Bitcoin (BTCUSD) Price Predictions See Room to Run in 2025 Despite Volatility Concerns

Bitcoin (BTCUSD) has had a strong 2024, climbing past many price milestones—including $100,000—as a confluence of factors drove up investor confidence in the leading cryptocurrency.

Bitcoin (BTCUSD) had a stellar 2024, with several price milestones crossed—including $100,000—as a confluence of factors drove up investor confidence in the leading cryptocurrency.

It began with demand for spot bitcoin exchange-traded funds (ETFs) that started trading in January, followed by the excitement of a halving that limited the supply of new bitcoin and then the hope for crypto-supportive policies after the reelection of Donald Trump, which seemed to be reinforced by several of his post-election appointments.

While the Federal Reserve's latest projections for cutting interest rates next year shook the crypto markets, some of the abovementioned optimism remained on the table—though if the Fed slows its rate-cutting campaign, experts say, Treasury yields could remain elevated, shifting investors away from bitcoin and other risk assets.

Hence, some analysts are still bullish on bitcoin—but warn of volatility ahead.

Analysts See More Room to Run for Bitcoin

Prior to the Fed meeting shock, digital asset manager Bitwise's predictions for 2025 pegged bitcoin rising above $200,000 for the first time. That number rises to $500,000 if the federal government adopts Senator Cynthia Lummis' plan of buying 1 million bitcoin for a "strategic bitcoin reserve."

President-elect Trump has also supported the idea of a bitcoin strategic reserve, but there is little clarity on how much bitcoin the government could hold, whether it would add to its existing holdings or what the purpose of such a reserve would be.

Standard Chartered analysts have a similar price expectation for bitcoin, and they agree with Bitwise on projecting that inflows for spot bitcoin ETFs in 2025 will remain at levels seen this year. These funds hold bitcoin as the underlying security and need to purchase it as investors pour money into them. So far this year, bitcoin ETFs have seen net inflows of more than $36 billion, according to data from Farside Investors.

And finally, analysts are bullish, but to a lesser extent, at VanEck. They expect bitcoin prices to reach a high of $180,000 in 2025 with volatility throughout: They see bitcoin prices falling by roughly a third (30%) after touching new highs earlier in the year, followed by a period of consolidation during the summer before a peak toward year-end.

At last check, bitcoin was trading around $95,000, with the total market cap of cryptocurrency standing at around $3.26 trillion.