Bitcoin To Hit $225,000 By EOY, Says Venerable Investment Bank
among newly released investors notesHC Wainwright & Co., one of the oldest investment banks in the United States (founded in 1868), expects Bitcoin prices to rise significantly. According to the report, the agency has revised its previous Bitcoin price target for the end of 2025 from $145,000 to $225,000, taking into account historical trends, macroeconomic indicators, and emerging regulatory and institutional factors.
“We expect BTC to reach cycle highs of $225,000 by 2025,” the firm said, referring to market cycles and the potential for a more supportive digital asset regulatory environment in the United States under a new administration in 2025.
Why Bitcoin could hit $225,000 by the end of the year
HC Wainwright’s analysis highlights several key forces driving Bitcoin’s growth trajectory. An important catalyst is the widespread use of spot Bitcoin exchange-traded funds (ETFs) in the United States, a development that could unleash a new wave of institutional capital. The company also cited “accelerating adoption by institutional investors and corporates” as a major contributor to its bullish outlook.
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On top of that, the investment bank’s model assumes that the overall market backdrop improves as global liquidity improves, and that any regulatory overhang is mitigated. HC Wainwright cautioned that the forecast was sensitive to macroeconomic conditions, particularly by measuring M2 money supplySince October, there has been a downward trend.
Despite predictions that Bitcoin prices will reach six figures by 2025, HC Wainwright admitted that Bitcoin’s road to $225,000 is unlikely to be smooth sailing. The bank warned in the report: “Withdrawals during the period were approximately 20-30% bull market This is not uncommon (…) We estimate that BTC may fall back to the mid-$70,000 range by early Q1’25 before resuming the uptrend. “
They attribute these possible pullbacks to Bitcoin’s historical volatility and its correlation with global liquidity trends.
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If Bitcoin reaches $225,000 per coin, HC Wainwright expects the total market value of Bitcoin to be approximately $4.5 trillion, approximately 25% of gold’s current market value of $18 trillion. This scenario would imply a 113% increase from current levels. However, the report adds a compelling case that has not yet been incorporated into its core predictions:
“Our new 2025 price target does not take into account the possibility that the U.S. government will formally adopt BTC as a federal reserve asset next year. If implemented, we believe BTC could significantly exceed our base case price target.”
The agency’s analysis also extends to the broader cryptocurrency market. Historically, Bitcoin Dominance (share of total cryptocurrency market capitalization) It tends to fall during market peaks and hit a low of 40% near the peak of the last bull cycle in November 2021.
Looking forward, HC Wainwright expects Bitcoin’s dominance to drop from around 56% currently to 45% by the end of 2025. Under this assumption, the company expects the total cryptocurrency market to expand from the current $3.6 trillion to approximately $10 trillion by the end of 2025.
Publicly traded Bitcoin mining companies covered by HC Wainwright are set to benefit from the expected price surge. “If our forecasts are correct, there is potential for a significant upgrade in our coverage next year.”
At press time, BTC was trading at $96,221.
Featured image created using DALL.E, chart from TradingView.com
