On Tuesday, the price of bitcoin skyrocketed to more than $108,000 in New York, reaching a new milestone of $108,135. The price jump reflected sustained gains for the world’s leading cryptocurrency, which saw a 12% increase over the past week.
"We’re seeing true price action – bitcoin is moving higher," said David Foley, co-managing partner of the Bitcoin Opportunity Fund, a hedge fund investing in the bitcoin ecosystem.
Companies like MicroStrategy, which recently broke into the Nasdaq 100, were among the reasons for bitcoin's upward push. Michael Saylor's firm – nominally a software company – has emerged as a major bitcoin investor, as the world's largest corporate buyer of bitcoin. As a result, MicroStrategy stock is now widely considered a proxy for bitcoin. On Monday, the firm announced the additional purchase of 15,350 bitcoins for approximately $1.5 billion.
Analysts predict that bitcoin could surge to as high as $200,000 by mid-next year.
“Our minimum price target for bitcoin remains at $140,000 - $200,000 around mid-2025,” Bitfinex analysts said.
“The current bull market reflects strong institutional demand, led by ETFs and spot accumulation. Historical data suggests we are mid-cycle, following the April 2024 halving, with the market likely to peak around [the third and fourth quarter of] 2025, approximately 450 days post-halving,” Bitfinex analysts continued. “Historically, post-halving years have seen the strongest rallies.”
While bitcoin’s price might oscillate in early 2025, analysts contend that steady price growth will remain likely for a variety of reasons. “The broader trend points to further price appreciation, supported by ETFs [exchange-traded funds], institutional adoption, and bitcoinʼs increasing prominence as a global asset," the analysts said.