Bitcoin price will reach $225,000 by the end of the year
In a recent investment note, H.C. Wainwright & Co., founded in 1868, forecast a significant increase in the price of bitcoin. The organization raised its 2025 bitcoin price forecast from $145,000 to $225,000, citing historical trends, macroeconomic data, and growing regulatory and institutional considerations.
“We estimate that Bitcoin will reach a cycle high of $225,000 by 2025,” the firm said, citing market cycles and a more friendly U.S. regulatory environment for digital assets in 2025 under a new government.
The H.C. Wainwright report identifies several key drivers of Bitcoin’s rally. The expanding availability of spot Bitcoin ETFs in the U.S. could attract more institutional investment.
In addition, the investment bank’s models anticipate an improving market backdrop with global liquidity and a reduced regulatory burden. HC Wainwright warns that macroeconomic conditions, particularly M2 money supply, which has declined since October, are weighing on the forecast.
Despite predicting a six-figure price by 2025, HC Wainwright admitted that Bitcoin’s journey to $225,000 will be a tough one. The bank warned that 20-30% declines are common during bull markets in the research. Bitcoin could return to the mid-$70,000s in early Q1 2025 before resuming its ascent.
If Bitcoin hits $225,000 per coin, HC Wainwright estimates a market cap of $4.5 trillion — 25% of gold’s $18 trillion. That scenario raises the bar by 113%. The note includes a startling possibility not included in its main forecast:
“Our new 2025 price target does not take into account the possibility that the U.S. government will adopt Bitcoin as a federal reserve asset next year. We believe that Bitcoin could exceed our base price target if it is implemented.”
HC Wainwright predicts that Bitcoin’s dominance will decline to 45% by 2025 from 56%. This assumption leads the firm to estimate that the crypto industry will grow from $3.6 trillion now to $10 trillion by 2025.
