Bitcoin to hit $200K by year end: Bitwise reaffirms bullish call

• Bitwise has reiterated its bullish call for Bitcoin to reach $200,000 by year-end.
• Bitwise said several of its December 2024 predictions for 2025 remain on track.
• The firm is less certain about the outlook for Ethereum and Solana, both of which have underperformed this year.

At the midway point of 2025, digital asset manager Bitwise has reiterated its bullish call for Bitcoin to reach $200,000 by year-end, citing surging institutional interest and a supportive regulatory backdrop.

However, the firm is less certain about the outlook for Ethereum and Solana, both of which have underperformed this year.

In a note to clients published Tuesday, Bitwise Chief Investment Officer Matt Hougan and Head of Research Ryan Rasmussen reviewed the firm’s 2025 forecasts, offering a mixed assessment of crypto market dynamics so far this year.

Bitcoin holds strong, ETH and SOL lag

“It’s been a mixed year for crypto asset prices,” Hougan and Rasmussen wrote.

“Bitcoin hit a new all-time high of $112,000 in May thanks to strong ETF flows, growing demand from bitcoin treasury companies, and the creation of a US strategic bitcoin reserve.”

Bitcoin’s gains stand in contrast to the performance of Ethereum and Solana, which are both down year-to-date.

The firm attributes this divergence to broader macroeconomic risks and uneven investor appetite.

Still, Bitwise remains optimistic about the second half of the year.

“We’re holding firm to our BTC $200k prediction, as there is simply too much institutional demand for BTC to keep prices flat for long,” Hougan said.

He added that while the firm is “less confident on ETH and SOL,” developments such as ETF approvals, rising interest in stablecoins, and the emergence of ETH and SOL treasury companies could provide upside.

Bitwise’s crypto predictions for 2025

Bitwise said several of its December 2024 predictions for 2025 remain on track.

The firm’s forecast that Bitcoin ETF inflows would surpass last year’s $35 billion is still in play, especially with expanded access to these products via major wealth platforms.

Bitwise also noted that two of its regulatory forecasts have materialized: the US Department of Labor rescinded crypto restrictions on 401(k) plans, and both Coinbase and Strategy (formerly MicroStrategy) secured positions in the S&P 500 and Nasdaq-100, respectively.

These moves have brought crypto exposure to a wider investor base through passive index-tracking funds.

Meanwhile, Bitwise said its prediction that at least five crypto unicorns would go public in the US in 2025 is now almost guaranteed, with firms like Circle, Webull, and eToro leading the charge in what has become a faster-than-expected IPO boom.

Not all bets are panning out. Bitwise acknowledged that the anticipated meme coin surge — led by AI-generated tokens — has not materialised.

The memecoin mania died down in Q1, Hougan said, pointing to the rapid collapse of politically themed tokens like TRUMP and MELANIA, as well as LIBRA, a coin linked to Argentina’s President Javier Milei.

Additionally, Bitwise’s forecast that Coinbase would surpass Charles Schwab in market capitalization and reach a share price of $700 is now seen as increasingly unlikely within the 2025 timeframe.

Its prediction that the number of countries holding Bitcoin in reserves would double — from nine to 18 — also appears ambitious, though the firm noted that recent disclosures by the United Arab Emirates and Pakistan have moved the needle.

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