Analysts predict Bitcoin will reach $200,000 by the end of 2025 thanks to several positive driving factors. David Duong from Coinbase Research believes "the overall picture will be clearer and more constructive than at any point in the last 6 to 12 months."
Key drivers
Crypto-friendly policies from the Trump administration: President Donald Trump issued several executive orders encouraging regulators to cease enforcement actions against crypto companies and supported bills like the Genius Act and Clarity Act to provide clarity on digital asset regulation, making it easier for financial institutions to hold #bitcoin .
The rise of Stablecoin: The stablecoin market has surpassed $255 billion. The success of Circle's IPO, the integration of stablecoins by PayPal and Stripe, along with pending bills, is driving the development of stablecoins as a cost-effective alternative to the traditional financial system.
Interest rate cuts from the FED: Traders predict the Federal Reserve will cut interest rates in the next 6 months. Lower interest rates encourage investors to shift to riskier assets like cryptocurrencies, adding liquidity to the market.
Market participation pension funds: Cryptocurrency is becoming an investment target for traditional investors, especially pension funds and sovereign wealth funds. This interest is clearly reflected in the net inflow of $15.7 billion into U.S. spot Bitcoin ETFs this year.
Trend of companies buying Bitcoin for treasury: Large companies are following the lead of Strategy (MicroStrategy) to add Bitcoin to their treasuries. There are currently over 250 companies that have accumulated Bitcoin, indicating this trend may accelerate in the second half of the year, attracting more institutional investors through the stocks of these companies.
Bitcoin is currently trading at around $108,000, just under 3% away from the previous all-time high.