Bitcoin's path to $100,000: why it's highly likely to happen in 2 years

Source: Web3 Insights

Since its quiet launch in 2009, Bitcoin's path has been bumpy. This groundbreaking digital currency has experienced booms, busts, and heated debates about its staying power. Today, however, Bitcoin is among the top financial assets in the world, with one BTC worth around $38,000 at the end of 2023.

If multiple experts prove it right, then Bitcoin still has a long way to grow in the coming years, reaching $100,000 or more. In fact, based on historical patterns and upcoming catalysts, Bitcoin's six-figure price by 2025 seems plausible.

Bullish experts expect $100,000 by the end of 2024/early 2025 ?

Several major financial data expect Bitcoin to break through $100,000 by 2025. Standard Chartered believes Bitcoin can reach this goal by the end of 2024. In April 2022, the bank predicted that Bitcoin would reach $100,000 due to its emerging status as a safe investment asset, not just a speculative frenzy.

Standard Chartered reiterated its forecast in a follow-up report in November 2023, saying that "everything is going according to expectations" and that Bitcoin will continue to climb to $100,000. The bank believes that the approval of bitcoin exchange-traded funds (ETFs) in the United States could accelerate bitcoin's rise to new highs.

Other experts believe that $100,000 could be achieved sooner – by the end of 2023, although we believe that it is no longer reasonable to have only a month left before we say goodbye to 2023 and the price is still hovering just below the $40,000 level. Popular crypto trader Tone Vays expects global flows to trigger a rally to this milestone price point within a few months. Similarly, investment giant Fidelity Investments' Jurrien Timmer also sees Bitcoin reaching $100,000 by December 2023 based on a supply and demand model, which are positive signs heading into 2024.

Clearly, there is optimism that sooner or later Bitcoin will enter the rare market above $100,000. Now let's look at some of the key catalysts that could kickstart this mission to the moon.

Bitcoin ETF Coming Soon ?

One possible trigger was the approval of several Bitcoin exchange-traded funds (ETFs) by U.S. regulators. These special funds will track the price of Bitcoin for stock investors without having to buy the cryptocurrency outright.

In 2023, financial giants such as BlackRock, ARK Invest, Fidelity, VanEck, and others have applied for Bitcoin ETFs. Other fund managers such as Galaxy Digital, Valkyrie, WisdomTree, and Bitwise also have ETF applications pending approval. In total, about 10 separate Bitcoin ETFs are awaiting approval from the SEC.

The SEC keeps delaying decisions on these documents, but with increased cryptocurrency regulation and consumer protections, there seems to be no reason not to allow Bitcoin ETFs. If approved, trillions of dollars in retirement funds, endowments, and institutional accounts could begin to flow into Bitcoin – $100,000 worth of rocket fuel.

The Bitcoin halving in 2024 will lead to a tight supply

In addition to the ETF-fueled surge in demand, the changing supply dynamics surrounding Bitcoin itself could also drive the price higher. Enter Bitcoin's quadrennial halving.

Bitcoin's network code halves the mining rewards for earning new bitcoins roughly every four years to limit the total supply. These "halves" leave fewer coins for more users chasing finite bitcoins – textbook appreciation conditions.

There have been three halvings (2012, 2016, 2020). After each time, Bitcoin moves in a parabolic trajectory. For example, Bitcoin rose by more than 5,000% in a year after the 2012 halving! The next halving will occur in the spring of 2024. So, as 2025 approaches, an inherent supply shock could trigger a frenzy of price action, pushing prices up to $100,000.

Institutions are joining?

Of course, no investment climbs indefinitely. Since its inception, Bitcoin has gone through four major boom and bust cycles, including multiple bear markets with peaks and troughs falling by more than 80%!

However, Bitcoin managed to bounce back strongly from each winter, rewarding holders who survived the storm. This tried-and-true resilience makes Bitcoin quite safe for serious investors' portfolios. There's no doubt that the heavyweights are buying.

Major banks such as JPMorgan Chase and Goldman Sachs now offer cryptocurrency services to their clients. BlackRock's $10 trillion asset manager is looking for Bitcoin tools for its clients. Payment giants like Mastercard want people to transact through cryptocurrency. Now even governments hold Bitcoin.

Mass adoption is likely to spread further as institutional giants increase Bitcoin's legitimacy. The steady inflow of capital into the limited supply suggests that Bitcoin's scarcity will become more pronounced by 2025.

Historical pattern pointing to 6 numbers?

Narrowed down, Bitcoin has risen by millions since its inception. But compared to breakthrough technologies like the internet, it seems to be in its early stages rather than in its late stages. Most people on the planet don't own cryptocurrencies yet. As the issue of government-backed cash persists, decentralized currencies like Bitcoin are more attractive to individuals and businesses.

If Bitcoin develops into a global alternative financial network for the digital generation, there is still a lot of room for it to grow. Visionary experts believe that the $100,000 milestone will mark the path to mass adoption of Bitcoin.

Against this backdrop, a valuation of $100,000 by 2025 doesn't seem far-fetched, based on historical patterns. Past halvings have occurred before prices have risen significantly. At the same time, the bigBrain institution continues to challenge the Bitcoin bar for the first time.

So, as we prepare ahead for the 2024 halving and a possible ETF green light, Bitcoin seems well-positioned to top $100,000 in the next two years. Of course, forecasts are not guaranteed. But this time, the epoch-making Bitcoin bull market seems to be more of a structure-driven lottery than a blind gamble.

Conclusion: $100,000 Just Another Mountain to the Bitcoin Summit?

Given the short- and long-term price catalysts and the growing public familiarity with Bitcoin, credible cases suggest that its valuation could exceed $100,000 by the end of 2025. In the big picture, this is just the latest milestone in Bitcoin's journey, not any final destination.

Although predictions of the future value of any asset are still inaccurate, the outlook for Bitcoin seems very positive heading into the second half of the century. The upcoming ETF approval seems likely to provide a new fiat avenue for participation in Bitcoin. At the same time, as awareness grows, the 2024 halving could limit supply.

Don't make mistakes; Unforeseen events can cause even the best predictions to fall short. But based on underlying market forces, Bitcoin's rally shows no signs of stopping. This makes $100,000 in two years a realistic next goal, with the potential to reach six figures or even higher.