Bitcoin continues to trade under $100,000 to start the New Year after retreating from its record high near $108,300 in mid-December. Despite the recent pullback, analysts expect bitcoin to clear $200,000 this year as 2024 set the stage for accelerating gains. Cryptocurrency prices rebounded early Thursday.
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Bitcoin’s $100,000 Milestone: What Does It Mean For Investors?
H.C. Wainwright on Thursday wrote that it expects bitcoin to reach $225,000 per coin by the end of 2025. That’s up from its prior forecast for $145,000, The Fly reported.
The firm cited the historical price cycles of bitcoin, recent price action, and broad expectations for a more favorable regulatory environment under the incoming Trump administration as drivers for the digital assets industry in 2025. The availability of spot exchange traded fund products in the U.S., as well as accelerating institutional and corporate adoption should also accelerate price gains.
Wainwright wrote that 2024 set the stage for a “significant bull market” for bitcoin and crypto miners this year. The firm estimates the total market cap for bitcoin miners will exceed $100 billion in 2025, with pure-plays to outperform. Mining stocks are seen once again outperforming bitcoin in 2025 as fundamentals improve for the group.
Wainwright lists Mara Holdings (MARA), Riot Platforms (RIOT) and CleanSpark (CLSK) as its pure-play miners. The firm included Core Scientific (CORZ), Bitdeer (BTDR), TeraWulf (WULF), Hut 8 (HUT), Iren (IREN), Bit Digital (BTBT) and Hive Digital (HIVE) as hybrid miners.
Meanwhile, reaching the $225,000 milestone would imply a total market cap for the currency of $4.5 trillion. That represents about 25% of the total market cap of gold.
Bitcoin Stock Action
Bitcoin traded below $97,000 Thursday morning as it continues to climb from its late December low near $92,000. The price of bitcoin rallied almost 119% in 2024 and hit an all-time high around $108,300 on Dec. 17 before pulling back.
A majority of the crypto stocks mentioned in the research note have also pulled back in recent weeks as bitcoin retreated from its recent all-time high.
MSTR and MARA have broken down below key technical support levels.
RIOT stock is testing its 200-day moving average after some weeks of tight trading.
BTDR is trading near its record high of 26.24 from Dec. 24 and holding above its key moving averages.
IBIT and most of the spot bitcoin ETFs are holding up. More than a few — including IBIT, FBTC, GBTC, BITB, and BTCW — are poised for rebounds. If the ETFs score a rebound from their 50-day moving averages they will enter buy zones.
Coinbase (COIN) has also pulled back below its 50-day line.
Shares of the crypto stocks jumped about 4% or more early Thursday.
You can follow Harrison Miller for more stock news and updates on X/Twitter @IBD_Harrison
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