Bitcoin could reach $170,000 by mid-2025.

Bitcoin reached a local high, rising above $52 thousand for the first time since December 2021. According to experts, this is due to the influx of capital into Bitcoin ETFs, the approaching halving and the policy of the American Federal Reserve. According to their forecasts, the world’s main cryptocurrency can overcome the level of $55 thousand, and in a positive scenario – up to $170 thousand by the middle of next year.

According to Coinmarketcap, last week Bitcoin rose above $52 thousand. The local maximum of Bitcoin was noted on February 15 – about $52.8 thousand. The last time Bitcoin traded at this level was in early December 2021. Other cryptocurrencies also showed positive dynamics. For example, ETH gained 10% over the week, to $2,780. The crypto market capitalization increased by 7.7% over the week.

Experts interviewed by Kommersant note that the growth of BTC had several prerequisites.

First, spot Bitcoin ETFs continue to attract capital. As of February 16, spot Bitcoin ETFs already own 258.7 thousand BTC with a total value of $13 billion, notes OKX Commercial Director Lennix Lai. In just a few days, the influx of ten Bitcoin ETFs amounted to 43.3 thousand BTC worth $2.3 billion, he added. This, according to the expert, indicates great interest in the new instrument on the part of the traditional financial market and gives reason to hope for a continued influx of institutional-level capital into the crypto market.

The sale of the Grayscale Bitcoin fund has come to naught; the decrease in pressure against the background of an influx of investments into the instrument has opened the way for growth for BTC, added the founder of Cross Finance, Alexander Mamasidikov. However, since the beginning of the year, more than $4 billion has been invested in Bitcoin ETFs, although the initial forecasts of institutional investors assumed an influx of about $1 billion, notes former Binance vice president Gleb Kostarev.

There are two months left before the Bitcoin halving. “Market participants are hoping that this event will trigger a new bull cycle in the crypto market, with investors increasing their positions in crypto in hopes of future growth,” Mr. Lai said. It can be assumed that it will turn out to be “sell the news – a signal to sell cryptocurrency, based on the assumption that the coin has reached a local maximum on euphoria,” says Mr. Mamasidikov: “Investors are trying not to miss their opportunity to make money.” Historically, after the halving, the price of Bitcoin continued to grow for about a year, updating its highs, Mr. Kostarev emphasized.

Another reason is that the American Federal Reserve is moving towards the start of a period of lowering the key interest rate after a long fight against inflation; investors have already begun to put their expectations into the cryptocurrency rate, he believes. According to the expert, lowering the Fed’s key interest rate will increase the investment attractiveness of high-risk assets such as cryptocurrency.

Additional factors influenced the growth of other cryptocurrencies, Mr. Lai said.

For example, he said, ETH’s growth was fueled by the announcement of the deployment of the Dencun update to the main network on March 13, which will bring Ethereum one step closer to scaling and increasing the efficiency of transactions. This has pulled up the entire sector of coins associated with blockchain ecosystems focused on decentralized applications – Cardano, Polygon, Polkadot, the expert said.

The sale of shares of the Grayscale Bitcoin Trust (GBTC), which was approved by the bankruptcy court last week at the request of Genesis, may put pressure on the bitcoin rate, Lennix Lai is convinced. In addition, after a wave of growth last week, Bitcoin may demonstrate a period of correction to accumulate strength before a new breakthrough, he believes. At the same time, according to the expert, indicators such as the index of fear and greed indicate a continued high appetite for risk and a positive attitude among cryptocurrency market participants.

Therefore, a scenario involving the growth of Bitcoin is also possible, says Mr. Lai. According to his forecasts, after Bitcoin managed to stay above $50 thousand, the next milestone for it will be $55 thousand. Mr. Kostarev notes that many analysts, including Anthony Scaramucci, founder of the SkyBridge fund, predict the price of Bitcoin in the range of $150-200 thousand .over the next year: “Specifically, Scaramucci expresses confidence that the price of Bitcoin will reach $170 thousand by the middle of next year.”

Ksenia Kulikova