US asset management company VanEck released a research report, reiterating its optimistic outlook on Bitcoin, believing that Bitcoin is expected to rise to $180,000 before the end of this year, and mentioned that institutional funds are becoming the biggest engine driving the market.
VanEck, one of the major Bitcoin spot ETF issuers, has long been deeply involved in cryptocurrency market research. The company predicted in its report that Bitcoin may experience a 30% price correction this summer before moving towards its target of $180,000:
As autumn approaches, overall economic variables and the pace of investors re-entering the market are expected to continue the bullish momentum of Bitcoin, but may also trigger profit-taking selling pressure.
Despite this, we maintain our year-end price target for Bitcoin at $180,000.
VanEck emphasized that it was no accident that Bitcoin hit a new record high last week, because before the market broke through, about 92% of Bitcoin holding addresses were already in a profitable state, indicating that most investors have a solid financial safety cushion, which supports market confidence.
Furthermore, corporate and institutional funds continue to pour in. Even though Ethereum has recently attracted considerable institutional interest, Bitcoin continues to benefit from continued investment from large funds. Strategy's long-term investment has further boosted market trust.
Despite the generally optimistic tone of the report, VanEck still raised several concerns:
Bitcoin's on-chain dominance is declining: As the popularity of Ordinals has waned, Bitcoin's on-chain dominance has been significantly eroded by Ethereum.
Mining difficulty hits new highs: The difficulty of Bitcoin mining has repeatedly hit new highs, but miners' profits remain strong, especially as US mining companies are gradually increasing their share of computing power.
Low volatility: VanEck warned that if Bitcoin maintains low volatility for a long time, it may weaken the financial leverage of Bitcoin Reserve Company, increase fundraising difficulties, and suppress buying.
Looking further into the future, VanEck predicts Bitcoin will experience substantial long-term growth, potentially climbing to $2.9 million by 2050.
The article "VanEck Maintains its Year-End Price Target of $180,000 at Bitcoin" was originally published on Blockchain.
