Michaela
Mike Colonnese, an analyst at the investment bank and research firm H.C. Wainwright & Co., has predicted a significant rally for Bitcoin in 2025. He forecasts that the cryptocurrency’s price could rise to $225,000 by year’s end, driven by enhanced regulatory clarity and growing institutional involvement.
According to a CNBC report, Colonnese’s forecast is part of a broader wave of Bitcoin price predictions that emerged following the 2024 U.S. presidential election, where President-elect Donald Trump claimed victory.
“Based on our analysis of historical price cycles and recent price action, along with the widely-held expectation for a more favorable regulatory environment for the digital assets industry in the U.S. in 2025 under the new administration, the availability of spot ETF products in the U.S., and accelerating institutional investor and corporate adoption, we now estimate that BTC will reach $225,000 per coin by the end of 2025,” Colonnese explained.
The updated projection is raised from an earlier estimate of $145,000. It highlights growing optimism fueled by anticipated regulatory changes, increased institutional participation, and evolving market trends that are set to reinforce Bitcoin’s position as a premier asset class.
The expectation is bolstered by several factors, with a significant focus on the growing sophistication of U.S. regulatory policies. Confidence has risen regarding the potential for clearer legislation surrounding digital assets.
Related: Strategy Sells $1.4B in Stock to Cover Bills Amid Bitcoin Slump
The introduction of regulatory frameworks, including bipartisan initiatives like the Financial Innovation and Technology for the 21st Century Act, is anticipated to release sidelined institutional capital. This is expected to help strengthen Bitcoin’s role in global financial markets.
However, Colonnese offered a note of caution and emphasized that Bitcoin’s bull markets are often accompanied by sharp corrections, with price dips of up to 30% being a common occurrence.
“BTC price action has historically been highly correlated to global liquidity (as measured by M2), which has been on a downtrend since October,” Colonnesse stated.
Related: The History of Altcoins: How Bitcoin’s Rivals Changed the Crypto Game
Additionally, the anticipated success of spot Bitcoin exchange-traded funds (ETFs) in the U.S. is emerging as a significant market catalyst. Analysts predict a surge of Bitcoin ETFs hitting the market in 2025, further fueling optimism for increased adoption and investment in the cryptocurrency.
H.C. Wainwright predicts Bitcoin’s market capitalization to soar to $4.5 trillion by the close of 2025, representing approximately 25% of gold’s total market value.
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MICHAELA
Michaela is a news writer focused on cryptocurrency and blockchain topics. She prioritizes rigorous research and accuracy to uncover interesting angles and ensure engaging reporting. A lifelong book lover, she applies her passion for reading to deeply explore the constantly evolving crypto world.
