HC Wainwright said regulatory clarity and institutional adoption could push Bitcoin’s price to more than double this year. In a note to investors on Thursday, the company said it raised its price target on the flagship cryptocurrency to $225,000 from $145,000, implying upside potential of more than 130%. “The availability of spot ETF products is based on our analysis of historical price cycles and recent price movements, as well as widespread expectations for a more favorable regulatory environment for the U.S. digital asset industry in 2025 under the new administration,” said HC Wainwright analyst Mike Colonnese. As adoption accelerates among U.S. institutional investors and corporates, we now estimate BTC will reach $225,000 per coin by the end of 2025, he added, adding that the new price target implies a total market capitalization of $4.5 trillion, roughly equivalent to gold. 25% of the total market cap. He also warned that 30% retracements are not uncommon during Bitcoin bull cycles and investors should prepare for some volatility in the coming weeks: “Historically, BTC prices have The trend is highly correlated with global liquidity (measured as M2), which has been on a downward trend since October. “Consequently, we estimate that BTC may fall back to the mid-$70,000 range by early Q1’25 before resuming its upward trend. On the other hand, he said that if the United States adopts Bitcoin as a treasury reserve asset this year, the price of Bitcoin could “significantly exceed” the company’s new target – an idea first proposed by Wyoming Senator Cynthia Lummis ( Cynthia Lummis last summer and was echoed by President-elect Donald Trump. The company projects a 60% chance that the United States will establish a national strategic Bitcoin reserve this year. This year is expected to be another great year for the cryptocurrency space. HC Wainwright said investors are hoping Congress will deliver long-awaited cryptocurrency-focused legislation, with any regulatory clarity likely to drive further investment in Bitcoin from advisor allocations and listed companies adding crypto assets to their coffers. —CNBC’s Michael Bloom contributed reporting.
