Can Bitcoin Hit $160,000 In 2025? Matrixport Thinks So
December 13 2024 - 1:30PM
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Singapore-based crypto service provider Matrixport predicts that
Bitcoin may reach as high as $160,000 by 2025. In a newly released
report, titled Matrix on Target (Issue #2024-112), the firm
outlines a scenario in which increased institutional adoption,
macroeconomic evolution, and broadening global liquidity could push
the leading cryptocurrency to unprecedented levels. Why Bitcoin
Will Reach $160,000 In 2025 Matrixport’s research team notes that
Bitcoin’s performance in 2024 exceeded multiple key price
projections and validated their previous analytical frameworks.
According to the report, this strength has been propelled by
institutional investors who embraced the Bitcoin ETF market. These
investors have “realized substantial gains, incentivizing further
allocation as we move into 2025,” states Matrixport. The report
highlights Bitcoin’s emergence as a portfolio component,
underscoring that “our analysis recommends a 1.55% allocation to
achieve optimal diversification while maintaining portfolio
stability.” This approach reflects Bitcoin’s gradual integration
into traditional investment strategies, as well as its evolving
status as a macro-relevant asset. Related Reading: Bitcoin To
$250,000, Ethereum To $12,000: Here’s When, Says VC CIO Looking
ahead, Matrixport’s analysis emphasizes the approaching “8%
adoption threshold” that could signal a turning point for Bitcoin.
Drawing parallels to other technologies that experienced
exponential growth once this threshold was crossed. “Historically,
technologies that cross this mark, such as smartphones and social
media, experience exponential growth driven by network effects and
broader accessibility. As Bitcoin gains mainstream acceptance, it
is poised to transition from a niche asset to a core component of
global financial markets,” the firm forecasts. Matrixport also
details a shift in market dynamics. Historically, Bitcoin’s cycles
were defined by steep 80% retracements, but this pattern may be
diminishing. The firm reports “a growing base of dip buyers and
institutional support,” which it says reduces the probability of
severe corrective phases. While temporary consolidations remain a
part of market structure, Matrixport anticipates these to be “less
pronounced, reflecting Bitcoin’s maturation as an asset class.”
Regarding specific price forecasts, Matrixport outlines a “+60%
upside” as the market progresses into 2025, culminating in a
$160,000 price target for Bitcoin. The report attributes this
target to “sustained demand for Bitcoin ETFs,” supportive
macroeconomic conditions, and an expansion in global liquidity.
Related Reading: Australia’s Biggest Pension Fund Makes Historic
$17M Bitcoin Investment, A National First Matrixport’s proprietary
Greed & Fear Index—a barometer for market sentiment—indicates
stable conditions. The report claims that “the current
consolidation phase may be shorter than previous ones,” with
stabilized funding rates and normalized market conditions. In turn,
the analysts see “the stage … set for renewed upward momentum.”
Matrixport also calls attention to Bitcoin’s recent resilience,
noting that “the swift recovery from recent overheated conditions”
supports the notion that BTC price is well-positioned for another
growth cycle. The overarching view remains optimistic. Matrixport
concludes that “the outlook for 2025 remains bullish,” with
Bitcoin’s track record as “an inflation hedge, and its integration
into institutional portfolios suggest a transformative year ahead.”
The firm concludes: “As adoption accelerates and the market
matures, Bitcoin is positioned to achieve new all-time highs,
further solidifying its role as a cornerstone of the global
financial landscape.” At press time, BTC traded at $100,371.
Featured image created with DALL.E, chart from TradingView.com
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