Bitcoin (BTC), which experienced a major rally after the election of Donald Trump, recently exceeded the critical threshold of $100,000.
While analysts expect the Bitcoin price to continue rising, Matrixport analysts said they expect the Bitcoin price to reach $160,000 by 2025.
Matrixport noted that Bitcoin’s recent rally is driven by factors such as rising ETF inflows, increasing institutional adoption, regulatory clarity, speculation, and expanding use cases.
“As Bitcoin gains mainstream acceptance, it is transforming from a niche asset to a core asset in global financial markets. Market dynamics are changing.
Unlike past cycles characterized by sharp -80% declines, Bitcoin’s growing bottom buyers and institutional support base reduce the likelihood of serious corrections.
At this point, we predict that Bitcoin could reach $160,000 in 2025, which has a 60% upside potential.
This goal aligns with the continued demand for Bitcoin ETFs, the macroeconomic environment, and expanding global liquidity.”
Analysts said the outlook for 2025 remains bullish, adding that Bitcoin's proven resilience, role as a hedge against inflation, and integration into institutional portfolios suggest the year ahead will be unique.
Matrixport lastly stated that Bitcoin has proven to be a tremendous choice for diversified portfolios in 2024, and said that they recommend a 1.55% allocation in BTC to achieve optimum diversification while maintaining portfolio stability.
*This is not investment advice.
