Many major banks expect Bitcoin to potentially reach levels as high as $200,000 by the close of the year, buoyed by unprecedented ETF investments and shifts in investment from gold assets.

Key Highlights:

• Year-end forecasts for Bitcoin from Wall Street vary significantly, ranging from $133,000 to an impressive $200,000.
• Consensus indicates that continued ETF inflows and correlation with gold may propel Bitcoin to unprecedented heights.

Bitcoin (BTC) has surged over 13% in the last week, edging closer to its all-time high of $124,500.

BTC/USD daily price chart. Source: TradingView

Bitcoin is predicted to attain record levels by 2025 as per evaluations from a selection of prominent financial entities in Wall Street and the UK.

Citigroup Projects BTC to Hit $133,000

Citigroup forecasts that Bitcoin will conclude 2025 at approximately $133,000, representing an upward movement of about 8.75% from its current pricing at roughly $122,350.

BTC/USD daily price chart. Source: TradingView

The banking giant anticipates steady growth spurred by robust ETF inflows and digital asset treasury allocations as pivotal structural drivers for Bitcoin’s next advancement.

JPMorgan Analysts Predict BTC Could Reach $165,000 in 2025

According to a team of JPMorgan Chase strategists, led by Managing Director Nikolaos Panigirtzoglou, Bitcoin retains a lesser valuation when compared to gold once volatility is considered.

They observe that the Bitcoin-to-gold volatility ratio has decreased, implying Bitcoin now harbors higher risk capital compared to gold. They project that a rise in Bitcoin’s market capitalization of about 42% would be needed to align with the estimated value of private gold assets.

Bitcoin and gold’s volume-adjusted comparison. Source: JPMorgan Chase

Gold has seen notable appreciation recently, with an uptick of 48% year-to-date, on course for a peak performance since 1979.

While forecasting significant rises for Bitcoin, JPMorgan also factors in a stable influx from ETF sources, predicting it aligns with the ongoing rate-cutting cycle of the Federal Reserve.

Standard Chartered Takes a Bold Stance at $200,000

Standard Chartered showcases extreme optimism by forecasting Bitcoin may touch $200,000 by December, attributed to consistent ETF investments exceeding $500 million per week, which could escalate Bitcoin’s market cap to nearly $4 trillion.

US Bitcoin ETF Weekly Net Flows Chart. Source: Glassnode

They predict this scenario not merely as a speculative uptrend but as a foundational bullish trajectory.

VanEck Projects Bitcoin to Reach $180,000 in 2025

Asset manager VanEck posits that Bitcoin might hit around $180,000 in 2025, influenced by post-halving dynamics. They suggest that the coming April 2024 halving will incite a supply crunch, combined with ETF demand to fuel upcoming growth.

Bitcoin price performance since halving. Source: Glassnode

This article refrains from providing investment advice or suggestions. Investments come with risk, and readers should perform their own due diligence when making financial decisions.