According to analysts at AllianceBernstein, Bitcoin has the potential to hit a high of $150,000 in 2025. This surge in price is expected to be fueled by two key factors: the upcoming halving event and the anticipated influx of institutional investors through Bitcoin exchange-traded funds (ETFs), which are likely to receive approval in the near future.
The increasing optimism surrounding ETFs has already had a positive impact on Bitcoin’s price. On Friday, the largest cryptocurrency surpassed $37,000. While it has gained over 120% this year, it still remains more than 45% below its peak in November 2021, as per CoinDesk data.
To better understand Bitcoin’s price patterns, the analysts divided its cycles into four-year segments, each characterized by four distinct phases: break-out, hype, correction, and accumulation. These cycles align with the halving events, where block rewards for Bitcoin miners are halved after every 210,000 blocks are mined (approximately every four years). So far, Bitcoin has undergone three halvings, with the next one expected to occur in April of next year.
The analysts believe that the next bull run will primarily be driven by institutional investors entering the market through Bitcoin ETFs. They anticipate that the initial flow of investments may be slower and gradual, with the momentum building post-halving. This projected trajectory suggests a cycle peak in 2025 rather than 2024.
While the current breakout in Bitcoin’s price can be attributed to the gradual integration of ETF approval news into the market, the analysts caution that short-term disappointment may follow due to initial outflows.
Overall, the future looks promising for Bitcoin, with the potential for significant growth fueled by halving events and institutional investor participation through ETFs.
