Will the price of bitcoin continue to soar in the new year?
The return of President-elect Donald Trump to the White House is a lever supporting investor sentiment in the cryptocurrency market, causing many to "dream" of a bright future for cryptocurrencies, especially bitcoin, under a policy environment that is highly supportive.
Throughout his campaign, President Trump pledged to replace the chairman of the U.S. Securities and Exchange Commission (SEC) Gary Gensler, who has a strict stance on the cryptocurrency market and has taken many legal actions against some businesses operating in this market. Mr. Gensler will "step down" for his successor, who is expected to be more open-minded, on January 20.
Additionally, President Trump has ambitions to establish a strategic bitcoin reserve funded by money seized from criminal activities.
Positive information has pushed the price of bitcoin to an all-time high of over 108,000 USD on December 17, 2024.
After a successful 2024 for the cryptocurrency market in general and bitcoin in particular, many experts and organizations in the industry are confident that this currency will conquer new heights in 2025. What are their forecasts?
Matrixport: 160,000 USD
The cryptocurrency financial services company Matrixport predicts that the price of bitcoin will reach 160,000 USD in 2025.
"The market outlook is supported by stable investment demand for spot bitcoin ETFs, favorable macroeconomic trends, and a global liquidity expansion, " Markus Thielen, the head of research at Matrixport, shared with CNBC.
Bitcoin is often known for its high volatility, experiencing declines of up to 70-80% from its peak. Thielen stated that the risk of correction for the world's most popular cryptocurrency in 2025 is "not too large."
"Strong bottom-fishing sentiment and high demand from institutional investors will be factors that help mitigate sharp corrections in bitcoin," Thielen noted.
In 2023, Matrixport forecasts that the price of bitcoin will reach 125,000 USD in 2024.
Galaxy Digital: 185,000 USD
Alex Thorn, head of research at digital asset management company Galaxy Digital, predicts that the price of bitcoin could exceed 150,000 USD in the first half of 2025 before rising to 185,000 USD in Q4.
"The acceptance of bitcoin by institutions, businesses, and countries will take bitcoin to new heights in 2025," Thorn wrote in a recent report.
"Since its inception, bitcoin has always outperformed other asset classes, especially the S&P 500 and gold. This trend will continue in 2025. Bitcoin will soon reach the milestone of 20% of gold market capitalization," he wrote.
Galaxy forecasts that spot bitcoin ETFs in the U.S. will hold a total of 250 billion USD by the end of 2025.
Maple Finance: 180,000-200,000 USD
Sid Powell, co-founder and CEO of the centralized finance platform Maple Finance, expects the price of bitcoin to be in the range of 180,000-200,000 USD by the end of 2025.
"If you look back, at the time when gold ETFs were launched, the inflows in the following years were often much larger than in the first year. I believe the same will happen with bitcoin ETFs," Mr. Powell shared on CNBC's "Squawk Box Europe."
"The inflow of funds into ETFs will significantly increase in the coming years as bitcoin and many other cryptocurrencies become a focus of investment by asset management firms," Mr. Powell added.
Standard Chartered: 200,000 USD
Geoffrey Kendrick, head of digital asset research at Standard Chartered Bank, made a bold prediction for bitcoin, stating that the price will double to 200,000 USD in 2025.
He predicts institutional investment demand for bitcoin in 2025 will be "at least equivalent to that of 2024."
Kendrick stated that the amount of bitcoin that MicroStrategy, the world's largest bitcoin holder, will buy will be similar to or exceed that of 2024.
Pension funds will also add bitcoin to their portfolios through spot bitcoin ETFs, based on expectations that the new administration of President-elect Donald Trump will change regulations to allow traditional financial firms to access cryptocurrencies.
Nexo: 250,000 USD
Elitsa Taskova, product development director at the digital lending platform Nexo, is the most optimistic about bitcoin, predicting that this currency will rise to 250,000 USD in 2025.
"We expect the price of bitcoin to more than double in less than a year," she shared with CNBC. And in the next decade, the total market capitalization of cryptocurrencies will "surpass" gold, she stated.
"My forecasts align with current market trends: the recognition of bitcoin as a reserve asset, a greater number of trading products related to cryptocurrencies, and the increasing popularity of cryptocurrencies," she shared.
Favorable macroeconomic conditions, such as a monetary policy easing cycle from major central banks, will be a springboard for bitcoin to rise, she added.