As the price of Bitcoin inched closer to the $100,000 mark, one analyst predicted that the rally is far from over and that the cryptocurrency will double in price over the next two years.
Mark Palmer, a senior analyst at New York investment bank The Benchmark Company, said he expects Bitcoin to soar to $225,000 by the end of 2026. This means that the price of Bitcoin can still rise by about 133.5% from its current level.
Three major catalysts
In his latest interview, he said the rebound will be mainly driven by institutional investors, adding that "their interest in Bitcoin will continue to increase in the next few years."
Palmer used the example of gold prices, which began to surge in the early 2000s when investors and pension funds began buying gold exchange-traded funds (ETFs). This development opened the door for gold to become a more mainstream investment, and the price of gold has risen 845% since the beginning of the century.
He further explained: “The reality is that many pension funds are underfunded. Bitcoin is a ‘non-correlated asset’ with a lot of potential upside. Therefore, it makes sense to have a portion of Bitcoin in the portfolio,”
“If this continues and we continue to see institutions find ways to include bitcoin and cryptocurrencies in their portfolios, then that’s going to significantly increase demand for bitcoin, and that’s how you get higher prices,” he added.
Palmer also cited the Bitcoin halving factor, noting that after the past three halving events, Bitcoin saw “massive gains” in the following 14-16 months, demonstrating how changes in supply and demand can affect the price of cryptocurrencies.
Bitcoin halving is an important mechanism in the Bitcoin protocol, which is halved every four years to control the issuance speed and total amount of Bitcoin and ensure the scarcity of Bitcoin. Specifically, Bitcoin halving refers to the reduction of mining rewards.
Bitcoin prices could also be supported by a friendlier cryptocurrency environment, with investors hoping a second term by Trump will help boost prices. Traders are looking to the president-elect, dubbed the "crypto president," to ease regulations and potentially establish a national Bitcoin reserve, something he proposed months before the election.
As part of his efforts to reshape cryptocurrency regulation, Trump is considering Chris Giacarlo as the new administration's "crypto czar." He served as CFTC chairman during Trump's first term, during which Bitcoin futures were approved for listing in the U.S. The role of crypto czar would be responsible for helping to implement crypto policy and potentially oversee an industry-led advisory committee.
“Just the fact that someone is going to be focused on making the U.S. a leader in areas like cryptocurrency and bitcoin mining is a huge change,” Palmer said.
Bullish sentiment continues
In fact, it’s not just Palmer. Since Trump’s victory, Wall Street tycoons have become increasingly optimistic about this cryptocurrency and have set increasingly ambitious goals.
For example, Tim Draper, a well-known American venture capitalist who has been predicting the price of Bitcoin since 2014, said in a recent interview that he expects the price of Bitcoin to reach around $120,000 by the end of this year and $250,000 in 2025.
He also mentioned the proposed U.S. Bitcoin Reserve as a contributing factor. He said: "Assuming a standard supply and demand curve, if there is such a large buyer, the price will continue to rise. I think 2025 is the year that Bitcoin will finally reach my $250,000 mark."
