Bitwise, a cryptocurrency asset management company, predicts that the price of Bitcoin will **break the $200,000 mark by the end of 2025**. This prediction is based on several key factors, such as increasing institutional demand, the launch of more Bitcoin ETFs, and the reduction in Bitcoin supply due to the halving that will occur in April 2024.
According to Matt Hougan and Ryan Rasmussen from Bitwise, the imbalance between the limited supply of Bitcoin—around 165,000 new coins per year—and the continually increasing demand from institutions, governments, and ETFs is the main driver of the price increase. Additionally, the risks of inflation and fiscal deficits in the US also strengthen Bitcoin's position as a hedge asset.
Bitwise also highlights the potential rise of Ethereum to $7,000 and Solana to $750 by 2025, supported by the growth of activity in the Ethereum Layer-2 network and the expansion of stablecoins.
If the US government realizes its plan to create a strategic Bitcoin reserve, the price of BTC could even soar to $500,000 in the coming years.
With these various catalysts, 2025 is predicted to be a significant year for the crypto world, especially for Bitcoin, which has the potential to redefine the future of digital assets globally.