Bitcoin’s $200,000 by 2025: Analyst Calls It Conservative Target

As per the research conducted by the institutional-grade firm Bernstein, analysts suggest that a target of $200,000 for Bitcoin (BTC) by the end of 2025 is considered a “conservative” forecast.

Could Bitcoin Reach $200,000 by the Close of 2025?

Despite BTC hovering just below its highest ever value of $73,737, Bernstein analysts are confident that their price projection of $200,000 for the cryptocurrency by the end of 2025 is reasonable.

In a memo shared today, Bernstein analyst Gautam Chhugani stated, “Bitcoin is set to reach $200,000 this cycle,” highlighting the importance of the asset’s maximum supply of 21 million, especially given the rising US debt levels. He further noted:

For Bitcoin skeptics, a limited supply ‘store of value’ digital asset may not seem like a bad option amidst the rising U.S debt ($35 trillion presently) and persistent inflation threats. If you favor gold, you should find Bitcoin even more appealing.

Chhugani also mentioned that investors who are not yet ready to buy BTC directly might consider investing in companies like MicroStrategy or Robinhood to gain indirect exposure to the asset’s price movements.

The escalating institutional interest in Bitcoin exchange-traded funds (ETFs) further bolsters the argument for a possible BTC surge in the near future.

In a recent submission to the US Securities and Exchange Commission (SEC), JP Morgan reported $272 million in BTC ETF assets at the conclusion of Q3 2024. Currently, the total net inflow for spot BTC ETFs in the US has reached $21.15 billion, based on data from SoSoValue.

Multiple Indicators Suggest a Possible BTC Surge

While Bitcoin ETFs draw institutional investments, several additional metrics indicate a potential for a BTC rally as we approach the year’s end.

For instance, Bitcoin’s mining difficulty recently escalated to 95.67 terahashes, reflecting a 3.9% rise on October 22. So far this year, mining difficulty has climbed approximately 30%, increasing from 72 terahashes earlier this year to over 95 terahashes.

In addition, the Bitcoin mining hashrate recently reached a new all-time high of 700 exahashes per second (EH/s).

For those who may not know, exahashes quantify the computational power necessary to mine and verify transactions on a blockchain using a proof-of-work (PoW) consensus mechanism.

An increase in Bitcoin’s mining difficulty and hashrate is generally seen as a long-term positive for BTC, as it reflects stronger network security and growing confidence among miners regarding future profitability – both indicators of healthy demand for the asset.

Furthermore, a recent report highlighted a significant uptick in BTC holdings within ‘accumulation addresses,’ suggesting that long-term investors are continuing to acquire digital assets in anticipation of future price increases.

Nevertheless, Bitcoin is yet to decisively surpass the crucial psychological resistance level of $70,000. As of now, BTC is trading at $66,000, reflecting a 2.2% decline over the last 24 hours.