Could Bitcoin Actually Hit $200,000 Before 2026?

Globe and Mail

22-06-2025

Bitcoin (CRYPTO: BTC) trades for about $105,000 (as of June 19), yet credible analysts are mapping a route to its price surpassing $200,000 by the end of 2025. For reference, a 90% price gain to $200,000 would raise Bitcoin's market cap to about $3.9 trillion.
That target looks unduly aggressive only if you ignore two simple forces: a sharply lower trickle of new coins, and a sharply higher amount of institutional demand. Both are already affecting the coin's price right now.
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Let's see what the numbers actually say and take a moment to understand why the forecast for $200,000 isn't unreasonable at all.
The supply squeeze is real, and intensifying
As always, understanding the supply and demand dynamics of Bitcoin is the first step to appreciating how responsive its price is likely to be relative to what buyers are bidding for it.
Every four years, the Bitcoin network halves the block reward, cutting the flow of fresh coins. The most recent halving on April 20, 2024, reduced the reward such that the total annual new issuance declined from roughly 328,500 coins to about 164,000.
With 19.9 million coins already mined out of a maximum of 21 million possible, new supply now grows less than 0.8% per year. In April 2028, the next halving will constrain supply even further, and that fact is something that most market participants are aware of already, implying that potential buyers have a significant incentive to procure their allocation sooner rather than later.
The tiny drip of new supply today is already meeting a hungry horde of demand.
Bitcoin exchange-traded funds (ETFs) have hauled in more than $46 billion cumulatively, including a six-day streak of $1.8 billion in mid-June. Those funds, institutional investors, and publicly traded companies together now command about 6% of the coin's total circulating supply.
At today's price, that capital removes roughly 360,000 coins from the public float, which is equivalent to more than two years of issuance at the current block reward. If the inflows simply persist at half their recent pace, the available supply could tighten by another 2% to 3% before 2026. And a shrinking float usually forces prices significantly higher because the number of willing sellers dries up faster than the number of willing buyers.
In other words, crypto market euphoria is not a precondition to Bitcoin soaring. The only needed ingredient is buyers who are willing to convert fiat currencies into ETF shares just a bit faster than miners are capable of creating fresh coins. And right now, that speed differential is widening, so the conditions are ripe for the price to squeeze upward.
Understanding the path forward
While supply dynamics explain why the crypto's price can rise, macro tailwinds explain why demand might keep accelerating.
On that front, U.S. core inflation cooled in May to its lowest reading since 2023. The Federal Reserve has held its benchmark interest rate steady since March; many investors are expecting that the Fed will cut rates a bit before next year. It's possible that lower real yields will make a scarce, non-yielding asset like Bitcoin more attractive.
Separately, regulatory clarity is also improving abroad, which will create more institutional buyers. The European Union's Markets in Crypto-Assets (MiCA) framework began licensing major exchanges in mid-June, opening a harmonized 27-nation market. Clear guidelines for competition reduce regulatory risk and invite European pension funds and other institutional investors to buy in, many of which had waited on the sidelines.
Nonetheless, the path to $200,000 is not necessarily a straight shot, given the current geopolitical and economic instability, as well as major uncertainties in U.S. trade policy.
A surprise liquidity crunch, perhaps sparked by a geopolitical shock or a renewed tariff-driven inflation spike, could dull risk appetite and force some selling, which could temporarily damage sentiment about the coin.
Political risk matters, too. U.S. lawmakers still debate crypto taxation and custody rules. A hostile bill could freeze ETF creation or raise costs, muting demand.
Assuming no severe shock, however, the chances of Bitcoin surpassing $200,000 in 2026 look realistic, if perhaps a bit ambitious. If ETFs absorb another $50 billion of the supply by late 2025, they would remove roughly 475,000 additional coins from circulation at an average cost basis of $105,000.
The good news for investors here is that it doesn't really matter if Bitcoin passes an arbitrary price target before an arbitrary point in time. Since the biggest upside for holders is over the long term, not the near term, the smartest move here is simply to buy the coin and commit to holding it.
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