Bitcoin Predicted to Reach $210,000 by 2025, Driven by Institutional Adoption
1min read Peter Chung, the head of research at a quantitative trading firm, has reiterated his prediction that Bitcoin (BTC) will reach $210,000 by the end of 2025. This forecast is based on the dual nature of Bitcoin, which Chung describes as both a risk-on asset and digital gold, depending on market conditions and investor sentiment. According to Chung, Bitcoin typically behaves like a high-risk asset driven by user adoption and network effects. However, during periods of financial instability, such as the 2022 outbreak of the Russia-Ukraine conflict or the 2023 Silicon Valley Bank collapse, Bitcoin tends to act as a safe-haven asset, similar to gold. These moments are rare, occurring only when the market has doubts about the stability of the US dollar-dominated financial system.
Chung cited institutional adoption and global liquidity expansion as the primary drivers behind his long-term bullish outlook. He acknowledged that market conditions this year haven’t been as expected, specifically the challenging macroeconomic environment and market reaction. However, he described the recent corrections as a “healthy” adjustment, suggesting they have laid a stronger foundation for Bitcoin’s progression toward becoming a mainstream financial asset. “In hindsight, I think it was actually a healthy correction which has paved the way for the further re-rating of Bitcoin as a mainstream asset,” he said.
Echoing Chung’s view, the CEO of a prominent investment firm said in a recent post that Bitcoin’s surge to $94,000 has occurred with minimal retail participation, noting that google searches for “Bitcoin” remain near long-term lows. According to the CEO, the current rally is being driven by institutional investors, financial advisers, corporations, and even nation-states. “The types of investors buying Bitcoin is expanding,” the CEO said. Corporate Bitcoin treasuries already hold nearly $65 billion worth of BTC, according to data from a Bitcoin tracking website.
Chung also reaffirmed Presto’s target for Ether (ETH), maintaining its valuation model based on the ETH-to-BTC ratio, reflecting confidence in Ethereum’s ongoing network improvements. While Bitcoin has lagged behind gold during recent market turbulence, Chung suggested BTC could “catch up” and potentially outperform traditional safe-haven assets by year’s end.
Ask Aime: Bitcoin at $210K by 2025?
