Bitcoin Price Expected to Reach $200K by 2025, Analysts Say

Bitcoin recently surpassed the $100,000 mark for the first time, and now analysts are predicting that the price could potentially double within a year.

In a research note published on Thursday, Geoff Kendrick, the Global Head of Digital Assets Research at Standard Chartered, stated that Bitcoin's impressive rally has largely been driven by institutional investors. Many of these investors are turning to spot ETFs, further boosting demand for the cryptocurrency. Additionally, the company MicroStrategy, known for its extensive Bitcoin holdings, has been acquiring Bitcoin at a rapid pace.

Kendrick shared that by 2025, he expects institutional investments to continue at or even exceed the pace set in 2024. He noted that potential regulatory changes under President-elect Donald Trump could enhance these investment flows. With these factors in play, Kendrick believes that a Bitcoin price target of around $200,000 by the end of 2025 is within reach.

MicroStrategy has announced an ambitious plan to invest $42 billion in Bitcoin over the next three years, using funds sourced from both equity and debt. Kendrick emphasized that MicroStrategy is performing better than expected in its acquisition goals. Since the last election, the company has increased its Bitcoin holdings by 150,000, bringing its total to 402,100 Bitcoin, valued at over $40.5 billion.

In addition to MicroStrategy, Kendrick sees a growing trend of pension funds allocating capital to spot Bitcoin ETFs in 2025. Should U.S. retirement funds or international sovereign wealth funds also begin making significant allocations, Standard Chartered's outlook on Bitcoin prices could become even more optimistic.

Furthermore, Kendrick discussed the potential impact of establishing a U.S. strategic reserve of Bitcoin as part of Trump's future crypto initiatives, indicating it could create bullish sentiment for Bitcoin, although he regards this as a “low-probability” scenario.

On a related note, Coinbase CEO Brian Armstrong recently remarked that he believes "every government" should contemplate creating a Bitcoin strategic reserve.

While analysts like Kendrick focus on optimistic long-term price targets, others assess what the movement around the $100,000 price point means for the immediate future. Matt Mena, a strategist with 21Shares, highlighted $100,000 as a vital psychological threshold for Bitcoin. He noted that this milestone could encourage new investors to enter the market, many of whom have been waiting on the sidelines.

Conversely, Brent Kenwell, an investment analyst at eToro, suggested that current investors might choose to take profits once Bitcoin surpasses the $100,000 mark. He indicated that a pause in price would not be surprising given that Bitcoin has risen over 40% since the recent election.

Following a peak around $103,600, Bitcoin's price dropped to approximately $93,000 before regaining some ground. As of Friday afternoon, it had climbed back to around $102,000, maintaining a position above the $100,000 level.

Prior to this fluctuation, Lukman Otunuga, a Senior Market Analyst at FXTM, had predicted that a deeper pullback might happen, which turned out to be accurate. He noted that a robust weekly close above $100,000 could signal greater upward movement, while slipping below this critical point could lead bears to target $95,000.

This article has been edited for clarity.

Bitcoin, Market, Investment