Bitcoin’s climb past the $100,000 mark has reignited enthusiasm among global investors, yet Russian market analysts remain cautious, doubting the cryptocurrency will reach $200,000 in the current cycle.
According to a survey conducted by Russia’s state news agency TASS, analysts foresee Bitcoin rising to a potential high of $160,000 by mid-2025 but stop short of predicting a doubling of its current price anytime soon.
Key Drivers Behind Bitcoin’s Rally
Bitcoin’s recent momentum has been fueled by several macroeconomic and market factors:
Federal Reserve Policy: Rate cuts by the Federal Reserve after a period of prolonged tightening have increased global liquidity and heightened inflation concerns, pushing investors toward scarce assets like Bitcoin.
Institutional Investment: Institutional adoption continues to drive demand.
MicroStrategy recently acquired 15,400 BTC for $1.5 billion at an average price of $95,976 per coin.
The company’s total holdings now stand at 402,100 BTC, valued at nearly $40 billion.
BlackRock and other institutional players have also accelerated Bitcoin accumulation.
Financial Products Expansion: Bitcoin-focused financial instruments are gaining traction, with exchange-traded funds (ETFs) nearing $113 billion in net assets, per SoSoValue data.
Corporate Interest: Leading tech companies are exploring Bitcoin’s potential as part of their strategic reserves. Recent discussions include a proposal for Amazon to incorporate Bitcoin into its $88 billion cash reserves by April 2025.
Analysts Predict Limited Upside in Current Cycle
Despite the excitement, analysts maintain a cautious stance:
Conservative Target: Many see Bitcoin reaching $130,000 by mid-2025.
Optimistic Scenario: A ceiling of $160,000 is considered achievable, but analysts agree $200,000 is unlikely within this cycle.
Bank of America strategist Michael Hartnett adds that financial markets may face an “overshoot” in early 2025, citing Bitcoin and the S&P 500’s significant gains this year. The S&P 500 has risen 27% in 2024, nearing its dot-com-era valuation peak.
Corporate Bitcoin Reserves: A Growing Trend?
Proposals for integrating Bitcoin into corporate reserves are gaining attention:
Amazon: The National Center for Public Policy Research suggested that Amazon add Bitcoin to its reserve by 2025.
Microsoft: MicroStrategy founder Michael Saylor proposed a similar strategy for Microsoft, though no decision has been announced.
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