Bitcoin Expected to Reach $200K by End of Year according to Major Banks
Bitcoin has been gaining momentum in the past week, surging by more than 13% and inching closer to its record high of nearly $124,500. Prominent financial institutions on Wall Street and in the UK are increasingly optimistic about Bitcoin’s potential, with projections hinting at new all-time highs by the end of 2025, ranging from $133,000 to $200,000.
Citigroup, among the major players in the financial industry, is forecasting a price target of around $133,000 for Bitcoin by the conclusion of 2025. This prediction is underpinned by substantial inflows from spot Bitcoin exchange-traded funds (ETFs) and the expanding allocations towards digital asset treasuries, deemed as primary factors behind the sustained price appreciation that Citigroup envisions. Notably, U.S.-based Bitcoin ETFs are currently managing over $163 billion in Bitcoin, with an additional inflow of $7.5 billion anticipated before the year’s end. However, Citigroup’s bear case scenario envisions a drop in Bitcoin’s price to $83,000 in the event that recession risks intensify.
On the other hand, JPMorgan strategists, led by Nikolaos Panigirtzoglou, present a more optimistic outlook by suggesting that Bitcoin remains undervalued in comparison to gold. Their analysis correlates Bitcoin’s market cap with the $6 trillion private gold holdings, theoretically suggesting a price target of $165,000 once parity is achieved. To support their bullish stance, JPMorgan points to the sustained ETF inflows and the potential for a cycle of rate cuts by the Federal Reserve. Furthermore, they emphasize that Bitcoin’s risk profile, when adjusted for volatility, closely mirrors that of gold, reinforcing the argument for further upside potential.
Standard Chartered, setting forth an even more bullish narrative, forecasts that Bitcoin could potentially hit $200,000 by December 2025. The bank attributes this surge to consistent ETF inflows averaging over $500 million per week, combined with a weakening U.S. dollar and improving global liquidity conditions. Conversely, VanEck projects a price target of $180,000 for Bitcoin in 2025, citing supply dynamics post-halving and historical price cycles as key drivers.
Regarding the timing of Bitcoin’s cycles, Saad Ahmed from Gemini has indicated that the traditional four-year cycle of Bitcoin, historically peaking 365 to 550 days after a halving event, might extend into 2026. He suggests that this cyclical pattern is more influenced by human emotion than purely mathematical fundamentals, implying a potential continuation past the projected conclusion in 2025.
