What to Know:
- Bitcoin could reach a new all-time high of $150,000 by the end of 2025, says Charles Edwards, founder of Capriole Investments.
- Inclusion of crypto in US 401(k) retirement plans could unlock $122 billion in new capital, potentially lifting Bitcoin above $200,000 before year-end.
- Historical trends, institutional buying, and technical chart patterns signal a bullish end of the year for Bitcoin.
Bitcoin, the leading cryptocurrency, may ascend to unprecedented heights according to industry experts. The founder of Capriole Investments, Charles Edwards, predicts that Bitcoin could surge to a new all-time high of $150,000 by the end of 2025, as investors increasingly view it as a safe-haven asset, akin to gold.
In a recent interview at Token2049 in Singapore, Edwards emphasized that Bitcoin’s recovery beyond the $120,000 psychological mark could instigate a rapid breakout to a $150,000 all-time high. He further projected that such a shift could occur in the coming days, a bullish sentiment backed by Bitcoin’s recent performance, which witnessed an increase of over 6% in the past week, with the price exceeding the $118,500 mark for the first time since August 15.
Edwards’ perspective is comparatively restrained compared to other market analysts, some of whom believe that the current cycle could propel Bitcoin beyond $200,000. André Dragosch, Head of European Research at Bitwise Asset Management, envisages a significant influx of capital into the crypto market following the inclusion of cryptocurrencies in US 401(k) retirement plans. According to Dragosch, even a modest 1% allocation by retirement managers could drive Bitcoin’s price above $200,000 before the end of this year.
Moreover, Edwards foresees a “just over 50%” likelihood of the crypto market experiencing three months of positive upward momentum to conclude the year. He maintains that the crypto market’s four-year cycle theory remains pertinent and could be “self-fulfilling” as investors exercise caution in anticipation of market cyclicality.
However, he cautioned that this optimistic forecast heavily relies on sustained institutional buying. A decline in such activity could significantly alter his outlook. Bitcoin’s historically bullish performance during the last quarter of the year, with average historical monthly returns of around 20% in October, 46% in November, and about 4% in December, according to CoinGlass data, lends credence to Edwards’ predictions.
Other market analysts echo Edwards’ bullish sentiment, pointing to technical chart patterns, including an emerging golden cross pattern, that may result in Bitcoin hitting a price target of approximately $150,000 in Q4 of this year.
In conclusion, the crypto market, especially Bitcoin, looks set for a bullish end to the year. With potential triggers such as the inclusion of crypto in 401(k) plans and continued institutional adoption, there is significant room for optimism. However, investors should keep a close watch on institutional buying trends, as they could greatly influence the market’s trajectory.
