Latest news with #institutionalDemand
Globe and Mail
22-06-2025
- Business
- Globe and Mail
Could Bitcoin Actually Hit $200,000 Before 2026?
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. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » 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. Should you invest $1,000 in Bitcoin right now? Before you buy stock in Bitcoin, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Bitcoin wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $664,089!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $881,731!* Now, it's worth noting Stock Advisor 's total average return is994% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025
Yahoo
24-05-2025
- Business
- Yahoo
Bitcoin Climbs on Institutional Demand, Trump Backing
Bitcoin surpassed $111,000 for the first time on Thursday, driven by increasing institutional demand and support from Donald Trump's administration. It climbed as much as 3.4% to hit a record of $111,980, before paring some of the increase. Bloomberg's Emily Nicolle reports. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Crypto Insight
24-05-2025
- Business
- Crypto Insight
US Bitcoin ETFs near record month after $1.5B inflows in 2 days
Spot Bitcoin exchange-traded funds (ETFs) in the United States are heading for a record-breaking month, helping push Bitcoin to new all-time highs amid rising institutional demand. The US-listed spot Bitcoin ETFs recorded more than $1.5 billion in combined inflows over a two-day period, with $608 million on May 21 and $934 million on May 22, according to data from Sosovalue. A repeat performance of the past two days' inflows would see monthly inflows surge to $6.68 billion, surpassing the monthly record of $6.49 billion from November 2024. ETF inflows helped Bitcoin rise to a new all-time high of $112,000 on May 22 before retracing to above $110,700 on May 23, up over 19% in the past week, TradingView data shows. The 'robust' ETF inflows and Bitcoin's rise to new all-time highs signal growing institutional demand and rising realized profits 'without increased sell pressure,' Nexo dispatch editor Stella Zlatareva told Cointelegraph. 'Institutional inflows, corporate balance sheet moves, and macro dislocation converge into a clear message: Bitcoin is no longer the alternative — it's becoming the benchmark,' she added. Recent surges in ETF demand coincided with $1 billion worth of Bitcoin being withdrawn from Coinbase on May 9 — a move analysts view as a signal of increasing institutional appetite. Institutional inflows to push Bitcoin to $200,000 in 2025 The 'structural' inflows from institutions may help Bitcoin surpass the $200,000 'base case' before the end of 2025, according to Bitwise's head of European research, André Dragosch. 'So the base case is $200,000, conditional on the US government not stepping in. If they step in, it will move closer toward $500,000,' Dragosch told Cointelegraph, referring to the US government's proposition to make direct Bitcoin acquisitions through 'budget-neutral' strategies. Bitwise's 'in-house prediction' for 2029 is a $1 million Bitcoin price target, as Bitcoin's market cap will surpass the market capitalization of gold, as the leading safe-haven asset, Dragosch explained. However, gold's $22.3 trillion market capitalization is still over 10 times larger than Bitcoin's $2.2 trillion, which makes BTC the world's fifth-largest asset, according to CompaniesMarketCap data. Source:
Bloomberg
23-05-2025
- Business
- Bloomberg
Bitcoin Climbs on Institutional Demand, Trump Backing
Bitcoin surpassed $111,000 for the first time on Thursday, driven by increasing institutional demand and support from Donald Trump's administration. It climbed as much as 3.4% to hit a record of $111,980, before paring some of the increase. Bloomberg's Emily Nicolle reports. (Source: Bloomberg)
