underfunded pension funds. Bitcoin is an uncorrelated asset with enormous growth potential. Therefore, adding Bitcoin to a portfolio makes sense," Palmer said. "If this continues, and we see institutions finding ways to incorporate Bitcoin and other cryptocurrencies into their portfolios, it will lead to significant price growth."