Bitcoin experienced a significant surge in 2024, more than doubling in value due to the approval of exchange-traded funds linked to its spot price by the U.S. markets regulator. This increase was further fueled by optimism surrounding the potential easing of regulatory challenges with Donald Trump’s anticipated return to the White House.
Earlier this month, the leading cryptocurrency reached the $100,000 mark, a landmark achievement that has invigorated enthusiasm among advocates of this previously emerging asset class.
A significant increase of over 120% in Bitcoin’s value this year, along with a nearly 50% rise in Ether, the second-largest cryptocurrency, has driven the market capitalization of the sector to approximately $3.5 trillion, as reported by CoinGecko. Analysts predict further growth in 2025.
Analysts from brokerage Bernstein expressed their belief that $100,000 is not the ultimate target for Bitcoin. They anticipate that the cryptocurrency will reach a peak of $200,000 by the end of 2025, as noted in a recent client communication.
“We expect bitcoin to emerge as the new-age premier ‘store of value’ asset eventually replacing gold over the next decade and becoming a permanent part of institutional multi-asset allocation and a standard for corporate treasury management,” the Bernstein note said.
A significant wave of optimism emerged in January when the U.S. Securities and Exchange Commission granted approval for the first exchange-traded funds (ETFs) designed to track the spot price of bitcoin, representing a pivotal moment for the wider cryptocurrency sector.
