As Bitcoin (BTC) gears up to reach new heights, the brokerage firm Bernstein has projected that the leading cryptocurrency could soar to $200,000 by 2025. Gautam Chhugani, who leads the research team, highlighted significant factors that could drive this target forward. “Bitcoin is on the brink of hitting $100,000. Our $200,000 goal for the end of 2025 is becoming increasingly realistic,” he remarked, recalling that this projection was made when Bitcoin was valued at $66,000. Political shifts in the U.S. are considered crucial to achieving this trajectory.
How Could Political Developments Influence Bitcoin?
With the possibility of Donald Trump returning to the presidency, Bitcoin-friendly initiatives are gaining steam in the U.S. The appointment of the next SEC Chairman, expected to be supportive of cryptocurrencies, is anticipated to play a significant role. Furthermore, Howard Lutnick, a known advocate for Bitcoin, is contending for the Treasury Secretary position, receiving endorsements from notable figures, thus improving his chances of success.
What Factors Are Driving Bitcoin ETF Demand?
Recent developments show that demand for spot Bitcoin ETFs in the U.S. has surged, reaching $92 billion in assets under management, with weekly net inflows amounting to $1.7 billion. Additionally, MicroStrategy plans a substantial purchase of $42 billion worth of Bitcoin over the next three years, as founder Michael Saylor hints at a potential acceleration in acquisitions. This growing interest reflects a decrease in selling pressure among miners.
- Bernstein indicates Bitcoin’s price trajectory favors long-term holders.
- Institutional investors are reassessing their cryptocurrency strategies.
- Political and regulatory support is seen as essential for Bitcoin’s growth.
Bernstein asserts that Bitcoin is crafting a narrative favoring long-term holders. Chhugani advises holding onto the largest cryptocurrency for an additional 12-18 months, as major institutional players are increasingly reevaluating their positions on cryptocurrencies.