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Emerging crypto regulation and the US Federal Reserve’s monetary policy path will be the main drivers of Bitcoin’s price trajectory in 2025, Binance Research told Cointelegraph.
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Bitcoin price may reach a $200,000 peak during the 2025 market cycle, according to New York Stock Exchange-listed KULR Technology Group, which bought millions worth of Bitcoin during the correction.
KULR Technology Group bought over $21 million worth of Bitcoin (BTC) at the average price of $97,391 on Jan. 6, according to an announcement shared with Cointelegraph.
The $21 million purchase occurred hours before Bitcoin reclaimed the $100,000 mark for the first time since Dec. 19, Cointelegraph Markets Pro data shows.
BTC/USD, 1-month chart. Source: Cointelegraph
Still, Bitcoin may double its price from the current valuation, driven by growing adoption worldwide, according to Michael Mo, the CEO of KULR Technology.
This may set up Bitcoin for a cycle top of above $200,000 in 2025, Mo told Cointelegraph.
“The biggest catalyst is the adoption of a strategic BTC reserve by nations and states. US, Germany, Switzerland, and other [countries] are currently looking into it,” he said.
The US Bitcoin Act — championed by Wyoming Senator Cynthia Lummis — proposes the creation of a strategic Bitcoin reserve for the world’s largest economy.
Lummis Bitcoin Act. Source: Lummis.senate.gov
Bitcoin may eventually surpass the $1 million price tag if the Bitcoin Act is accepted by US lawmakers, according to Adam Back, co-founder and CEO of Blockstream, the inventor of Hashcash and one of the most notable cryptographers in the industry.
However, Bitcoin’s market capitalization would need to attract another $2 trillion worth of capital to surpass the $200,000 mark, which would see BTC surpass Apple’s $3.7 trillion market capitalization to become the world’s second-largest asset.
Related: Trader turns $2K into $3.2M in 10 hours on metaverse token
Crypto regulations and Fed policy will drive Bitcoin price in 2025: Binance Research
Expectations of improving crypto regulations and monetary policy were some of the main drivers of Bitcoin’s rally to the $108,300 all-time high.
Bitcoin’s dip below $100,000 was likely caused by the Federal Reserve’s decision to deliver fewer interest rate cuts in 2025, according to a Jan. 6 report by Binance, which wrote:
“The rally faltered in late December when the Federal Reserve reduced its planned 2025 rate cuts from four to two, despite a modest 0.25% cut during the month, triggering a sharp market correction that wiped over US$0.5TB from the cryptocurrency market capitalization.”
Fed target rate probabilities. Source: CME Group
The latest estimates suggest that the odds of a 0.25% interest rate cut are at 9.1%, while the odds of holding the current rate stand at 90.9%, according to estimates from CME Group’s FedWatch Tool.
Related: Bitcoin targets $120K in January amid record Binance stablecoin reserves
While Bitcoin managed to recover above $100,000, sustaining the current rally will greatly depend on the evolving crypto regulations, Binance Research told Cointelegraph:
“Sustaining these levels over the long term will depend on various factors, including the actual implementation of crypto regulations and the Federal Reserve’s policy path in 2025.”
Meanwhile, the new year is already bringing signs of growing Bitcoin adoption among institutions.
The governor of the Czech National Bank, Aleš Michl, recently considered Bitcoin in a diversification strategy for the country’s foreign exchange reserves, Cointelegraph reported on Jan. 7.
Eric Trump Explains How His Dad Could Propel BTC to $1M. Source: Cointelegraph/YouTube
Magazine: BTC hits $100K, Trump taps Paul Atkins for SEC chair, and more: Hodler’s Digest, Dec. 1 – 7
This article first appeared at Cointelegraph.com News
