Bitwise Predicts Bitcoin to Reach $200,000 by 2025 on Institutional Demand

Bitwise, a prominent digital asset management firm, has updated its price predictions for Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) for the year 2025. The firm's Chief Investment Officer, Matt Hougan, outlined these predictions in a note to clients, highlighting the potential impact of various factors on the cryptocurrency market.

Hougan maintained Bitwise's previous prediction of Bitcoin reaching $200,000 by the end of 2025. This forecast is based on the expectation of increased institutional demand for BTC starting from 2024, which is anticipated to drive the price higher. Despite the challenging obstacles faced by Bitcoin and altcoins, such as US President Donald Trump’s tariff policy, the rally expectations for BTC remain strong.

However, Bitwise expressed less confidence in Ethereum and Solana reaching new all-time highs. While the firm acknowledged the potential for price increases due to growing interest in stablecoins, ETF approvals, and the emergence of ETH and SOL treasury companies, it did not set new targets for these cryptocurrencies. At the beginning of the year, Bitwise had set a target of $7,000 for Ethereum and $750 for Solana, but these predictions were not updated in the latest note.

In addition to the price predictions, Bitwise also provided an update on its other predictions for 2025. The firm remains confident in the validity of several predictions, including the expectation that Bitcoin ETFs will attract more inflows in 2025 than in 2024, and that 2025 will be the “Year of the Crypto IPO” with at least five crypto unicorns going public in the US. However, the firm expressed uncertainty about the likelihood of Coinbase surpassing Charles Schwab as the world's most valuable brokerage firm, and the possibility of AI-driven token launches leading to a bigger memecoin craze than in 2024.

Bitwise also noted that some of its predictions have already come true, such as Coinbase entering the S&P 500 and MicroStrategy entering the Nasdaq-100, and the U.S. Department of Labor loosening its guidance against crypto in 401(k) plans. However, the firm acknowledged that it is still too early to reach the goal of stablecoin assets doubling to $400 billion with the passage of long-awaited stablecoin legislation in the US.

Overall, Bitwise's updated predictions for 2025 reflect a cautious optimism about the cryptocurrency market, with a focus on the potential for institutional demand to drive price increases for Bitcoin, and the possibility of regulatory developments and technological innovations supporting the growth of the broader market. However, the firm also acknowledged the uncertainty and volatility of the market, and the potential for unexpected obstacles to impact its predictions.