According to cryptocurrency mining firm Blockware, Bitcoin’s potential price range in 2025 is very wide, but it depends on three main factors.
Cryptocurrency mining firm Blockware Solutions says Bitcoin prices could quadruple by 2025, or increase by 58% in a worst-case scenario, under Donald Trump’s Bitcoin Reserve Plan and Federal Reserve policies.
Blockware said in a market report on December 28 that Coinedict found that the “potential market” for Bitcoin in 2025 could see its price jump by 58%, from $94,981 to $150,000.
Bitcoin price action in 2025 could play out in different ways
According to Blockware, the market could potentially hit $150,000 if Donald Trump “doesn’t follow through” on his strategic Bitcoin reserve – an outcome the industry expects to occur early in his administration. Jack Marlers, founder and CEO of Strike, has said that Trump could issue an executive order on his first day in office to designate Bitcoin as a reserve asset for the US.
Meanwhile, Blockware said that a weak market could also be the target.
First, as the consumer price index (CPI) falls, the Fed will need to “step up.”
Second, businesses should be quick to adopt Bitcoin, with one of the “Big Seven” — Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, or Tesla — adding Bitcoin to their portfolios. The bulls “will be turning away,” while long-term holders (those who have held BTC for more than 155 days) “will be aggressive” in buying Bitcoin.
As a “case study,” Blockware is targeting $225,000, assuming the US government converts its Bitcoin holdings into strategic Bitcoin reserves, the Federal Reserve cuts interest rates in anticipation, and corporate withdrawals continue at their current pace –
The US government needs to accumulate BTC to reach $400,000
One such company, Microsoft, asked its shareholders to vote against the decision to add Bitcoin to the company’s balance sheet at the company’s annual meeting on December 12. 10.
Related: US-listed Bitcoin, Ethereum ETFs See Net Inflows of $38.3 Billion in Launch Year
Ultimately, the U.S. government will need to not only convert its current Bitcoin holdings into a strategic Bitcoin reserve, but also collect more Bitcoin—an outcome that Galaxy Digital says is unlikely.
“The US government will not sell Bitcoin in 2025,” Alex Thorn, research director at Galaxy Research, said in a report on December 27.
Thorne said the U.S. government will use its own Bitcoin to add to its inventory, and discussions about a Bitcoin reserve policy will continue.