Sid Powell, co-founder and CEO of the Maple Finance platform, shared his Bitcoin price forecast noting that the cryptocurrency could reach $200,000 by the end of 2025. This prediction is backed by anticipated institutional adoption and the impact of ETFs on the market.
Factors Driving Bitcoin's Growth
In an interview with CNBC, Powell highlighted several factors contributing to potentially driving Bitcoin's rally. Key growth points included institutional adoption and the possibility of establishing a strategic Bitcoin reserve in the US, which could solidify interest in cryptocurrencies.
Role of ETFs in Development
The Maple Finance CEO emphasized similarities between the launch of gold and Bitcoin ETFs. In the past, gold saw significant inflows following ETF launches, and Powell anticipates a similar development for Bitcoin. "Historically, if you look at it, when we've seen gold ETFs launch, the inflows in the first year have increased significantly in subsequent years, and I think we can expect to see that in Bitcoin ETFs as well," Powell noted.
Market Cycle of Cryptocurrencies
Powell also spoke about the cyclical nature of cryptocurrency markets. He noted that despite previous sharp corrections, increased institutional inflows could mitigate potential future price declines. For instance, Bitcoin rose to nearly $70,000 in 2021 but fell below $17,000 in 2022 following a series of major bankruptcies. Powell suggests such steep declines of 70%-80% seen in past cycles are less likely in 2025.
Powell's predictions suggest the potential for sustainable growth and development of Bitcoin in the coming years despite its cyclical nature. Institutional inflows and the development of infrastructure like ETF launches could play a key role in this process.
