H.C. Wainwright analysts predict that Bitcoin could reach $225,000 by the end of 2025.

This new forecast is significantly above the previously announced target of $145,000 and reflects the expectation that Bitcoin's role in the global financial system will continue to strengthen.

At the core of this optimism lies the maturation in the regulatory environment, institutional adoption, and positive changes in market dynamics. In particular, the crypto-friendly administration formed after the 2024 US presidential elections has created a great optimism in the sector. Experts believe that this could allow for the entry of more institutional investors into the sector.

The success of Spot Bitcoin ETFs

The success of spot Bitcoin exchange-traded funds (ETFs) launched in the US in 2024 significantly increased the demand for Bitcoin. These ETFs, with significant assets, accelerated the adoption of Bitcoin. According to H.C. Wainwright, Bitcoin's total market value could reach $4.5 trillion by the end of 2025, equivalent to 25% of the total market value of gold.

Halving and digital gold

The fourth halving event of Bitcoin, which took place in April 2024, further restricted the supply of BTC and strengthened its deflationary nature. This situation made Bitcoin more attractive as a store of value, solidifying its status as digital gold. At the same time, the increased integration of Bitcoin into corporate treasury reserves and investment portfolios expanded the acceptance of both individual and institutional investors.

The altcoin market can also grow

H.C. Wainwright analysts expect the total cryptocurrency market value to reach $10 trillion by 2025. However, this growth could cause Bitcoin's market dominance to drop from 56% to 45%, a trend often seen at cryptocurrency market peaks.

H.C. Wainwright analysts are warning that the market may be volatile. Analysts, who point out that 20-30% corrections are common during bull markets, indicate that Bitcoin is still in the early stages of its four-year price cycle.