H.C. Wainwright has raised its price target on bitcoin (BTC) to $225,000, citing regulatory clarity and institutional adoption as key drivers for the cryptocurrency’s potential upside. The firm now estimates that BTC will reach this price by the end of 2025.
According to analyst Mike Colonnese, the new price target implies a total market cap of $4.5 trillion, which would represent about 25% of gold’s total market cap. However, Colonnese also cautioned that investors should brace for some volatility in the weeks ahead, as bitcoin’s price action has historically been highly correlated to global liquidity.
The analyst estimates that BTC could retrace back down to the mid-$70,000 range in early Q1 2025 before resuming its uptrend. Meanwhile, a national strategic bitcoin reserve in the US could significantly drive up the price of the asset, with H.C. Wainwright assigning a 60% likelihood to this event occurring by year’s end.
Regulatory clarity and institutional adoption are seen as key factors that will drive further investment in bitcoin from advisor allocations and public companies adding the cryptocurrency to their treasuries. The upcoming year is expected to be another banner year for crypto, with Congress potentially providing long-awaited crypto-focused legislation.
Source: https://www.cnbc.com/2025/01/02/regulatory-clarity-could-drive-bitcoin-to-225000-this-year-says-hc-wainwright.html