Background and Reasoning
The forecast from Bitwise that Bitcoin could rise to 200,000 USD by the end of 2025 is one of many optimistic predictions in the cryptocurrency market. These predictions are based on several factors that could influence the market:
ETF Demand and Institutional Buys
Bitwise argues that the rising demand for Bitcoin ETFs (Exchange-Traded Funds) and increasing involvement from institutional investors could drive the price up. In 2024, ETFs have already purchased more than 100% of the new Bitcoin supply, indicating strong demand.
Pro-Crypto Policies
Supportive political measures could also contribute to a rise in Bitcoin’s price. These measures create a trustworthy environment for investors and promote the adoption of cryptocurrencies.
Structural Supply Scarcity
The limited availability of Bitcoin, combined with rising demand, could push the price even higher. This supply-demand relationship is a key factor in Bitcoin’s price formation.
Further Predictions and Opinions
Standard Chartered: This global bank has also issued a forecast of 200,000 USD for Bitcoin by the end of 2025. They justify this with ETF flows, corporate demand, and political tailwinds.
Other Experts: Analysts like Michael van de Poppe and Changpeng Zhao, the co-founder of Binance, even expect higher prices, with possible peaks at 300,000 to 1 million USD.
Relevance for Investors
For investors in the cryptocurrency market, such predictions are of great importance, as they can influence the potential return and risk of investing in Bitcoin. However, it is crucial for investors to conduct their own research and not rely solely on predictions, as the cryptocurrency market is known for its volatility.
Overall, these forecasts reflect the optimistic sentiment in the cryptocurrency market, driven by institutional investments, political support, and the limited availability of Bitcoin.