Asset management firm VanEck forecasts a massive bull run for cryptocurrencies. It predicts Bitcoin will reach as high as $180K, and other major digital assets will reach record highs by the end of 2025.
The firm projected in a December 13 blog post that the cryptocurrency bull market will experience a “medium-term peak” in the first quarter of 2025 before a period of consolidation and eventual recovery leads to new all-time highs.
VanEck Predicts Bitcoin at $180K and Ethereum Above $6K in the Next Market Cycle
According to a blog post published on December 13 by Matthew Sigel, VanEck’s head of digital asset research, at the anticipated market peak, VanEck expects Bitcoin (BTC) to reach approximately $180,000, with Ethereum (ETH) surpassing $6,000.
Other major cryptocurrencies, including Solana (SOL) and Sui (SUI), could see valuations exceeding $500 and $10, respectively.
However, the firm forecasts a summer correction, with Bitcoin facing a 30% retracement and altcoins potentially declining by up to 60%.
Despite these setbacks, VanEck expects a recovery by the fall, with major tokens regaining momentum and achieving new highs before the end of the year.
NEW: Spot #Bitcoin ETF issuer VanEck is predicting in 2025:
– $180,000 bitcoin price
– Banks will be allowed to custody bitcoin
– US will adopt Strategic Bitcoin Reserve
– Bitcoin ETFs will support in-kind creations & redemptions
THIS WOULD BE MASSIVEpic.twitter.com/l6JyjFaaRc
— Nikolaus Hoffman (@NikolausHoff) December 13, 2024
The firm has identified several key indicators to monitor for signs of speculative market peaks. For example, high funding rates on Bitcoin perpetual futures above 10% for three months could indicate speculative excess.
Similarly, many Bitcoin holders with unrealized profits exceeding a 70% profit-to-cost ratio suggest market euphoria.
An overvalued market cap relative to realized value, measured by MVRV scores above 5, often signals overheated conditions.
Additionally, a decline in Bitcoin’s dominance below 40% could indicate late-cycle speculative shifts into riskier altcoins.
Increased speculation from non-crypto-savvy individuals is also a warning sign of mania near a market top.
The blog post also reflects on previous predictions made by Sigel, including a projection that Bitcoin could climb to $2.9 million per coin by 2050 and Ethereum reach $22,000 per token by 2030.
Trump’s Pro-Crypto Administration: A Boost for Bitcoin Institutional Adoption?
The market outlook for Bitcoin reflects growing bullish sentiment among experts.
Cathie Wood, CEO of ARK Invest, has predicted BTC will surpass $1 million by 2030, citing increased participation from major investment banks like Morgan Stanley and Bank of America.
Similarly, Henry Arslanian, co-founder of Nine Blocks Capital Management, believes President-elect Donald Trump’s pro-crypto administration will drive institutional adoption.
In a November 6 X post, he highlighted opportunities for asset managers and family offices to enter the U.S. crypto market.
What is the impact of Trump’s win on the #Bitcoin and #Cryptocurrency markets?
3 things to watch:
– change of US regulatory stance
– further entry of institutional investors
– wave of M&A in the space pic.twitter.com/9rJAJNO6h9— Henri Arslanian (@HenriArslanian) November 6, 2024
Analysts are optimistic about Bitcoin’s price trajectory. Crypto research firm 10x Research suggests BTC could reach $100,000 by January 2025, noting historical patterns where a six-month high typically leads to a 40% median gain over three months.
Independent analyst Mags also predicts Bitcoin could hit $250,000 within a year, referencing its 360% post-election rally in 2020 and potential similar growth in 2024.
MicroStrategy’s bold Bitcoin strategy continues to yield massive returns. Since 2020, the firm has invested $23.5 billion to amass over 400,000 BTC, equivalent to 2% of Bitcoin’s total supply.
As of December 7, its holdings are valued at $40 billion, with an unrealized profit of $16.5 billion—a 70% return on capital.
The post VanEck Predicts $180K Bitcoin, US Strategic Reserve, and Bank Custody by 2025 appeared first on Cryptonews.