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For Lee, a halving cycle similar to that seen in the past will follow.
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The change of government in the United States favors bullish expectations.
As the end of 2024 approaches, more specialists are releasing their price projections for Bitcoin (BTC) in the coming year. And Tom Lee, the head of research at asset management firm Fundstrat Capital, has not been far behind.
“We believe that a similar halving cycle will follow that we have seen in the past, which would imply something around $250,000 (USD) for bitcoin in 2025,” said Lee in a television interview on December 11.
The price of bitcoin has experienced a sustained upward trend for months after each halving. This event reduces the issuance of the currency by half every four years, which favors its appreciation with incoming demand.
Historically, bitcoin has reached its peak of each bull cycle the year after each halving. The most recent edition of this phenomenon occurred in April 2024.
This pattern can be seen in the following graph. That is why multiple specialists, like Lee, predict that the current rise in BTC will continue until 2025.
In addition to this, the Fundstrat manager added in the interview that the start of Donald Trump’s presidential term in 2025 strengthens his bullish projection. “Because bitcoin is potentially a strategic reserve asset for the United States government,” he said.
Screenshot of Lee during the interview. Source: Michael Saylor.
The Trump administration may favor bitcoin
It should be remembered that Trump has declared during his campaign his intentions to include bitcoin as a strategic national reserve asset. Besides, There is a bill in place for the United States to buy 1 million units of BTC. Consequently, other countries have presented proposals in Congress to do the same.
In addition, Trump has said that he wants the United States to become the “capital” of the industry behind crypto assets, removing the obstacles that limit its growth. “Bitcoin faced a huge regulatory burden in recent years and now we have a White House that is embracing digital assets,” Lee noted.
«He is also a president who is entering a second term with a lot of previous experience. “This will be a cabinet with good acceptance in the private sector and very favorable for the markets in general,” added the specialist. “Investors who may have been cautious in recent years will now want to take on more risk next year,” he said.
With this panorama, consider that markets in general will perform better in the first half of the year. “Because there will be a lot of excitement with a new presidential administration, positive headlines, deregulation, and there is still a lot of cash on the sidelines and low leverage,” he said.
These comments come after just over a month ago would predict that bitcoin would reach USD 100,000 before the end of the year. This projection was finally fulfilled last week.
At the beginning of 2024, Lee had said that USD 150,000 was possible for bitcoin this year, a goal that seems difficult to achieve given its current prices. Therefore, it is crucial to keep in mind that the projections of experienced specialists are no guarantee that they will come true; It all depends on the supply and demand of each moment.
The Fundstrat manager’s forecast on bitcoin for 2025 is similar to that given by other specialistssuch as asset management company Bitwise. It announced this week that it expects the price of the currency reach USD 200,000 next year. In fact, he expects that figure to become $500,000 if the United States government goes ahead with the proposal to have 1 million bitcoins.
Others, however, They predict lower values between USD 125,000 and USD 150,000, as reported by CriptoNoticias. This reflects the diversity of opinions on the future of the market, with a predominance of bullish expectations, whether less or more ambitious.
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