Bitcoin may hit $160,000 by end of year, expert says

Bitcoin is currently trading above $105,000, buoyed by a new pro-crypto president, a Republican-controlled House and Senate that might support favorable policies, the departure of Gary Gensler from the U.S. Securities and Exchange Commission (SEC), and the looming possibility of Trump establishing a bitcoin strategic reserve.

Beyond the political environment, the price is also being bolstered by growing institutional adoption by major Wall Street players like BlackRock. Analysts are also eyeing potential Federal Reserve interest rate cuts in 2025, which could inject more liquidity into the market, further amplifying demand for cryptocurrencies like bitcoin.

With these bullish signals in play, some crypto analysts are projecting significant price surges throughout 2025. Utkarsh Ahuja, the founder of Moon Pursuit Capital, told TheStreet Crypto that bitcoin was likely to hit a minimum of $120,000 "before experiencing a gradual correction."

"This is typical as capital shifts from bitcoin into altcoins, marking the start of the altcoin season," Ahuja told TheStreet Crypto. "We expect volatility in bitcoin’s price during the spring and summer of 2025, followed by a sharp recovery in the third quarter, with a potential fourth quarter peak at $160,000 [in a] base case – or even $240,000 [in a] bullish case."

While the outlook remains optimistic, experts caution that external factors such as regulatory developments, macroeconomic conditions, and market sentiment could influence bitcoin's trajectory.

"While it’s easy to attribute political events as strong sentiment drivers, bitcoin’s current rally likely reflects multiple trends such as institutional recognition of crypto’s role as a hedge, the perception that in an increasingly unstable geopolitical landscape that it represents some kind of safe-harbor, ever growing global adoption, and a rising appetite for decentralized financial systems amid economic uncertainties," said James Toledano, Chief Operating Officer at Unity Wallet.

"We are also most definitely seeing a surge in institutional adoption, particularly as traditional finance firms respond to the market demand for bitcoin-based financial products and beyond. Institutional momentum will certainly continue to accelerate over the next year, with further inflows into ETFs [exchange-traded funds], new ETF products coming online, more self-custodial solutions, and new blockchain integrations," Toledano added. "However, as history suggests, parabolic price increases can also signal heightened volatility and profit-taking, potentially cooling the bull run."