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Traders are expressing optimism that Bitcoin could nearly double the current price of $98,000 to hit $180,000 if the Federal Reserve continues to cut US interest rates next year and demand from institutional investors increases significantly. Prices of the world's most popular cryptocurrency hit a new record high of $98,000 on Nov 21, attributed to optimism regarding Donald Trump's support for crypto heralding a boom for the industry as the US pivots to friendly regulations in place of a crackdown. Trump's transition team has begun to hold discussions over whether to create a White House post dedicated to digital asset policy.
Peerapat Hankongkaew, chief investment officer of Cryptomind Advisory, said it would not be surprising if the price of Bitcoin hits $100,000 soon, if factors support market confidence such as lower interest rates. Cryptomind, a Bangkok-based digital asset advisory, has predicted since the beginning of 2024 that if interest rates fell, capital would flow into riskier assets because of increased liquidity in the system. Each year, the advisory said there are positive factors that support the price of Bitcoin increasing a few times a year.
This year, the price of Bitcoin increased sharply in January on news that institutional investors were allowed to buy spot Bitcoin exchange-traded funds. In May, the dollar weakened considerably. The current price increase was spurred by Trump's victory in the US presidential election as he has generally supported Bitcoin, he said.
The current assessment is stable, though profit-taking could happen in the short term as investors tend to sell and take profits, said Mr Peerapat. "Therefore, we do not recommend buying more. If investors already own Bitcoin, we recommend holding on and waiting for supporting factors such as interest rate cuts and the dollar weakening," he said.
Recently the Fed signalled a delay in cutting interest rates, causing capital to move back to the bond market and the US stock market. As a consequence, capital is flowing out of emerging markets again, said Mr Peerapat. For the Bitcoin price trend in 2025, if the price breaks through $100,000, Cryptomind sees the next resistance at $115,000.
This would be followed by some correction from profit-taking before it surges to $180,000 if there are additional positive factors such as continued interest rate cuts, noted the advisory. If Trump can implement pro-crypto policies, demand should spike for Bitcoin and stablecoins such as USDT and USDC, which are pairs traded, with a bull run era expected, according to Cryptomind. However, investors must follow news on Bitcoin and use the information to make investment decisions because crypto is highly volatile and carries high risk, said Mr Peerapat.
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