Citi forecasts Bitcoin to surpass $100,000 in 2025
Citi analysts have projected a significant surge in the cryptocurrency market by 2025, largely influenced by Donald Trump's policies, increasing inflows into exchange-traded funds (ETFs), and advancements in stablecoin technology.
Following Trump's election victory, which the analysts deem pivotal, they noted that his administration's crypto-friendly stance has already enabled Bitcoin (CRYPTO:BTC) to exceed the $100,000 mark for the first time.
In a recent report, Citi analysts led by Alex Saunders highlighted that 2024 saw a remarkable 90% increase in total cryptocurrency market capitalisation.
They attribute this growth primarily to the successful launch of spot Bitcoin and Ethereum (CRYPTO:ETH) ETFs, which have simplified access for traditional investors.
"These flows have been the most significant driver of crypto returns, and we expect this to continue in 2025," the analysts stated.
The report also emphasises the potential for continued innovation in the stablecoin sector, which could challenge existing leaders like Tether.
Citi expects that as new entrants emerge and partnerships form within this space, systemic risks tied to reliance on single issuers will diminish.
As Trump prepares to take office in January 2025, his administration is expected to foster a more favorable regulatory environment for cryptocurrencies.
He has proposed establishing a strategic Bitcoin reserve and has appointed David Sacks as a key figure to develop a legal framework for digital assets.
The analysts foresee a shift from regulatory enforcement to a legislative approach, which they believe will alleviate previous obstacles to growth.
At the time of reporting, the Bitcoin price was $96,228.36.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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