Bitcoin’s rise past the $100,000 mark has generated considerable excitement, but Russian investors remain sceptical about its potential to hit $200,000 this cycle.
Analysts consulted by Russia’s state news agency TASS predict that Bitcoin could peak at $160,000 but believe a price doubling in the near term is unlikely. The analysts attributed Bitcoin’s recent surge to shifting macroeconomic conditions, including the United States Federal Reserve’s decision to cut interest rates following an extended period of tightening. They also claimed that the increasing global liquidity and mounting concerns about inflation have steered investors toward scarce assets like Bitcoin.
Investor interest is growing in Bitcoin-linked products such as options and exchange-traded funds (ETFs). Bitcoin ETFs now hold nearly $113 billion in net assets, according to SoSoValue data.
Institutional adoption has played a significant role as well, with companies like MicroStrategy rapidly increasing their Bitcoin reserves. The company, which is already the largest corporate Bitcoin holder, added 15,400 BTC to its reserves in early December, spending $1.5 billion at an average price of $95,976 per coin. This acquisition raised the company’s total Bitcoin holdings to 402,100 BTC, valued at nearly $40 billion.
Despite these bullish trends, the analysts urge caution. They projected two possible scenarios for Bitcoin’s trajectory: a conservative target of $130,000 and an optimistic peak of $160,000 by mid-2025.
Meanwhile, Chris Burniske, partner at Placeholder VC, has advised investors to temper expectations and avoid overhyping market targets. He pointed out that during the 2021 bull market, there were inflated predictions of Bitcoin reaching $100,000 and Ethereum $10,000, while actual peaks were $70,000 and $5,000. The former ARK Invest analyst urged investors to set realistic expectations and consider profit-taking during this period of high market optimism.
If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
