Bitcoin Tops $100K Amid Volatility, Analysts Eye $200K by 2025

Bitcoin’s historic climb past $100,000 has sparked bold predictions, with some analysts forecasting the cryptocurrency could double in value by the end of 2025. The milestone marks a significant moment for the leading digital asset, but volatility persists as the market navigates both institutional enthusiasm and profit-taking.

Institutional Momentum Driving Bitcoin Rally

In a research note published Thursday, Geoff Kendrick, Standard Chartered’s Global Head of Digital Assets Research, attributed Bitcoin’s rally to surging institutional interest. Spot Bitcoin ETFs have seen strong inflows, while MicroStrategy has accelerated its Bitcoin acquisitions, positioning itself as a cornerstone of the market.

MicroStrategy, a self-proclaimed “Bitcoin development firm,” recently announced a $42 billion investment plan to acquire Bitcoin over three years. According to Kendrick, the company has been “running well ahead of schedule,” adding 150,000 BTC since Election Day and bringing its holdings to 402,100 BTC, valued at over $40.5 billion.

Kendrick expects institutional flows to maintain their momentum in 2025, driven by potential regulatory changes under President-elect Donald Trump. He set a $200,000 end-of-2025 price target for Bitcoin, citing the possibility of pension funds and sovereign wealth funds making significant allocations to spot Bitcoin ETFs.

The $100K Psychological Barrier

Bitcoin’s rise above $100,000 on Wednesday marked a major psychological milestone, but the breakthrough was short-lived. A sharp market correction saw the cryptocurrency dip below $93,000 on Thursday amid a surge in liquidations. By Saturday afternoon, Bitcoin had rebounded, trading above $100,000 as market participants assessed the asset’s trajectory.

Source: Bitcoin Liquid Index

Strategic Bitcoin Reserves?

Amid the rally, speculation has emerged about the U.S. government establishing a strategic Bitcoin reserve. Kendrick described such a move as “low probability” but noted it would be a bullish development for the market. Coinbase CEO Brian Armstrong echoed this sentiment, stating on X that “every government” should consider holding Bitcoin as a reserve asset.

Source: X

Stablecoins and Treasury Interest

The growing integration of digital assets into traditional finance was highlighted by recent endorsements of stablecoins from key policymakers. Both the U.S. Federal Reserve and the U.S. Treasury have emphasized stablecoins’ potential to reduce cross-border transaction costs and enhance the efficiency of Treasury markets. These developments further underline Bitcoin’s role in a broader shift toward digital asset adoption.

Source: TBAC