As the price of Bitcoin gradually approaches the $100000 mark, an analyst predicts that the rise of Bitcoin is far from over, and the price of this cryptocurrency will double in the next two years.
Mark Palmer, a senior analyst at The Benchmark Company, a New York investment bank, stated that he expects Bitcoin to soar to $225000 by the end of 2026. This means that the price of Bitcoin can still rise by about 133.5% compared to the current level.
Three major catalysts
He stated in the latest interview that this rebound will be mainly driven by institutional investors, and stated that "their interest in Bitcoin will continue to increase in the coming years".
Palmer compared the price of gold as an example. At the beginning of the 21st century, when investors and pension funds began to purchase gold exchange traded funds (ETFs), the price of gold began to soar. This development has opened the door for gold to become a more mainstream investment, with gold prices rising by 845% since the beginning of this century.
He further explained, "The reality is that many pension funds are underfunded. Bitcoin is an 'unrelated asset' with great potential for growth. Therefore, it is reasonable to include a portion of Bitcoin in the investment portfolio
If this situation continues and we continue to see institutions finding ways to incorporate Bitcoin and cryptocurrencies into their investment portfolios, then this will greatly increase demand for Bitcoin, which is how you can get higher prices, "he added.
Palmer also mentioned the factor of Bitcoin halving. He pointed out that in the past three halving events, Bitcoin experienced a "significant increase" in the following 14-16 months, demonstrating how supply and demand changes affect the price of cryptocurrencies.
Bitcoin halving is an important mechanism in the Bitcoin protocol, which halves every four years to control the issuance speed and total amount of Bitcoin and ensure its scarcity. Specifically, Bitcoin halving refers to a reduction in mining rewards.
In addition, the price of Bitcoin may also be supported by a more friendly cryptocurrency environment, and investors hope that Trump will help push up the price of cryptocurrency during his second term. Traders are looking forward to the elected president, known as the "crypto president," relaxing regulations and possibly establishing a national Bitcoin reserve, which he proposed in the months leading up to the election.
As part of efforts to reshape cryptocurrency regulation, Trump is considering appointing Chris Giacarlo as the new government's' crypto czar '. He served as the Chairman of the CFTC during Trump's first term, during which Bitcoin futures were approved for listing in the United States. The role of the crypto czar will be responsible for assisting in the implementation of crypto policies and may oversee industry led advisory committees.
Palmer said, "Just having someone focus on making the United States a leader in areas such as cryptocurrency and Bitcoin mining is a huge change
Watching the continuous rising sound
In fact, not only Palmer, but also Wall Street bigwigs have become increasingly optimistic about this cryptocurrency and set increasingly ambitious goals since Trump's victory.
For example, renowned American venture capitalist Tim Draper has been predicting the price of Bitcoin since 2014. In a recent interview, he stated that he expects the price of Bitcoin to reach around $120000 by the end of this year and $250000 by 2025.
He also mentioned that the proposed US Bitcoin reserve is a contributing factor. He said, "Assuming a standard supply and demand curve, if there is such a large buyer, the price will continue to rise. I believe that Bitcoin will eventually reach my $250000 mark by 2025