Fundstrat Global Advisors’ head of research, Tom Lee, has made another bold prediction for the crypto market. According to Lee, Bitcoin could reach an astonishing $250,000 by the end of 2025, representing a potential gain of approximately 150% from its current price.
Lee’s forecast is based on three key factors: the continued rise in demand for spot Bitcoin exchange-traded funds (ETFs), the decrease in newly minted Bitcoin due to the halving of block subsidies, and the falling interest rates. The approval of spot Bitcoin ETFs has made it easier for investors to add Bitcoin to their existing brokerage accounts, boosting demand among retail and institutional investors.
The success of these ETFs has been notable, with institutions allocating significant funds to them. In fact, crypto index fund manager Bitwise Asset Management’s chief investment officer, Matt Hougan, recently stated that Bitcoin ETFs are being adopted by institutions at the fastest rate in history.
Another factor contributing to Lee’s forecast is the halving of block subsidies, which limits the total supply of Bitcoin and decreases selling pressure. Historically, Bitcoin’s price has tended to peak one to two years after a halving event, with some notable instances occurring after previous events.
Lee also points out that interest rates are falling, making risk assets like Bitcoin more attractive. However, he cautions investors that Bitcoin is a highly volatile asset and predicts it could see a pullback in early 2025, potentially reaching $60,000 before increasing to $250,000 by the end of the year.
Ultimately, Lee emphasizes that no one can predict the future with certainty. While his forecast has been accurate in the past, investors should not invest in Bitcoin without being prepared for potential losses.
Source: https://www.fool.com/investing/2024/12/15/bitcoin-forecast-2025-from-analyst-predicted-2024