The projection is based in part on the potential advancement of bitcoin as a national reserve asset.
The friendlier environment for the industry under the Trump administration is driving optimism.
The American bank HC Wainwright & Co., which was founded in 1868, making it one of the oldest in existence, expects a bullish year for bitcoin (BTC). This was announced by the company’s analyst, Mike Colonnese, in an interview published on January 2.
The analyst reported that have increased their bullish projections for bitcoin in 2025. They previously predicted that the price of the currency would exceed $145,000 (USD) in the current cycle. However, they consider that this figure has fallen short given the scenario that is developing.
“We now estimate that BTC will reach $225,000 by the end of 2025,” said Colonnese as a spokesperson for HC Wainwright & Co. There are several reasons for this forecast.
According to the analyst, the 19th century bank bases this projection on “its analysis of historical price cycles and recent performance, along with the widely shared expectation of a more favorable regulatory environment for the digital asset industry in the United States to 2025 under the new government administration.”
Likewise, it adds as additional arguments “the availability of bitcoin exchange-traded funds (ETFs) in the United States and the acceleration of adoption by institutional and corporate investors.”
This does not mean, however, that there will be no price declines. HC Wainwright & Co. analyst clarified that 30% drops are common in bull runs. Therefore, it would not be surprising to see this type of phenomena during the year.
In this sense, the bank does not see the recent decline as the end of the bullish cycle. As the following graph shows, bitcoin is currently trading at USD 98,000, 10% below its all-time high of USD 108,000 recorded two weeks ago. Even so, it registers an increase of 120% in the last year.
Furthermore, the bank specialist warns that BTC price action has historically been highly correlated with global liquiditymeasured by M2. This metric has been on a downward trend since October, he notes, so the recent market decline makes sense.
HC Wainwright & Co. joins the bullish projections for bitcoin
HC Wainwright & Co.’s projection for bitcoin in 2025 is similar to others given by other specialists. On the same day, Fred Thiel, CEO of MARA Holdings, commented in a television interview that bitcoin could reach USD 200,000 this year due to multiple catalysts.
In tune with the bank, Thiel supports this view in Trump’s incoming policies and institutions’ growing appetite for ETFs. Although it also highlights the potential progress in the discussions of bitcoin as an asset for national government reserves.
At the same time, the investment company Galaxy predicted last week that five companies on the Nasdaq 100 and five national governments will include bitcoin, this year, in their reserves. In his opinion, this will occur for strategic and diversification reasons, as well as competition between non-aligned states and economic adversaries of the United States.
However, as reported by CriptoNoticias, Galaxy estimates a maximum price for bitcoin lower than expected by HC Wainwright & Co. Precisely, it predicts that it will rise to USD 185,000 in 2025, which demonstrates the different opinions that exist in the market, despite being exhibited a general optimism.
