Analysts Revise Bitcoin (BTC) Price Prediction to $200K by 2025 Amid Network Activity Concerns

  • Analysts at Bernstein have updated their 2025 Bitcoin (BTC) price target from $150,000 to $200,000.
  • However, a high-ranking Fidelity executive warns that slow network growth could hinder short-term rallies.
  • “The slowing growth of Bitcoin’s network while its price continues to rise suggests a potential obstacle for future price increases,” stated Jurrien Timmer of Fidelity.

An in-depth analysis on the current state of Bitcoin, projecting its future, and identifying potential hurdles. Explore expert opinions on BTC’s trajectory.

Bitcoin Network Activity Falls Post-March High

The analysis by COINOTAG reveals a substantial drop in active Bitcoin network addresses since its apex of 1.1 million in early March. Currently, this number has declined to 620,000, emphasizing the decreased network engagement in the second quarter.

Impact of Non-Zero BTC Addresses on Network Growth

Supporting his analysis, Timmer points to the metrics of non-zero BTC addresses. These surged significantly to cross the 50 million mark in Q4 2023, boosted by increasing speculation around U.S. spot BTC ETFs. However, despite this upward trend, the overall decline in network activity has cast a shadow on Bitcoin’s potential rally.

“For Bitcoin to hit new highs, network activity needs to pick up again. This could perhaps be driven by the next phase of fiscal dominance,” asserts Timmer.

Bernstein Raises BTC Projection to $200K by 2025

Bernstein analysts have updated their BTC price forecast to $200,000 by the end of 2025, up from the previous estimate of $150,000. Key drivers cited include the expected increase in ETF demand and a looming BTC supply shock.

Projections Based on ETF Growth and BTC Supply Shock

The analysts predict that assets under management (AUM) for Bitcoin ETFs will escalate from the current $60 billion to $190 billion by 2025. Correspondingly, they foresee a 2.8 times rally in BTC prices, propelling it to $200,000 within the next two years.

In a statement to clients, Bernstein elaborated, “We anticipate Bitcoin rising to 1.5 times its marginal cost of production in the 2024-27 cycle, indicating a potential high of $200,000 by mid-2025.” This projection represents a significant appreciation from today’s BTC levels.

Conclusion

While expert forecasts suggest a bright future for Bitcoin with a potential to reach $200,000 by 2025, significant challenges like slow network growth could act as temporary speed bumps. Maintaining robust network activity will be essential for sustaining price rallies and achieving these ambitious targets.

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