Bit by bit, the ascent of Bitcoin breaches the remarkable threshold of $100,000, stirring a whirlwind of projections that see its price potentially doubling come next year. Geoff Kendrick, who helms Global Digital Assets Research at Standard Chartered, attributes this unprecedented rally to a surge of interest from institutional investors, a trend that has seen a marked preference for spot Exchange Traded Funds (ETFs). Moreover, MicroStrategy, a behemoth in the realm of Bitcoin acquisition, has been procuring the digital asset at a pace that outstrips expectations.
As we look ahead to 2025, Kendrick posits that the influx of institutional capital into Bitcoin is poised to maintain, if not exceed, its current momentum. This anticipation is further buoyed by potential regulatory reforms under the forthcoming Trump administration, enhancing the feasibility of Bitcoin’s price target of around $200,000.
MicroStrategy’s ambitious $42 billion strategy to bolster its Bitcoin holdings over the ensuing three years, leveraging both equity and debt, is reportedly ahead of its envisaged schedule. The company’s Bitcoin reserves have swelled by 150,000 units since Election Day, augmenting its portfolio’s value by more than $15 billion.
Beyond MicroStrategy’s aggressive accumulation, Kendrick forecasts a burgeoning interest from pension funds in spot Bitcoin ETFs by 2025. Should U.S. retirement funds and global sovereign wealth funds follow suit with significant allocations, it could propel Bitcoin’s valuation to even loftier heights.
In the wider ambit of cryptocurrency discourse, a proposal by President-elect Donald Trump to establish a U.S. strategic Bitcoin reserve, as echoed by Coinbase CEO Brian Armstrong, could serve as a potent bullish signal for the digital currency, albeit Kendrick qualifies this as a rather improbable scenario.
The immediate aftermath of Bitcoin’s surge above (and subsequent dip below) the $100,000 marker has sparked a flurry of speculation. While Matt Mena of 21Shares identifies this milestone as a crucial psychological barrier capable of attracting new investors, Brent Kenwell from eToro hints at the possibility of existing market participants taking profits, potentially leading to a short-term pause in Bitcoin’s rally.
Following a brief decline to $93,000 post-peak, Bitcoin’s resilience was on display as it climbed back to $102,000, reinforcing its position above the $100,000 threshold. This volatility underscores the speculative nature of Bitcoin’s journey, with FXTM’s Lukman Otunuga cautioning that a steadfast closure above $100,000 could herald further gains, while a fallback might tilt the scales towards bears eyeing a target of $95,000.