Summary:
Bitwise predicts Bitcoin will hit $200,000 in 2025, but current prices are around $78,500.
The US government executive order does not include plans to buy more Bitcoin, contradicting predictions.
Bitcoin ETFs have experienced a $5 billion outflow since February.
The stock market downturn is impacting the crypto market amid fears of a recession.
Bitcoin trading slightly below $81,000 as of mid-March, with nine months left in 2025.
On December 11, 2024, the crypto asset management firm Bitwise made a striking prediction: Bitcoin will hit $200,000 in 2025. This forecast was grounded in expectations of increased corporate and government buying, anticipated ETF inflows, and the potential effects of the 2024 halving.
However, the current market conditions paint a different picture. As of March 10, 2025, Bitcoin's price fell to $78,500, marking its lowest level since November 2024. This downturn was largely attributed to disappointment surrounding US President Donald Trump’s executive order to establish a Strategic Bitcoin Reserve. While the order aimed to create a reserve from Bitcoin seized by federal agencies, it did not include provisions for purchasing additional Bitcoin, contradicting Bitwise's optimistic outlook.
The situation regarding Bitcoin ETFs is also concerning, with reports indicating an outflow of $5 billion since February, according to SoSoValue. Adding to the bleak outlook, the broader stock market has faced a downturn amid fears of a recession in the US economy, exacerbated by the President's comments about a challenging economic landscape.
As both the crypto and traditional markets have declined in unison, Bitcoin was trading just below $81,000 at the time of reporting. Despite these challenges, there are still nine months left in 2025, leaving room for potential market fluctuations. Given the inherent unpredictability of the crypto space, it remains to be seen how Bitcoin will perform in the coming months.
Disclaimer: The content above is intended for informational purposes only and should not be taken as financial advice. Do your own research before investing.
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