Bitcoin (BTC), the world’s first and most successful cryptocurrency, has had quite a history in terms of price. The majority of people had not anticipated that Bitcoin can reach as high as it reached during the bullish run of 2021. Precisely, BTC reached $64,000 in April of 2021, reaching the milestone of $1 trillion in market capitalization. Most believe that one of the main reasons BTC had this extraordinary bull run was the BTC halving of 2020. The rise of BTC had so much impact on the whole crypto market, increasing the prices of other cryptocurrencies as well. But every bullish run is followed by a bearish one, and unfortunately for BTC holders, the price has dipped to around $37,000 as of June 1st, 2021.
Yet, what can be said for certain is that if the market continues to bleed, more and more experts and investors would feel bearish about the near future. But a dip in the price of BTC does not necessarily mean that investors are losing money. In fact, investors can take advantage of this decline in the price and perhaps profit in the long run.
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So what can we say about Bitcoin in the next 5 years? Let’s look at potential BTC price factors that may impact its price by the year 2025.
BTC Price Factors In 2025
Supply and Demand
The price of an asset revolves around supply and demand. BTC has a limited supply of 21 million, with 18.7 million already in circulation. Because of this, the price of BTC is not inflationary, unlike Ethereum, which has an unlimited supply. Due to the next BTC halving which is planned to occur in 2024, the supply of BTC becomes much scarcer. A shortage in the supply is likely to be followed by a price increase, as was the case in the bullish run of 2021. On the other hand, the demand for BTC increases as it gets more accepted in the world. Many companies in different countries are now accepting BTC as a means of payment. This increase in demand also causes a shortage, which is then followed by an increase in the price. So a decrease in supply and increase in demand from the BTC halving of 2024 may cause another bullish run in 2025.
Adaption of Blockchain
The largest online system of payments Paypal last year launched on their platform that People can buy directly through their app cryptocurrencies. Paypal has the world more than 400 million active users which makes it attractive and easy for most people to buy and hold cryptocurrencies. Only in Q4 in 2021 Paypal has reported $277 billion in total payment volume.
Along with Paypal, Facebook, Tesla, Robinhood, Twitter are planning to lunch crypto services to their platforms.
Mining Costs and Rewards
The BTC halving also has an impact on the mining process of BTC. Already in 2021, mining BTC is very expensive and sometimes might not be profitable. Moreover, the mining rewards are planned to half in 2024 from 6.25 BTC to 3.125 BTC for every block of transactions confirmed. As a result, mining BTC might become even more inefficient, as energy costs increase and mining rewards decrease. This could have an adverse effect on the price of BTC, but that has not necessarily been the case for BTC in previous halvings. Knowing that mining might not be profitable, investors might shift their focus from mining BTC to directly buying BTC coins.
Government Regulations
Another potential price factor for BTC in 2025 might be government regulations. Whenever a country bans cryptocurrencies, such as Turkey did in 2021, the price of BTC and other cryptocurrencies is negatively affected. If other big countries do the same, the price of BTC might decline even more. It is unlikely that the likes of the USA ban cryptocurrencies now, but it is still possible because cryptocurrencies are slowly replacing the USD for payments. On the other hand, if more countries adopt cryptocurrencies such as BTC into their payment options, the price of BTC increases. So changes in the rules and government regulations might have a price factor for BTC in 2025.
Media and Influencers
Lastly, media has an enormous effect on the price of a cryptocurrency. If the community behind a cryptocurrency is optimistic and promotes holding (HODL) BTC, more people are inclined to do so, which as a result might increase the price of BTC. Moreover, influencers in their social media pages can have a direct effect on the price of BTC. The likes of Elon Musk cause an immediate reaction in the price of BTC. When Elon’s company purchased a vast amount of BTC and tweeted about it, the price of BTC increased. When Elon Musk tweeted that mining BTC harms the environment, the price of BTC started decreasing. Elon Musk and other big wallets that have a lot of Bitcoin are considered whales that move the price of Bitcoin.
Tesla & Bitcoin pic.twitter.com/YSswJmVZhP
— Elon Musk (@elonmusk) May 12, 2021
Elon Musk’s tweet regarding BTC mining. Source: Twitter
Price of BTC after Elon Musk’s tweet. Source: Coinmarketcap
BTC Price Predictions For 2025
Walletinvestor predicts that the price of BTC can exceed the $100,000 milestone in the next 5 years. As of 2025, the price can range from $120,000 to $198,000, with the chance of reaching $200,000 as well.
WalletInvestitor also predicts that BTC can exceed $100,000 in the next 5 years. The average price can be around $115,000 in 2025.
But some experts have a more pessimistic approach to the future price of BTC. Longforecast predicts that the price of BTC can range from $270,000 to $600,000 in the first half of 2025.
BTC price prediction in 2025. Source: longforecast
Should I HODL My BTC Until 2025?
Crypto Academy price prediction for 2025 will be 2 million for each Bitcoin. Yes you’ve heard it right.
Judging by the price history of BTC, it is likely that the price can exceed its highest of all time at one point in the future. An in-depth analysis published on Invezz gives a similar outlook. Since the BTC halving is planned to occur in 2024, the new high might as well be in 2025, similar to the previous BTC halvings. This line of thinking suggests that holding your BTC might be very profitable in the long term, despite the current price declines. For what is worth, this price dip in BTC might benefit traders even more as it filters out unserious traders. After all, it is the world’s biggest cryptocurrency, and it is hard to think that another cryptocurrency can dethrone it in the short term.
Takeaways
- Bitcoin price in 2025 can be affected by the BTC halving of 2024, which can cause changes in supply and demand, as well as mining costs and rewards.
- Blockchain adoption by the largest financial institutions and governments.
- Most veteran financial experts predict that the price of BTC will increase by 2025.
- Holding your BTC until 2025 probably will result in high ROI as one of the best investments If we analyze the Bitcoin price history.