Bitcoin Breaks Through $100,000 Barrier: Analysts Foresee Continued Surge
The recent climb of Bitcoin (BTC-USD) past the $100,000 threshold has reignited excitement among Wall Street investors, who are now anticipating significant price surges in the near future. Following the election victory of Donald Trump and the optimism surrounding a more favorable regulatory landscape for cryptocurrencies, Bitcoin shattered previous records this week, skyrocketing to an unprecedented high above $103,000. Analysts are now bullish on the prospect of its value potentially doubling by the end of next year.
In a recent report, Gautam Chhugani, an analyst at Bernstein, expressed his belief in the immense potential of Bitcoin, stating that the achievement of $100,000 is merely a beginning. Chhugani confidently predicts that Bitcoin could soar to $200,000 by late 2025, driven in part by Trump’s appointment of crypto supporter Paul Atkins as the chair of the Securities and Exchange Commission (SEC). According to Chhugani, this leadership change, coupled with a expected shift towards more lenient regulatory policies, bodes extremely well for the wider cryptocurrency market.
In the aftermath of the election, Trump also signaled his support for cryptocurrency investors through a social media post proclaiming, “YOU’RE WELCOME!!!” This gesture underscores the increasing acceptance of digital currencies in political circles and signifies a notable shift towards institutional backing.
Chhugani further explained, “As cryptocurrencies gain traction in mainstream finance, they are positioned to reshape global capital markets and revolutionize financial service delivery on a global scale.” He asserts that Bitcoin could potentially establish itself as the primary “store of value” asset, potentially surpassing gold in the next decade and solidifying its role in institutional portfolios and corporate treasury management.
Analysts at Standard Chartered have observed a significant uptick in institutional investment in Bitcoin this year. Institutional investors have acquired around 683,000 tokens via spot exchange-traded funds (ETFs) since the beginning of the year, with considerable contributions from major entities like MicroStrategy (MSTR). Post-election, approximately 245,000 bitcoins have been acquired, indicating a substantial surge in demand. Geoff Kendrick, the global head of digital assets research at Standard Chartered, foresees this trend continuing through 2025, especially with the expected expansion of spot ETF holdings by global pension funds in response to regulatory modifications under the Trump administration. Given these conditions, Kendrick believes that reaching a target of about $200,000 for Bitcoin by the end of 2025 is achievable.
With Bitcoin experiencing an impressive nearly 130% rally this year and growing by approximately 45% since Trump’s victory, market optimism remains high. The impending exit of SEC Chair Gary Gensler, effective January 20, 2025, has further buoyed investor confidence.
Mark Palmer, a senior research analyst at Benchmark, also envisions a notable price surge, forecasting that Bitcoin could climb to $225,000 by the conclusion of 2026. He underscores the significant shift in regulatory attitudes, contrasting the current favorable environment with the hostile stance regulators previously held towards digital currencies. This positivity continues to attract investors, with many identifying market dips as opportunities to enter the market.
Although Bitcoin saw a slight 7% dip early Friday to $92,144, it swiftly rebounded to around $97,851. Looking ahead to 2024, analysts at Fundstrat have set a year-end target of $115,000 for Bitcoin, with the head of digital asset strategy, Sean Farrell, expressing confidence that this mark will likely be surpassed soon. He commented, “I believe we will probably exceed that in the next couple of weeks, possibly reaching up to $120,000,” noting that numerous structural advantages will sustain the ongoing upward trend.
In conclusion, Bitcoin’s surge past the $100,000 milestone has reignited optimism on Wall Street, with experts forecasting substantial future growth driven by positive regulatory changes and increasing institutional engagement. As the cryptocurrency market evolves, both individual and institutional investors appear ready to leverage this pivotal moment.
