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The cryptocurrency market was bullish in 2024. Bitcoin, the leading cryptocurrency by market cap, added over 140% to its value last year, outperforming other major assets, including Gold (26%) and S&P 500 (23%).
Last year’s rally saw Bitcoin break past the $100k mark for the first time in its history. This article will explore Bitcoin’s price performance so far this year and how far it can go.
Bitcoin Hit a New All-time High on Jan. 20
New year, same Bitcoin. The leading cryptocurrency by market cap continued where it left off in 2024. The Bitcoin price surged to a new all-time high on January 20th after hitting the $109,114 mark.
The market has been volatile since then, with BTC slipping below $98k on Monday, January 27th. However, it has since recovered and now trades above $102k per coin. If the bullish momentum resumes, Bitcoin could set a new all-time high in the coming weeks or months.
How High Can Bitcoin Go?
Bitcoin has already set a new all-time high in 2025, but many analysts believe it could go higher in the coming months. The predictions differ, ranging from $150,000 to $250,000.
However, some macroeconomic factors could determine how high Bitcoin’s price could go in 2025. Here are the factors.
inflation/ Interest rate
The inflation and interest rates in the United States usually play a huge role in the Bitcoin price outlook. A low inflation rate will see the Federal Reserve decrease interest rates to stimulate the economy and try to raise inflation levels to their target range. The lower the interest rates, the higher the price of assets like Bitcoin and Gold.
The Federal Reserve is expected to cut interest rates twice in 2025, which could be bullish for Bitcoin and other major assets.
Retail and Institutional Adoption
2024 saw significant liquidity from institutional investors into Bitcoin and the trend could continue this year. Michael Saylors’ MicroStrategy leads the way and has already spent billions of dollars this year in adding bitcoins to its holdings.
Thanks to the launch of Bitcoin ETFs last year, more players are also getting into Bitcoin. BlackRock’s ETF, now the fastest-growing in history, has simplified access for institutional investors. The growing participation indicates Bitcoin’s appeal to retail and institutional players.
A Possible U.S. Strategic Reserve
There are talks of a possible digital assets strategic reserve in the United States. Donald Trump’s activeness in the crypto space in recent months has amplified this prediction.
If the United States launches a digital assets reserve with Bitcoin at the helm, BTC’s price could surpass the $200k average prediction in 2025.
Top Analysts Forecasts
Bitcoin has gone mainstream, so several leading analysts in the global financial markets are focusing on it. Some of these analysts shared their predictions for the Bitcoin price in 2025.
Markus Thielen, head of research at Matrixport, is bullish on BTC’s price prediction, setting it at $160,000 before the end of the year. He told CNBC that,
“This outlook is supported by sustained demand for Bitcoin ETFs, favorable macroeconomic trends, and an expanding global liquidity pool. Bitcoin’s growing base of dip buyers and robust institutional support is expected to mitigate severe corrections.”
Alex Thorn, head of research at crypto-focused asset manager Galaxy Digital, is also bullish, predicting BTC’s price to hit $185k in 2025. He said,
“A combination of institutional, corporate, and nation-state adoption will propel Bitcoin to new heights in 2025. Throughout its existence, Bitcoin has appreciated faster than all other asset classes, particularly the S&P 500 and gold, and that trend will continue in 2025. Bitcoin will also reach 20% of Gold’s market cap.”
Finally, Geoffrey Kendrick of Standard Chartered expects institutional flows into Bitcoin to continue, predicting Bitcoin’s price could hit $200,000 in 2025. He stated that,
“Even a small allocation of the USD 40tn in US retirement funds would significantly boost BTC prices. We would turn even more bullish if BTC saw more rapid uptake by US retirement funds, global sovereign wealth funds (SWFs), or a potential US strategic reserve fund.”
Bitcoin has already hit a new all-time high in 2025. Do you see it going higher or do you predict a market correction in the coming months?
This article first appeared at CoinJournal: Latest Crypto News, Altcoin News and Cryptocurrency Comparison
