Crypto Company Bitwise, Managing $5 Billion, Shares Bitcoin Price Predictions for End of 2025 and 2029

Bitwise Asset Management has released the January 2025 Bitcoin Macro Investor Report, summarizing the current challenges and long-term potential for Bitcoin.

Crypto currency market, despite facing macroeconomic resistance, the report states that Bitcoin is supported by data on the blockchain and is in a good position to outperform traditional assets in 2025 and beyond.

In December 2024, Bitcoin faced obstacles such as profit taking, reduced institutional exposure, and a tightening financial environment. The strengthening of the US dollar and the Federal Reserve's policy adjustments further suppressed the market. Last month, the Fed lowered interest rates by 25 basis points and signaled that future rates could stay higher than previously anticipated.

Global liquidity continues to decrease and Bitcoin's performance creates additional pressure by being dependent on traditional markets such as S&P 500.

According to Bitwise, despite these challenges, the fundamentals of Bitcoin continue to remain strong. Indicators on the chain point to flexibility, driven by increasing ETF activity, institutional treasury assets, and the supply gap created by individual demand. Key metrics such as decreasing currency balances and rising network hash rates further highlight the market's strength.

Long-term factors such as the Bitcoin halving and increasing adoption as a strategic reserve asset are expected to lead to a significant increase in prices. Bitwise reiterated its prediction that Bitcoin could reach $200,000 by the end of 2025 and potentially $1 million by 2029.

Bitwise sees macro-driven existing sales as a buying opportunity for investors. The report said, "Any short-term macro-driven sales could be an attractive opportunity to increase exposure to Bitcoin and other crypto assets."