An analyst stated that Bitcoin's rebound is far from over, believing that the price of this cryptocurrency will more than double in the coming years.
Mark Palmer, a senior analyst at the New York-based investment bank The Benchmark Company, stated that he expects Bitcoin prices to surge to $225,000 by the end of 2026.
In the early 21st century, when investors and pension funds began buying gold exchange-traded funds (ETFs), gold prices started to soar. This development opened the door for gold to become a more mainstream investment, and since the beginning of this century, gold prices have risen by 845%.
Palmer said, 'The reality is that there are many under-invested pensions. Bitcoin is a non-correlated asset with significant potential upside. Therefore, it makes sense to add a portion of Bitcoin to the portfolio.'
'If this situation continues, and we continue to see institutions finding ways to incorporate Bitcoin and cryptocurrencies into their portfolios, then this will significantly increase the demand for Bitcoin, which is how prices are pushed up.'
Palmer also pointed out the previous Bitcoin halving, where Bitcoin miners' rewards are halved approximately every four years. He noted that in the past three halving events, Bitcoin saw a 'significant increase' in the following 14-16 months, demonstrating the impact of supply and demand changes on cryptocurrency prices.
The price of Bitcoin may also be supported by a more cryptocurrency-friendly environment, as investors expect that Trump's second term could help boost cryptocurrency prices. Traders are looking forward to the incoming president, dubbed the 'crypto president', relaxing regulations and possibly establishing a Bitcoin strategic reserve, which he proposed in the months leading up to the election.
Reports indicate that Trump has also interviewed candidates for a position in the White House specifically responsible for cryptocurrency policy, and the appointee could earn the title of the first-ever 'Crypto Czar'. Palmer believes this role would be beneficial for Bitcoin.
He said, 'Just the fact that someone will focus on making America a leader in areas like cryptocurrency and Bitcoin mining is a huge shift.'
Wall Street is also increasingly optimistic about Bitcoin, with forecasters setting increasingly ambitious targets as they prepare for Trump's second term.
On the betting site Polymarket, which accurately predicted Trump's election, the likelihood of Bitcoin reaching $100,000 by the end of this year has soared to 73%.
Data from Deribit, a cryptocurrency derivatives exchange cited by Bloomberg earlier this month, shows that options traders are also betting that Bitcoin will reach six figures by the end of 2024.
