Prediction: Bitcoin will reach $100,000 in 2025

Because prices plummeted by 65% ​​in 2022 Bitcoin (BTC 0.11%) I came back in a flash. Last year, it soared 154%, driven by strong gains in the overall cryptocurrency and stock markets.

Bitcoin remains priced at just over $43,000 as of February 1, well below its November 2021 high of $69,000. The world’s most valuable cryptocurrency.

I think Bitcoin will reach $100,000 around 2025. Let’s take a closer look at why.

Bitcoin’s Best Features

I think it’s important to first understand what makes Bitcoin special. Yes, this is a cryptocurrency. But it stands out among tens of thousands because it is truly decentralized and not controlled by a single entity or group. This is it Securities and Exchange Commission (SEC) has already stated that Bitcoin is not a security like a stock, but a commodity like wheat or gold.

Bitcoin can be compared to gold, like stocks, or fiat currencies, like the US dollar. apologize or tesla inventory. However, Bitcoin has far superior value retention characteristics.

First of all, Bitcoin is more portable, divisible, and tradable than gold. And more importantly, there are only 21 million coins in circulation. This makes it absolutely finite. Gold, long considered the best store of value, could see a surge in supply if demand surges. Bitcoin’s inflation rate, on the other hand, is already predetermined. Demand cannot affect supply.

By comparison, the shortage of US dollars is glaringly obvious. Fiat currencies are controlled by central banks, which helps explain why the money supply has skyrocketed over the past decade, but no central authority can change how Bitcoin operates. And this makes it an attractive asset that is not subject to constant money printing and interest rate adjustments.

Bitcoin’s catalyst

Earlier this year, the SEC approved numerous positions. Bitcoin exchange traded fund, This is a highly anticipated event. From that day on January 10th to the evening of February 1st, the price of Bitcoin fell 8%. Short-term price declines distract from more important topics.

In the world of traditional financial institutions, Bitcoin has become a legitimate asset. It has received the SEC’s stamp of approval, and there is now an easy way for both individual and institutional investors to gain exposure to Bitcoin. This seems like a positive development.

However, the most important thing to watch in the short term is the halving scheduled for April. Halvings that occur every four years reduce rewards. mine worker Get transaction approval in half. Historically, Bitcoin has benefited from intense bull markets in the months leading up to and following the halving.

It is said. A decrease in new supply leads to an increase in demand, which, according to basic economic theory, causes prices to rise.

There are many reasons to evaluate Bitcoin. With a current market capitalization of $844 billion, it has some interesting characteristics that make it easy to understand why it has become one of the best-performing assets of the past decade. However, I believe the upcoming halving will be a major catalyst for Bitcoin’s continued strength.

And it is entirely reasonable for Bitcoin to hit a new all-time high and break the six-figure mark of $100,000 by the end of 2025. All the stars are aligned.