Bitcoin has weathered its year-end correction due to “tax harvesting,” and is now trading at around $97,000. Experts predict that Bitcoin could peak at $120,000 in January 2025, with a long-term growth potential of up to $200,000.
Causes and context of recovery
• Year-end “tax harvesting”: Isaac Joshua, CEO of the Gems token platform, explained that the price drop in December 2024 was due to investors liquidating assets to optimize tax reporting. This is a common phenomenon in financial markets at the end of the year.
• The early-year recovery: Investors are seeking liquidity again after the holidays, along with the start of the new fiscal year, has created momentum for Bitcoin's recovery.
The Role of Bitcoin ETF and BlackRock
Ryan Lee, the chief analyst of Bitget, noted that BlackRock's Bitcoin ETF is driving the adoption of Bitcoin:
• The iShares Bitcoin Trust (IBIT) has reached the milestone of $50 billion in assets under management in just 228 days, five times faster than any other in history.
• ETFs make it easier for institutional investors to access Bitcoin, enhancing legitimacy and driving widespread acceptance.
Bitcoin price forecast
• Short term: Joshua expects Bitcoin to reach $120,000 in January 2025 due to positive sentiment from economic policy and the inauguration of President Trump.
• Long term: Ryan Lee believes that Bitcoin's price could range from $83,000 to $120,000 in January, with the potential to rise to $200,000 by 2025, depending on factors such as:
• Regulatory development
• Market movement
• Global economic conditions
Conclusion
Bitcoin is showing impressive recovery after the late-year correction, with many factors supporting strong growth. Although prices may fluctuate in the short term, experts remain confident in Bitcoin's long-term potential, especially as ETFs continue to drive acceptance from the mainstream market. Can Bitcoin break the $200,000 record by 2025? The answer depends on how the market adapts to upcoming economic and regulatory factors.