In A Report Published on December 17, analysts at cryptocurrency exchange Bitfinex said a combination of rising institutional adoption of Bitcoin (BTC) and bullish technical indicators could propel the leading cryptocurrency to $200,000 by mid-2025. The report also predicts that any price corrections through 2025 are likely to be ‘modest’.
Bitcoin pullbacks will be mild in 2025
Earlier this month, Bitcoin surpassed the psychologically important $100,000 price level, pushing its total market capitalization slightly above $2 trillion at the time of writing. However, according to the latest version of the Bitfinex Alpha Report, BTC still has the potential to rise in 2025.
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The report highlights several technical indicators, including market value-to-realized value (MVRV), net unrealized profit/loss (NUPL), and bull-bear market cycle indicators, which collectively suggest that the market Still showing bullish momentum and far from hitting. Peaks of happiness
According to Bitfinex analysts, while diminishing returns could upset bitcoin’s extraordinary gains seen in previous cycles, the cryptocurrency could still reach $200,000 under ‘favorable conditions’. The report says:
We think any correction in 2025 will be mild, due to institutional flows. Historically, the years after the halving have seen the strongest rallies. The minimum price is estimated at $145,000 by mid-2025, potentially expanding to $200,000 under favorable conditions.
In fact, institutional flows into bitcoin through exchange-traded funds (ETFs) have shown a steady upward trend, particularly since Donald Trump’s victory in the November presidential election. A fresh one analysis revealed that a US spot ETF now holds more BTC than the wallet of Bitcoin’s eponymous creator, Satoshi Nakamoto.
While the report presents a strong long-term bullish case, it warns that some price volatility may emerge during Q1 2025. However, this pullback is expected to be mild and short-lived. The report also notes that Bitcoin’s post-halving price corrections are shrinking in size with each cycle:
In previous cycles, once Bitcoin entered price discovery after the halving, corrections were relatively contained before reversals to new ATHs. In the 2017 cycle, the maximum improvement was 33.2 percent, while the 2020 cycle saw a slightly smaller improvement of 27.1 percent.
Strategic reserve can increase BTC profits
A unique factor in this bitcoin cycle is the speculation surrounding the potential establishment of a US strategic bitcoin reserve. Such a reserve could drive bitcoin prices into the seven-figure range, according to To Adam Back, CEO of Blockstream.
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Matt Haugen, chief investment officer at asset management firm Bitwise, recently noted That building a strategic BTC reserve can increase the value of the asset by $500,000. expert faith That if the US establishes a BTC reserve, other nations are likely to follow suit, creating a domino effect that could lead to significant price increases.
In related news, Japanese MP Satoshi Hamada swam Japan’s idea of creating its own strategic BTC reserve. At press time, BTC is trading at $103,953, down 3.7% in the last 24 hours.
Featured image from Unsplash, chart from TradingView.com
