Bitcoin is the first and most widely adopted cryptocurrency in the world. It was created by Satoshi Nakamoto, who first outlined its technology in a white paper in 2008. In basic terms, Bitcoin is a digital currency that allows peer-to-peer transactions to be recorded on the Internet. It is considered a volatile investment, and in this blog, we will look at the Bitcoin forecast for 2025.
Bitcoin forecast: Summary Table
|🤯 Is bitcoin the most popular cryptocurrency?||Yes|
|❓ What technology does Bitcoin use?||Blockchain|
|🤔️ Is bitcoin the most expensive cryptocurrency?||Yes|
|🧑 Who can invent Bitcoin?||Anyone|
Many people consider Bitcoin cryptocurrency to be an asset worthy of investing in, and as assets go, it has one of the most volatile trading histories of all. The Bitcoin network was first launched in 2009. One Bitcoin consists of 100 million Satoshis. It is the smallest Bitcoin unit, divisible up to eight decimal places. It means that anyone can buy a fraction of a Bitcoin for pennies, although all Bitcoin exchanges specify a minimum buy price, which here in the UK starts at around £20.
To give you an illustration of Bitcoins’ wild volatility, have a look at the following summary:
|Time Period||Value of 1 BTC|
|January 2009 to March 2010||$0.00|
|February 2011 to April 2011||$1.00|
The dates and values shown above are a few snippets in the history of Bitcoin (BTC) to date, and they clearly show the wild, volatile tendency of cryptocurrency. So what is the Bitcoin forecast for 2025, and how accurate can we expect it to be?
The bitcoin price forecast for 2025
Given the high volatility nature of BTC, a Bitcoin forecast is most unlikely to be that accurate. If we take a look at forecast extremes over the next six months, you’ll see what we mean.
There are several Bitcoin and cryptocurrency predictions for 2025. According to an analysis conducted by Mike McGlone, Bloomberg’s Senior Commodity Strategist, Bitcoin is expected to reach the $100,000 mark by 2025 due to limited supply and favourable macroeconomics. A research analyst at Arcane also predicts that Bitcoin will hit $100,000 by 2025.
As of October 2022, a finders survey with over 50 fintech experts predicts that the price of Bitcoin will rise to $79,193 by 2025, which is different from a similar report in April 2022 that predicted the price of bitcoin will be around $179,280 by 2025.
The market analysis done by wallet investor, digital coin price and Gov. capital shows a price coin price forecast of $28,606.59, $44,359.71, and $93,993.09, respectively.
Dr John Hawkins, a senior lecturer at the University of Canberra, has a bearish Bitcoin price prediction for 2025. He estimates the price of Bitcoin to be $100 in 2025.
With all these BTC price forecasts, the potential price movements are one of the reasons why investing in bitcoin comes with a risk warning. There is huge upside potential, but you can also lose it all.
The influences that affect the BTC price
With such wide volatility in its price, it is important to understand what influences the price of BTC, particularly when looking at the Bitcoin price forecast. Supply and demand affect the prices of most things, and Bitcoin is no different.
How supply and demand influence any Bitcoin 12-month forecast
The acceptance of BTC by the general public significantly affects its price. The more popular BTC is, the higher its price will rise, while low demand will decrease its value.
With Bitcoin being the flagship of cryptocurrencies, where it leads, other cryptos tend to follow. With more and more people, corporations, and investors beginning to use bitcoin and other cryptos for online transactions, it is reasonable to assume that the Bitcoin price forecast will remain positive.
Other significant factors that have to be considered with any Bitcoin forecast are local rules and regulations. BTC is decentralised. In other words, it is not linked to any specific central government. It means that specific government statements or decisions can and will impact its price.
Crypto industry regulations can also have an impact. Hard and soft forks can alter the quantity of Bitcoin in circulation, changing how investors perceive the currency at any one point in time. For example, in August 2017, the forking of the bitcoin blockchain into Bitcoin Cash caused a spike in volatility, increasing the valuation of both coins.
The other things that can influence and have a bearing on a Bitcoin-to-pound forecast include:
- The cost of acquiring BTC through the mining process
- The rewards that miners get for verifying blockchain transactions.
- How competing cryptocurrencies are faring.
- World news.
General news items such as the Coronavirus pandemic caused different reactions to the price of Bitcoin. When the pandemic was at its most virulent, the Bitcoin price rose significantly because people confined in their own homes took to the Internet in great numbers to carry out various research to ward off boredom.
But when new strains of the virus were identified, it had the reverse effect by causing the price to drop.
What you need to appreciate about bitcoin price projections
A Bitcoin long term forecast is probably about as accurate as having your fortune told. The severe volatility of any cryptocurrency makes it impossible to predict where its price will be in several days, let alone in several years. Whether you are looking at a Bitcoin 12-month or three-month forecast, it could be wildly inaccurate.
Reducing your risk when investing
With any investment, the advice on reducing the amount of risk is the same. Invest long-term and diversify. By diversifying, we don’t mean investing in several cryptocurrencies. Rather, crypto should be only one part of a diverse portfolio alongside many other non-crypto products. Also, you can have an investment portfolio with exposure to several cryptocurrencies on the crypto market if you invest in a crypto ETF.
The other key piece of advice is to invest long-term. The critical danger of investing in something like Bitcoin is being forced to sell it for cash flow when the bottom has fallen out of the market.
What affects bitcoin prices?
Several factors can influence the price of bitcoin. They include the supply and demand of bitcoin, the actions and sentiments of bitcoin investors, media hype on bitcoin, and government regulations.
How high can bitcoin’s price go?
Rarely do we read crypto news without seeing someone’s prediction for where Bitcoin’s price will go next. But unfortunately, nobody knows precisely how high or low the value of a bitcoin will go. Bitcoin has risen to over $60,000, and some speculate it will increase to $100,000. But investors should be sceptical of these price forecasts.
Is bitcoin safe to buy?
One of the safest ways to buy bitcoin is through a government-approved exchange like Coinbase. However, if you want to invest in Bitcoin for preservation or growth purposes, its price is extremely volatile. As a result, there is no guaranteed return on investment.