Author: Ciaran Lyons, CoinTelegraph; Compiled by Wuzhu, Jinse Finance
Bitfinex analysts say that due to strong institutional demand, the Bitcoin price drop in 2025 will be temporary, and they predict that the Bitcoin price will double by June 2025.
Bitfinex analysts stated in a market report on December 17 that their estimate of the lowest price "will reach $145,000 by mid-2025, and could reach $200,000 if conditions are favorable."
Bitcoin volatility expected in the first quarter
The analysts said: "Due to the inflow of institutional funds, any adjustments in 2025 will remain moderate." They pointed out that while Bitcoin is expected to experience volatility in the first quarter of 2025, the broader trend indicates that the price will continue to grow, driven by the continued inflow of spot Bitcoin ETFs and increased global and institutional adoption.
Data from Farside Investors shows that since its launch in January, about $36 billion has flowed into US spot Bitcoin ETFs.
The analysts said: "BTC ETFs are one of the largest Bitcoin holder groups, holding over 1.13 million Bitcoins."
At the time of publication, the trading price of Bitcoin was $105,360. Source: CoinMarketCap
At the time of publication, the trading price of Bitcoin was $105,360, and Nic Carter, a partner at Castle Island Ventures, said that in the long run, the price of Bitcoin could grow by nearly 9 times.
Carter said in an interview with Bloomberg TV on December 17: "In the long run, I hope Bitcoin can catch up with the market capitalization of gold, at which point the price of Bitcoin will reach $900,000."
Bitcoin author Andy Edstrom said on December 16 that he has "a hard time getting used to the fact that $1,000 is less than 1% of Bitcoin's price fluctuation."
Bitfinex analysts said that if Bitcoin reflects the cycle of 2021, it could "reach around $339,000" by rising about 40% above its moving average.
They said: "In the unlikely event that the extended cycle of 2017 is repeated with similar diminishing returns, Bitcoin could reach a peak of around $290,000 in early 2026."
US Bitcoin reserves could change the narrative
Meanwhile, the incoming Trump administration may establish a Bitcoin strategic reserve in the US, which has the crypto industry speculating that the market narrative may enter uncharted territory.
"If a country implements a Bitcoin strategic reserve, you can say goodbye to your four-year cycle," crypto analyst Tyler Durden said in an article on December 17.
After Donald Trump won the election on November 5, pro-crypto Senator Cynthia Lummis said she would push for legislation for the US government to purchase Bitcoin and hold it for at least 20 years.
