Bitcoin generated a giant buzz across the financial market, reaching as high as $100k this year. With the feat, analysts such as Matrixport have revealed that the asset would continue its surge next year. According to Matrixport, Bitcoin could hit as high as $160k in 2025. Bitcoin’s use cases, institutional adoption, and increased regulatory clarity have been fingered as factors that could push the asset upward.
The global crypto market is enjoying the rapt attention of everybody, thanks to the Donald Trump-fuelled surge after the United States election. Over the last month, Bitcoin has grown by 55%, with its dominance hitting 55.22%. Similarly, the total cryptocurrency market cap is at $3.6 billion.
Matrixport makes wild Bitcoin prediction
According to Matrixport’s report, Bitcoin’s price could see a 60% rise, pushing it to $160k. The report cited sustained demand for Bitcoin ETFs, and other economic shifts. According to its analysis, there will need to be a 1.55% allocation for optimal diversification and portfolio stability. The report also noted that adoption is reaching a critical stage, with the asset expected to hit above 8% in global adoption.
BlackRock, in a recent statement, highlighted the need to limit Bitcoin to a 2% multi-asset portfolio because of its volatility. The firm highlighted the ratio is needed to balance risks using a 60/40 portfolio with tech stocks. The report also revealed that market dynamics have changed, noting the limited chances of an 80% drawdown because of increased institutional presence and traders buying the dip. While corrections are expected, they won’t be severe.
Trump makes his crypto plans
Donald Trump has highlighted his plans to ensure the United States takes the lead in global crypto adoption. In a recent CNBC interview, Trump said the country wants to do something great with crypto, noting the need to be ahead of China in the industry. Trump has made so many pro-crypto declarations, with the formation of a Bitcoin reserve the boldest so far. The move, if approved, would put the United States at the top.
Meanwhile, there are raised eyebrows about his collaborations with billionaire Steve Witkoff. The recent move was Trump’s preference to work with TRON, a platform that has been fingered as the preferred destination for criminals. According to sources, Trump’s venture World Liberty bought $1 million worth of LINK and about $240,000 AAVE. The platform also uses $30 million USDC to purchase ETH, with $10 million USDC going into the purchase of cbBTC.
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