Amongst three revered crypto-positive consultants—Cathie Wooden (CEO of Ark Make investments), Jurrien Timmer (director of worldwide macro at Constancy Investments) and Tom Lee (head of analysis at FundStrat)—the outlook on BTC stays bullish, with the anticipated corrections and crashes alongside the best way, after all. Right here’s what they should say concerning the doable short-, medium- and long-term value of bitcoin.
- Tom Lee sees BTC at $250,000 by the top of 2025. Lee was proper about BTC touching $100,000 in 2024.
- Cathie Wooden sees BTC at $600,000 (base case) or $1.5 million (bull case) by 2030. Wooden acknowledged this in January 2024—when bitcoin was beneath $50,000 and the primary U.S.-based spot BTC ETF had simply been accepted by the U.S. Securities and Trade Fee (SEC). She reiterated this view in mid-November 2024.
- Jurrien Timmer suggests BTC may attain $200,000 to $250,000 within the subsequent 5 years or so. His valuation mannequin assumes that bitcoin’s market cap will rise to a minimum of 1 / 4 of gold’s.
Elements that would positively (or negatively) have an effect on bitcoin in 2025
Right here’s what to observe for within the new yr:
Liquidity in Canada and the U.S.
Looser financial coverage (that means decrease rates of interest) is constructive for greater BTC costs. Whereas Canada has already considerably minimize rates of interest, the extra essential cuts for bitcoin are these by the U.S. Federal Reserve (Fed). The Fed began fee cuts in September 2024, with three cuts thus far. The most recent minimize of 25 foundation factors was on Dec. 19, 2024. If U.S. charges fall additional in 2025, the worth of BTC may proceed to rise.
However, if inflationary pressures spike in 2025 and fee cuts are halted for a protracted interval—or if fee cuts are decrease and slower than the market expects—then the BTC rally may take a breather. It is a actual risk. In its Dec. 19 announcement, the Fed took a extra hawkish stance on charges than it had earlier in 2024—warning that inflation may rise once more in 2025.
Trump presidency
Donald Trump ran his presidential election marketing campaign on a crypto-friendly platform. He spoke about enacting crypto-friendly regulation to develop the business, reasonably than stifle it. This has been much more pronounced since he’s had pro-crypto Elon Musk at his facet. A lot in order that the Division of Authorities Effectivity, a proposed advisory physique to be led by Musk and entrepreneur Vivek Ramaswamy, shortens to DOGE—a well known memecoin that Musk has publicly supported for years.
Whereas a Trump authorities might wish to assist crypto, it’ll little question have to handle the rampant criminality and scams that plague the house. How they strategy it will contribute to the well being and the long run trajectory of the crypto market.
New SEC chair
One of many world’s most essential regulatory positions for crypto is that of SEC chairperson. Till January 2025, it’s Gary Gensler, who has been robust on various cash (a.ok.a. altcoins, or all cash aside from bitcoin) as a result of he sees them as securities, and subsequently as being regulated beneath present securities legal guidelines. Whereas this strategy, it could possibly be argued, is nice for investor safety, it has additionally stifled innovation within the crypto business.
Trump’s SEC chair nominee is Paul Atkins—a former SEC commissioner with a constructive outlook on crypto. The expansion of the crypto business relies upon an excellent deal on Atkins’ regulatory strategy to it.
