In a report published on December 17, analysts at cryptocurrency exchange Bitfinex said that a combination of increasing Bitcoin (BTC) adoption and bullish technical indicators could push the major cryptocurrency as high as $200,000 by mid-2025. The report also predicts that any price corrections in 2025 are likely to remain 'mild'.
Bitcoin withdrawal to be mild in 2025
Earlier this month, Bitcoin crossed the psychologically significant $100,000 price level, pushing its total market capitalization to just over $2 trillion at the time of writing. However, according to the latest edition of the Bitfinex Alpha report, BTC still has great potential for growth by 2025.
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The report highlights several technical indicators, including market value to proven value (MVRV), net unrealized profit/loss (NUPL), and a bear market cycle indicator, which together suggest that the market still shows bullish momentum and far from crashing. euphoric peaks.
According to Bitfinex analysts, although a decrease in the yield could see the incredible growth of Bitcoin in previous cycles, the cryptocurrency could still reach $200,000 under 'favorable conditions.' The report says:
Our view is that any corrections in 2025 will remain mild, thanks to institutional inflows. Historically, the strongest rallies have been seen in the years after fifty. Minimum price estimates stand at $145,000 by mid-2025, possibly stretching to $200,000 under favorable conditions.
Indeed, institutional inflows into Bitcoin through exchange-traded funds (ETFs) have shown a steady upward trajectory, especially after Donald Trump's victory in the November presidential election. Recently analysis revealed that the US spot ETF now holds more BTC than the wallet of Bitcoin's pseudonymous creator, Satoshi Nakamoto.
While the report projects a strong long-term bullish case, it warns that some price volatility could emerge in Q1 2025. But these pullbacks are expected to be mild and short-lived . The report also notes that Bitcoin's post-halving price corrections have been shrinking in size with each cycle:
In previous cycles, once Bitcoin entered post-halving price discovery, corrections prior to reversals to new ATHs were relatively limited. In the 2017 cycle, the highest correction was 33.2 percent, while the 2020 cycle saw a slightly smaller correction of 27.1 percent.
Strategic Reserve Can Extend BTC Profits
One notable feature in this Bitcoin cycle is the speculation about establishing a strategic Bitcoin reserve for the US. Such a reserve could propel Bitcoin prices into the seven-figure range, according to to Blockstream CEO Adam Back.
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Matt Hougan, Chief Investment Officer at asset management firm Bitwise, recently was noted that the creation of a BTC strategic reserve could move the price of the asset to $500,000. Experts believe if the US establishes a BTC reserve, other countries are likely to follow suit, creating a domino effect that could significantly increase prices.
In related news, Japanese Member of Parliament Satoshi Hamada launched the idea of Japan creating its own BTC strategic reserve. At press time, BTC is trading at $103,953, down 3.7% in the past 24 hours.
Featured image from Unsplash, Chart from TradingView.com
