Bitrabo Editorial
Analysts from Bernstein, a research firm specializing in institutional-grade insights, assert that predicting Bitcoin (BTC) to reach $200,000 by the end of 2025 is a “conservative” estimate.
Could Bitcoin Hit $200,000 by 2025?
Despite Bitcoin currently fluctuating below its all-time high of $73,737, Bernstein analysts believe that their forecast of $200,000 for the cryptocurrency by the conclusion of 2025 is on the lower end of possibilities.
In a communication to clients, analyst Gautam Chhugani stated, “Bitcoin is going to $200,000 this cycle,” underscoring the importance of its capped supply of 21 million coins, especially as U.S. debt levels continue to rise. He added:
For Bitcoin skeptics, a limited supply digital asset serving as a ‘store of value’ might not seem so unfounded, particularly as U.S. debt reaches unprecedented heights ($35 trillion now) and inflationary threats persist. If you’re bullish on gold, Bitcoin should appeal even more.
Chhugani also recommended that investors hesitant to invest directly in BTC could consider companies like MicroStrategy or Robinhood to gain indirect exposure to Bitcoin’s price movements.
The increasing interest from institutional investors in Bitcoin exchange-traded funds (ETFs) further supports the likelihood of a Bitcoin rise in the near future.
Recently, JP Morgan reported holding $272 million in Bitcoin ETFs as of the end of Q3 2024 in a filing with the U.S. Securities and Exchange Commission (SEC). Currently, the total net inflow into U.S.-based spot BTC ETFs has reached $21.15 billion, based on data from SoSoValue.
Indicators Favor a Potential BTC Surge
While Bitcoin ETFs are drawing institutional investments, various other indicators also suggest a mounting possibility of a Bitcoin surge as the year concludes.
For instance, Bitcoin’s mining difficulty recently climbed to 95.67 terahashes, reflecting a 3.9% increment on October 22. Over the year, mining difficulty has increased by approximately 30%, rising from 72 terahashes to over 95 terahashes.
Additionally, the Bitcoin mining hashrate has recently reached a new all-time high of 700 exahashes per second (EH/s).
To clarify, exahashes are units used to gauge the computing power required for mining and documenting transactions on a blockchain that employs a proof-of-work (PoW) consensus model.
An upward trend in both Bitcoin mining difficulty and hashrate generally signals long-term optimism for BTC, indicating enhanced network security and escalating confidence among miners regarding future profitability—both indicative of robust demand for the cryptocurrency.
Moreover, a recent analysis highlighted a significant increase in Bitcoin holdings among ‘accumulation addresses,’ indicating that long-term investors are consistently acquiring Bitcoin to capitalize on anticipated price growth.
Yet, Bitcoin still faces challenges in decisively overcoming the critical $70,000 resistance hurdle. As of now, BTC is valued at $66,000, having decreased by 2.2% in the past 24 hours.