2021 has been an uncertain year for Bitcoin. The largest cryptocurrency by market cap hit an all-time high of $65,000 in April this year.
However, it lost more than half of its market value compounded by China’s harsh regulations and a crackdown on mining activities. The year has also witnessed an increase in Bitcoin adoption rate with several global financial institutions and established technology firms. Notably, they include PayPal, Visa, JPMorgan, Goldman Sachs, MicroStrategy, Apple, and Tesla, all adopting Bitcoin.
Following increased Bitcoin adaptation coupled with increased blockchain-based investments, it’s evident that hyperbitcoinisation is almost a reality, predicted to occur by 2050. It means the moment Bitcoin takes over global finance.
However, even before hyperbitcoinisation, what will be the price of Bitcoin in 2025? Considering Bitcoin’s price history, behavior, and relevant expert predictions here’s what you could expect Bitcoin to be worth in 2025.
Bitcoin was launched in January 2009 by pseudonymous Satoshi Nakamoto. Satoshi presented the idea of a decentralized digital currency under a whitepaper titled: Bitcoin: A Peer-to-Peer Electronic Cash System. Ten months after the whitepaper presentation, Bitcoin’s market worth debuted at the rate of $1 US Dollar = 1,309.03 BTC. Initially, the price of the crypto world-beater was determined based on the electricity cost needed to mine a single coin.
Bitcoin made the first-ever positive price movement in 2010 to trade at $0.08. However, the price movements were slowed down by high volatility and unregulated markets, contributing to excessive fraud. In 2011, bitcoin jumped to $32, only to drop to $2 later.
Later on, Bitcoin gained some popularity among tech enthusiasts and corporate investors, leading to an enormous price growth from $4 in 2012 to $1,200 in 2017. However, despite the massive price growth, the BTC market was still volatile and still vulnerable to security challenges marked by the millions worth of cyberattacks.
In 2017, bitcoin went against all expectations hitting $20,000 price value before tumbling to $7,000 months after. It made a price recovery in 2018 and 2019 thanks to increased public awareness and adoption by institutional investors.
In 2020, the COVID-19 pandemic brought the global economy to its knees. Regardless, Bitcoin saw its rise to a high of $23,400, gaining over 200%. Bitcoin’s enormous price growth in 2020 was attributed to the inclination to Bitcoin by Wall Street institutions. The reason for this was to hedge funds following the tumbling of other financial markets.
Bitcoin’s growing acceptance by both institutional investors and consumer-facing companies was instrumental for its price growth witnessed in 2020.
Bitcoin kick-started 2021 at $29,048.39 amidst increased demand and interest from institutional investors and companies. The market was still pretty volatile, marked by short and sharp price fluctuations. Tesla’s founder and CEO announced the company had bought $1.5 billion in bitcoin and planned to accept it as a means of payment. As a result, it led to a big bull run that saw the coin hit an all-time high of $63,729.5 in April.
However, the crypto’s value started tumbling in mid-May owing to China’s intense crackdown on mining activities. Other negative headlines, notably Tesla’s CEO Elon Musk U-turn on his decision to accept Bitcoin payments. He termed Bitcoin mining activities as bad for the environment. Moreover, this led to the coin losing almost half of its market value, trading at $30,895.42 at the time of writing. In essence, 2021 has arguably been the most volatile year in Bitcoin’s trading history, evidenced by unstable prices with intense market movements.
Despite losing more than half of its value, Bitcoin has still got bright prospects. Numerous institutional investors and companies increasingly continue to adopt BTC after realizing its enormous potential. Various companies consider Bitcoin as a long-term institutional investment.
Bitcoin supply is capped at 21 million, and 18.5 million bitcoins have already been mined in its ten years of existence. Considering this, the increasing demand with a gradually diminishing supply will undoubtedly lead to a high price tag in 2025. Why? By then, there will be less Bitcoin to mine. The last Bitcoin is expected
Different crypto experts hold varied opinions regarding the price of Bitcoin in 2025. In one study to map the future outlook of Bitcoin, a panel consisting of 42 crypto experts. They included crypto asset managers and cryptanalysts, predicted the price of Bitcoin in 2025. The panelists predicted that the price of Bitcoin would be $318,417 by December 2025 and rise to $4,287,591 by December 2030.
They stated that the price prediction was possible due to increased adoption by corporations and institutional investors, increased asset inflation, and loose monetary policy. Besides, the next bitcoin halving will also be instrumental in propelling BTC to this price point.
In a tweet Pavel Shkitin, CEO at Nominex exchange emphasizes that all industries are looking forward to deeper crypto adoption by world’s leading corporations so it could raise the Bitcoin price to 6 figures even before the end of this year. The next halving cycle will show us increased adoption of Bitcoin as a legal tender by developing countries.
Pavel believes this trend will continue onwards and until 2025, Bitcoin will have replaced gold as a global reserve asset. It’ll start an enormous bull market and lead BTC prices to as high as $500,000.
Justin Chuh, Wave Financial’s senior trader, predicts that BTC will end 2025 selling at $210,000 per BTC. He claims that Bitcoin has proven itself as a tried and tested haven of digital assets. He also stated that it would reach the price point due to halving events and extreme inflation, triggering enormous price moves.
Max Keiser, the Host of The Keiser Report, predicts that BTC will be worth around $100,000 in 2025 and $400,000 in 2030. Robert Kiyosaki, the author of the New York Times bestselling book Rich Dad, Poor Dad, predicts BTC will reach $75,000 by 2020.
Developed by Bitcoin expert Plan B, the stock-to-flow price prediction model is a widespread mechanism of indicating the price of commodities and financial assets in the long run. The price prediction mechanism uses the assets’ digital scarcity, i.e., supply-demand mechanism, to predict the asset’s price at a particular point in time.
According to the stock-to-flow price prediction mechanism, Bitcoin will hit $100,000 at the beginning of 2025. The forecast also states it will rise to $150,000 by the end of the year.
Bitcoin halving refers to an event that occurs every four years where Bitcoin mining rewards are reduced by half. Currently, the mining reward is 6.25 BTC per block. However, it will reduce to 3.125 BTC in the next bitcoin halving expected to occur in the Spring of 2024.
The halving event will make bitcoin more scarce leading to a price rise. Historically, each Bitcoin halving event has been followed by an enormous price rise owing to the demand and supply rule.
Most crypto experts are optimistic that Bitcoin will rise in value by 2025, with its price ranging between $100,000 to $400,000 per BTC. 2025 will very much likely be the year of Bitcoin with a considerable probability of doubling its price. Increased institutional adoption, dwindling supply with the upcoming halving event, and increased fiat currency inflation are some of the reasons Bitcoin will grow in value by 2025.
Despite the optimistic predictions, the crypto market is highly volatile. It’s fostered by numerous extra factors such as global politics, business interest, global economic performance, and other factors coming into play in determining BTC’s price. Bitcoin’s market price is also increasingly being determined by enormous investors such as Tesla, led by its CEO Elon Musk. Such investors can cause a significant price movement by just a tweet.
Whether or not you should rely on these predictions to make a financial decision depends on your personal goals and investment strategy. However, one thing is almost certain: Bitcoin’s value and adoption will rise by 2025.
Tanveer Zafar is a independent crypto journalist. He is passionate in covering topics about Blockchain, Cryptocurrency and Markets. He has five years of writing experience in these areas of interest. You can find his pieces featured on FXStreet, Benzinga, Investing and many more finance magazines. Tanveer has done his BS in Software Engineering at GC University. Previously, he has worked as a banker.