Bitcoin Price Target Raised to $225K by HC Wainwright

 
Kritika Mehta
Written By 
Kritika Mehta
January 2, 2025

HC Wainwright & Co. has raised its year-end Bitcoin price target for 2025 to $225,000 from its previous estimate of $145,000. This significant revision reflects optimism surrounding the crypto market, ed by factors like regulatory clarity in the U.S., anticipated approval of spot Bitcoin ETFs, and growing institutional adoption.

Bitcoin Price Prediction By HC Wainwright

In their report, Wainwright analysts noted that the updated target implies a total crypto market cap of $10 trillion by the end of 2025, based on Bitcoin dominance falling to 45% from the current 56%. They explained, “Our new price target for 2025 reflects 113% upside to current levels. However, we caution investors that 20-30% drawdowns during bull market cycles are not uncommon.”

The firm also emphasized the potential for BTC price fluctuations. It stated, “We estimate BTC could retrace back down to the mid-$70,000 range in early 1Q25 before resuming its uptrend.” Despite these anticipated corrections, the report highlights strong historical correlations between Bitcoin’s price action and global liquidity trends.

One of the key factors driving this bullish outlook is the possible implementation of Bitcoin as a treasury reserve asset by the U.S. government. While this scenario is not factored into the current price target, analysts said it could “significantly exceed our base case price target.” Additionally, they noted, “Our BTC mining financial models currently assume much more conservative forecasts for BTC prices in 2025 ($115,000 by 4Q25).”

Wainwright also addressed broader market trends, predicting a rise in the total crypto market cap from $3.6 trillion today to $10 trillion by 2025. They explained, “Bitcoin’s share of the total crypto market cap tends to hit all-time lows around cycle peaks for crypto asset prices.” Also, it’s worth noting that if Bitcoin price reaches $225,000 as projected, it would for approximately 25% of gold’s total market cap.

Also Read: A Strategic Bitcoin Reserve: Is This Wise?

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Kritika Mehta
Written by Kritika Mehta

Kritika boasts over two years of experience in financial news and is currently a crypto journalist at CryptoNewsZ. She excels in covering blockchain technology and cryptocurrencies, offering insightful analysis and a strong grasp of market trends. With a focus on reporting the latest news, she delivers a nuanced perspective, exploring the intersection of finance, technology, and emerging crypto trends. Her ability to break down complex topics makes her work accessible to both seasoned investors and newcomers. ionate about the transformative power of blockchain, she continually researches industry developments to provide readers with accurate, engaging, and well-researched content. She also closely monitors regulatory changes, helping readers understand their impact on the crypto market.