Bitcoin to hit $225,000 by EOY, says Worshipful Investment Bank

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This article is also available in Spanish.

In the newly fired investor noteone of the oldest American investment banks HC Wainwright & Co. — founded in 1868 — forecasts a significant raise in the price of Bitcoin. According to the note, the institution revised its previous end-2025 price target for Bitcoin from $145,000 to $225,000, based on a confluence of historical trends, macroeconomic indicators, and emerging regulatory and institutional factors.

“We estimate that BTC will reach a cycle high of $225,000 by YE2025,” the company said, referring to both market cycles and the potential for a more supportive regulatory landscape for digital assets in the United States in 2025 under the modern administration .

Why Bitcoin Could Hit $225,000 by the End of the Year

HC Wainwright’s analysis highlights several key forces driving Bitcoin’s growth trajectory. One significant catalyst is the wider availability of Bitcoin Exchange spot funds in the US, which could unlock modern waves of institutional capital. The company also cites “accelerating adoption by institutional investors and corporations” as a key factor behind its bullish outlook.

Moreover, the investment bank’s models assume that overall market conditions are improving with global liquidity and that any regulatory overhang will subside. HC Wainwright carefully notes that the forecast is sensitive to macroeconomic conditions, in particular as measured by the M2 money supply, which has been on a downward trend since October.

While he forecast a high six-figure price by 2025, HC Wainwright admitted that Bitcoin’s path to $225,000 is unlikely to be glossy. In the report, the bank warned: “Decreases of ~20-30% during a bull market are not uncommon […] We estimate that BTC could return to the mid-$70,000 range at the beginning of the first quarter before resuming its uptrend.

They attribute these possible declines to Bitcoin’s historical volatility and its correlation with global liquidity trends.

If Bitcoin reaches $225,000 per coin, HC Wainwright predicts Bitcoin’s total market capitalization will be around $4.5 trillion – about 25% of gold’s current market cap of $18 trillion. This scenario represents an raise of 113% from the current level. However, the note added a striking scenario that has not yet been included in the baseline forecast:

“Our new 2025 price target does not take into account the possibility that the U.S. government will formally adopt BTC as a treasury reserve asset at the federal level next year. If implemented, we believe it is likely that BTC could significantly exceed our base-case price target.”

The institution’s analysis also covers the broader cryptocurrency market. Historically, Bitcoin’s dominance (its share of total cryptocurrency market capitalization) tends to decline at market highs and dropped to the low 40% range near the last bull cycle high in November 2021.

Looking ahead, HC Wainwright expects Bitcoin’s dominance to decline to 45% by the end of 2025, down from around 56% currently. Under this assumption, the company projects the total cryptocurrency market to grow from $3.6 trillion today to approximately $10 trillion by the end of 2025.

HC Wainwright’s lineup of publicly traded Bitcoin mining companies is sure to benefit from the anticipated price raise. “If our predictions prove correct, there is the potential for significant upward revisions to estimates for our coverage area over the next year.”

At the time of publication, the BTC price was $96,221.

Bitcoin price, 1-week chart | Source: BTCUSDT on TradingView.com

Featured image created with DALL.E, chart from TradingView.com

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