Among three respected crypto-positive experts – Cathie Wood (CEO of Ark Invest), Jurrien Timmer (Director of Global Macro at Fidelity Investments) and Tom Lee (Head of Research at FundStrat) – the outlook for BTC stays optimistic, with corrections expected and naturally crashes along the best way. Here’s what they should say about Bitcoin’s possible short, medium and long run price.
- Tom Lee sees BTC at $250,000 by the top of 2025. Lee was right when he said that BTC would reach $100,000 in 2024.
- Cathie Wood sees BTC at $600,000 (base case) or $1.5 million (bull case) by 2030. Wood announced this in January 2024 – when Bitcoin was below $50,000 and the primary US-based spot BTC ETF had just been launched by the US US Securities and Exchange Commission (SEC) had been approved. She repeated this view in mid-November 2024.
- Jurrien Timmer suggests BTC could reach $200,000 to $250,000 in the subsequent five years or so. Its valuation model assumes that Bitcoin’s market capitalization will rise to a minimum of 1 / 4 of that of gold.
Factors that might positively (or negatively) affect Bitcoin in 2025
Here’s what you need to concentrate to in the brand new 12 months:
Liquidity in Canada and the USA
Loose monetary policy (which implies lower rates of interest) has a positive impact on higher BTC prices. While Canada has already significantly reduced rates of interest, the more vital cuts for Bitcoin are those from the US Federal Reserve (Fed). The Fed began cutting rates of interest in September 2024, with three cuts to this point. The last cut of 25 basis points occurred on December 19, 2024. If US rates of interest proceed to say no in 2025, the worth of BTC could proceed to rise.
On the opposite hand, if inflationary pressures increase in 2025 and rate cuts are paused for an prolonged time period – or if rate cuts are smaller and slower than the market expects – the BTC rally could take a breather. This is an actual possibility. In its Dec. 19 announcement, the Fed took a more hawkish stance on rates of interest than it did firstly of 2024 and warned that inflation could rise again in 2025.
Trump presidency
Donald Trump ran his presidential campaign on a crypto-friendly platform. He talked about enacting crypto-friendly regulation to assist the industry grow moderately than stifle it. This has turn into even clearer since he has crypto advocate Elon Musk at his side. So much in order that the Department of Government Efficiency, a proposed advisory body led by Musk and entrepreneur Vivek Ramaswamy, is shortening to DOGE – a well known memecoin that Musk has publicly supported for years.
While a Trump administration will probably want to support cryptocurrencies, it is going to undoubtedly have to deal with the rampant criminality and fraud plaguing the space. How they do this can contribute to the health and future development of the crypto market.
New SEC Chairman
One of a very powerful crypto regulatory positions on the planet is that of SEC Chairman. Until January 2025, it’s Gary Gensler who’s harshly criticizing alternative coins (also often known as altcoins or all coins except Bitcoin) because he views them as securities and due to this fact regulated by existing securities laws. One could argue that while this approach is nice for investor protection, it has also stifled innovation within the crypto industry.
Trump’s nominee for SEC chairman is Paul Atkins – a former SEC commissioner with a positive view of cryptocurrencies. The growth of the crypto industry depends largely on Atkins’ approach to regulation.
