- Bitcoin could rise sharply as soon as interest rates fall in 2025 or 2026.
- The rise will be supported by debt-fueled corporate purchases, such as those by Strategy (MSTR), and the return of retail demand.
- There is also a need for gold-like assets amid geo-economic volatility.
- Bitcoin could close the year 2025 with a price between $150,000 and $180,000.
Half a Million Dollars Per Bitcoin
Bitcoin could be worth half a million dollars ($500,000) by February 2028 (expected halving period) as it faces a strong set of supportive factors like improving macroeconomics (described below), strong demand, and the need for its technology.
Binance Chairman Changpeng Zhao also supports the price estimate.
Factors Leading to Bitcoin’s Surge by Next Halving
Though there are several major and minor factors that push Bitcoin higher, we will keep our focus on the two largest factors: corporate demand and retail demand.
Other factors are:
- Government Bitcoin Reserves in the USA, El Salvador, Bhutan, and China.
- The need for a new digital substitute for Gold and Silver.
- The lack of stable prices of oil.
Debt-Fueled Bitcoin Purchases
Strategy (formerly MicroStrategy, MSTR) has made a template for debt-fueled Bitcoin purchases. Since the price of Bitcoin increases due to ever-growing demand, the debt repayments are always lower in cost than the returns on investment. Further, if a company uses convertible bonds as collateral, there is practically no time limit on debt payments.
This is the reason why GameStop, a company sitting on a $4.5 billion free cash flow, still raised $1.5 billion for its Bitcoin purchase.
MicroStrategy has already set the template, which is being actively followed in the market by companies like KULR, The Blockchain Group, Metaplanet, and several others.
Return of Retail Demand
Bitcoin’s retail demand has been low because of an increase in inflation and high interest rates in the USA.
Now that the US Consumer Prices Index (inflation) has reached below 2.5%, and we are expecting a sharp fall in Fed interest rates, the retail demand for Bitcoin could rise once again.
Related: If Fed Chairman Jerome Powell Resigns, Trump Could Get His 3% Rate Cut
Year-End Price Targets Already On Track
By the end of this year, we expect Bitcoin to cross $150k based on strong buying and on improving macroeconomics (interest rate, inflation). The price could reach as high as $180,000. However, if Donald Trump achieves his Fed Funds rate target of 1.5% to 1.75% before the end of 2025, the price of Bitcoin might even cross $200,000 by the end of 2025.
On the charts, Bitcoin has already shown a strong price structure. The price is already moving in an uptrend channel as shown below. This week, after achieving an ATH of $123k, Bitcoin again moved inside this channel. As long as Bitcoin moves inside this channel, the price target of $150,000 to $180,000 remains intact.
Disclaimer: Crypto markets are volatile in nature. All articles in this website are informational and are not financial advice. Please consult your financial adviser before investing.
