How Bitcoin (BTC) Could Reach $200,000 in 2025

Bitcoin (BTC) has broken through to new all-time highs and is now nearing $92k (≈ R1.6M) per coin, up 70% from $55k just two months ago.

With a $1.8 Trillion market value, Bitcoin is now ranked as the 8th most valuable asset worldwide. This means that the total value of all the world’s Bitcoin in circulation is now larger than the total value of the world’s silver, BTC’s rapid ascent has sparked speculation that a major crypto bull market could be on the horizon.

With increasing pro-crypto support from the US government, favourable lower interest rate conditions, growing institutional interest, and promising cyclical indicators, BTC could be poised to once again outshine traditional investments.

Brett Hope Robertson, Head of Crypto Investments at alternative investment platform Altify, shares what he believes to be the 5 fundamental tailwinds that could drive BTC up by a further 120% within 12 months, clearing $200,000 by the end of 2025. He also shares more on an exclusive Bitcoin cash reward and fee-free promotion that Altify is running for new customers.

1. U.S. Presidential Support for Crypto

One of the key drivers behind Bitcoin’s recent surge is the U.S. government’s evolving position on cryptocurrency. The incoming U.S. President, Donald Trump, has adopted a pro-crypto stance, advocating for favourable regulations that would enhance access to crypto assets for the largest and wealthiest nation in the world.

Adding further momentum is Senator Cynthia Lummis’s proposal to establish a strategic Bitcoin reserve. This plan suggests that, much like gold, Bitcoin could become a national asset, with the U.S. government acquiring one million BTC over five years—an average of 500 BTC daily. With only about 1.22 million Bitcoins left to be mined, such a large-scale purchase strategy would likely cause a demand-supply imbalance and drive prices upward.

2. Favourable Economic Environment

The current economic landscape is another favourable factor for Bitcoin’s growth. With a new Republican-led government poised to borrow more money and therefore increase the money supply — effectively printing new money into circulation — to fund infrastructure projects aimed at revitalising manufacturing in the U.S., we can expect an injection of liquidity into the economy. This injection of liquidity into the economy together with the lowering of interest rates, should foster an environment conducive to growth and investment in risk assets like Bitcoin.

Lower interest rates reduce the cost of borrowing, incentivising both businesses and individuals to invest in higher-risk, higher-reward assets. Bitcoin, often viewed as a hedge against inflation and economic instability, becomes increasingly attractive to investors seeking strong returns. Additionally, initiatives to bolster U.S. manufacturing can lead to greater economic stability, which may further boost investor confidence in Bitcoin as a stable and promising asset.

3. Institutional Demand on the Rise

For the first time, traditional institutional products for Bitcoin are accessible during a crypto cycle. The introduction of Bitcoin Exchange-Traded Funds (ETFs) has opened the floodgates for institutional investors to pour over $27 billion into BTC, making it the fastest-growing ETF in history.

BTC inflows have already largely outpaced gold ETFs, with BTC ETFs accounting for over 30% of all global gold ETFs within 10 months of launching. Giants like BlackRock officially have more assets under management in their BTC ETF than they do in their gold ETF.

Corporate adoption is proving to be a game-changer for Bitcoin. Companies such as Microsoft have expressed interest in Bitcoin, recognising it as a viable store of value in an inflationary economy. Tesla’s significant Bitcoin holdings and MicroStrategy’s plan to purchase $42 billion worth of BTC highlight the growing trend of businesses incorporating Bitcoin into their financial strategies. This surge in institutional capital not only drives demand but also legitimises Bitcoin as a mainstream financial asset.

4. Resurgence in Retail Demand

Retail demand for Bitcoin is showing clear signs of a resurgence, with global search trends for Bitcoin on Google on the rise. This growing interest among individual investors is a strong indicator of increasing demand.

The popularity of low cost and user-friendly investment apps such as Altify in South Africa or Robinhood in the US, reflecting a broader acceptance and enthusiasm for Bitcoin among the general public.

5. Positive Technical Position in the Halving Cycle

Bitcoin’s technical position within its halving cycle is a key driver of its price movements. Historically, Bitcoin has followed a four-year cycle closely tied to its halving events, where the reward for mining new blocks is halved, reducing the rate of new BTC entering the market. This mechanism has resulted in more demand than supply in the past leading to significant price increases.

Bitcoin is currently positioned favourably within its halving cycle as it begins to enter its green box phase. Past trends suggest that the green box phase brings rising prices for the next +-300 days. If Bitcoin continues to follow its past patterns, reaching $200,000 by mid-2025 becomes highly plausible.

Bitcoin’s journey towards a $200,000 valuation by the end of 2025 is underpinned by a confluence of favourable factors. Governmental support and strategic reserve initiatives in the U.S., a supportive economic environment, surging institutional and retail demand, and a positive technical position within its halving cycle all contribute to this optimistic outlook. As traditional financial institutions and major corporations increasingly embrace Bitcoin, its legitimacy and demand continue to grow, making it an attractive investment opportunity.

Where is the Best Place to Buy Bitcoin (BTC) in South Africa?

Cape Town-based Altify, a regulated FSP (No. 53289) is backed by JSE-listed Sabvest offers the leading platform in South Africa to invest in 40+ cryptocurrencies including Bitcoin (BTC). Altify also offers the widest array of Crypto Bundles, which are like crypto ETFs or crypto index funds, allowing you to easily diversify across multiple leading cryptocurrencies with a single investment.

For new customers, Altify is offering you the chance to start your crypto investment journey the right way, with an instant 20% return on your initial investment. Simply sign up with the promo code BITCOIN200, invest R500 and get R200 into your account.

That’s not all, Altify will also be offering zero buy fees* on Bitcoin (BTC) from the 15th to the 22nd of November 2024.

This means you can take advantage of Bitcoin’s potential without the worry of investment fees eroding your returns.

*You can find Altify’s fee-free promotional terms here.

Altify’s mobile app is as easy to use as your banking app, allowing you to start investing with as little as R150. There’s no hidden signup or monthly fees, and you can sell an investment and make a withdrawal at any time 24/7.

Risk Disclaimer

Altify SA Capital (Pty) Ltd (FSP 52727) and Altify SA DAS (Pty) Ltd (FSP 53289) are both authorised financial services providers.

This article is provided solely for informational purposes. The opinions expressed herein do not constitute investment advice or recommendations, nor should they be regarded as such. This document does not represent an offer to buy or sell, or a solicitation of an offer to buy or sell, any of the crypto assets mentioned.

Altify operates as a brokerage service facilitating the reception and transmission of crypto asset orders, without providing investment advice or personalised recommendations. While Altify advocates for the broader accessibility of cryptocurrencies, they may not be suitable for every investor.

It is important to consider your investment goals, experience level, and seek independent financial advice where necessary. Altify strongly recommends conducting comprehensive research before investing in cryptocurrencies.

Investors are solely responsible for their investment decisions. Considering the high volatility associated with cryptocurrencies, please evaluate your financial circumstances carefully before engaging in transactions. Cryptocurrencies carry a high risk, with potential for both significant gains and losses. Investing in cryptocurrencies may lead to a total loss of capital.

Past performance is not indicative of future results, and returns cannot be guaranteed as cryptocurrency values fluctuate based on market supply and demand. Do not invest more than you can afford to lose and seek professional guidance if you are unsure about the suitability of a cryptocurrency investment for your specific situation.

Please refer to the General Risk Disclosures and Crypto Risk Disclosures on Altify’s website for more information. Investments should only be undertaken by individuals who fully understand these risks.

For additional details, please visit www.altify.app