Three Reasons Why Bitcoin Could Hit $200,000 By End of 2025
- Analysts predict that by the end of 2025, the value of Bitcoin will be between 180 and 250 thousand dollars.
- Exchange-traded funds (ETFs), the inclusion of 401(k) plans and corporate Treasuries are reducing supply.
- Historically, halving cycles point to a peak in late 2025.
Bitcoin is trading at $109,508, up 0.5% in the last 24 hours and down 3.6% in the last month. Despite the downtime, Bitcoin is up 88% year-to-date. Notably, Bitcoin set a new record in mid-August, surpassing $124,000, but has failed to hold it since.
Analysts predict that the price of the world's largest cryptocurrency could reach $200,000 by the end of the year, with forecasts ranging from $180,000 to $250,000. Price targets vary widely, from $145,000 under a conservative scenario to more than $1 million under extreme optimistic scenarios, but consensus points to three main growth drivers.
Institutional inflows reduce supply
The arrival of Bitcoin exchange-traded funds (ETFs) in the US in 2024 has sparked demand from institutional investors. ETFs alone could generate billions of dollars in inflows this year, pushing Bitcoin to $200,000-$250,000 by December, according to Standard Chartered.
Related : Bitcoin Rising: Peter Brandt Warns of Possible Pullback, Targets $200K
Corporate treasuries have also become a key driver of demand for Bitcoin. Public and private companies currently hold more than 7.09% of the total Bitcoin supply, or more than $100 billion. Notably, Strategy Inc., led by Michael Saylor, holds the largest amount of BTC among public companies: 632,457 BTC worth $69.2 billion, or about 3% of the total Bitcoin supply.
Notably, HC Wainwright & Co. raised its 2025 forecast from $145,000 to $225,000 following the U.S. election, citing an acceleration in cryptocurrency adoption by corporations and institutional investors via ETFs. Fundstrat’s Tom Lee echoed that view, forecasting a rise to $200,000 by the end of 2025, helped by a post-halving supply squeeze and increased global liquidity.
Clarity of regulation builds trust
Changes in regulation in the US have also strengthened Bitcoin’s investment appeal. The GENIUS Act, which went into effect in July 2025, created a federal regulatory framework for stablecoins. This reduces uncertainty and increases institutional comfort with digital assets.
In August, President Donald Trump issued an executive order allowing bitcoin and other cryptocurrencies to be included in 401(k) retirement plans, unlocking trillions of dollars in new wealth.
The SEC’s Project Crypto initiative is another important milestone. By modernizing the rules for issuing, storing, and settling securities using blockchain, the program could integrate much of Wall Street’s infrastructure with digital assets.
Bitwise Asset Management chief investment officer Matt Hougan said in April that the initiative's long-term impact would be significant, even if the immediate results were limited.
Halving cycles point to peak in late 2025
Bitcoin's supply is scheduled to halve roughly every four years, reducing the number of new coins entering circulation. Historical trends show that peaks typically occur 12 to 18 months after the halving. Following the April 2024 event, analysts see a statistically likely peak period of late 2025.
Related: Bitcoin Gold Rush: Big Institutions Hoard Bitcoins to Drive Adoption
Veteran trader Peter Brandt, based on an analysis of historical cycles, forecasts a trading peak in the $125,000 to $280,000 range by September 2025. Bitfinex sets a target of $145,000 to $200,000 by mid-2025, and Bernstein Research forecasts $200,000 by early 2026, citing stronger-than-expected ETF inflows.
Similarly, Robert Kiyosaki, author of Rich Dad Poor Dad, believes that Bitcoin will reach $250,000 by 2025 and become a hedge against the devaluation of fiat currencies.
In fact, despite differences in views, most institutional analysts agree on growth in late 2025.
Source: cryptonews.net
