Not only has it been done, it’s difficult to find many assets Bitcoin (Cryptography: BTC). Over the past five and ten years, the world’s top digital assets are around 12% below the $109,000 peak reached in late January, but are up 840% and 44,020% respectively. .
But looking at the rest of the year, the market remains bullish. It’s worth mentioning that 68% of cryptocurrency investors believe that Bitcoin will reach $200,000 in 2025. That type of profit is not normal as Bitcoin skyrocketed by more than 100% in both 2023 and 2024.
However, it is important to consider the drawbacks. This will help you size the position accordingly. Here’s why people who believe that their $200,000 price target in 2025 are likely to be wrong:
Stock investors and crypto investors were undoubtedly very optimistic about what President Trump will bring over the next four years. We believe loose regulations and other business-friendly policies will drive strong economic growth. Market participants bid on the asset price thanks to this perspective.
There’s a chat about creating a strategic reserve for Bitcoin. Additionally, the administration provided guidelines to help position the United States as a leader in the crypto industry. If things go in the right direction, everyone will guess how high Bitcoin is.
But what if this doesn’t pan out, as the Bulls would like? Politicians are famous for saying all the right things to be elected. However, once the push sticks out, it’s difficult to get meaningful legislative measures.
There is a risk that regulatory and political landscapes are not as good as expected. This will certainly be in the way of Bitcoin reaching $200,000.
Another thing to consider is the broader macroeconomic landscape. Last year, investors were convinced that interest rates would fall rapidly. But here we are in February Federal Reserve System We have decided to suspend rate cuts with inflation rates well above the 2% annual target.
A lower interest rate will boost investors to take on increased risk in order to obtain higher returns. This usually increases the fluidity pumped into the system. When this happens, bitcoin works. However, given the current attitude of the central bank, prices may not fall as much as the market thinks.
The development of unfavourable regulations and the possibility of long-distance interest rates could provide evidence for another reason that Bitcoin had not reached $200,000 in 2025. Investor sentiment. This may be the most powerful effect on price.
The story continues