Bitcoin demand is rising as new ETFs give investors better access and increase international interest in cryptocurrency.
Governments and institutions are adopting Bitcoin as a key asset, with countries expected to double their holdings by 2025.
Bitcoin's limited supply and closing event continue to drive its value upward as demand keeps increasing worldwide.
Bitwise Asset Management, managing $12 billion in assets, predicts Bitcoin's benchmark value will exceed $200K by the end of 2025. The forecast is grounded in increasing money manager adoption, Bitcoin exchange-traded funds , and favorable political developments.
https://twitter.com/Vivek4real_/status/1876104550916247916 ETFs and Global Adoption Drive BTC Price
The coin is trading at $99,251 as of January 6, 2025, showing strong growth throughout the past year. Analysts suggest the introduction of Bitcoin exchange-traded funds has provided investors with safer ways to gain exposure to digital gold markets.
ETFs began trading in January 2024 and saw strong demand from wealthy shareholders, who drove Bitcoin’s value higher. Moreover, Bitcoin’s halving event in April 2024, which reduced the supply of new coins, further tightened availability, pushing fees upward.
The worldwide acceptance of Bitcoin also contributed to its increasing value. Nine countries currently hold Bitcoin in their reserves, and this number is expected to double to eighteen by 2025, making it an important asset for governments and institutions alike.
Pro-Bitcoin Policies Under Trump Administration
Donald Trump’s re-election in November 2024 brought excitement to the electronic currency market as his cabinet focuses on promoting digital assets. Proposals to establish the United States as a global leader in digital asset trading and plans for a Bitcoin strategic policy have bolstered confidence among Bitcoin supporters.
With Republicans controlling Congress, Trump’s administration can implement its policies more effectively than in his first term. Key advisors, including Elon Musk and Robert F. Kennedy Jr., have expressed support for Bitcoin, and this has led to optimistic expectations for new crypto-friendly initiatives.
Money managers have also embraced the coin as a mainstream economic asset, creating more demand and increasing its value trajectory.
Is Bitcoin’s Scarcity an opportunity or a Demerit?
While the coin's popularity grows, its control remains concentrated among a small number of shareholders. Only 1.82% of Bitcoin addresses hold a full coin, while just 8.2% have more than 0.1 BTC. Furthermore, only 0.25% of addresses own more than 10 BTC, equal to roughly $1 million at current prices.
The token's recent climb to $100,000 reflects its increasing importance in the monetary system, and its limited supply could further enhance its value as consumer appetite continues to rise internationally.
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