Bitcoin is expected to face its defining moment in 2025. With its price surpassing the $100,000 mark in late 2024, the crypto finds itself in the centre of hot debates with optimist investors expecting the bull rally to continue while skeptics cautioning against speculative excesses.
2025 may cement Bitcoin’s legitimacy or expose its vulnerabilities with governments, retail investors, and institutions shaping its trajectory this year. Bitcoin’s performance this year is expected to echo far beyond the crypto world. Amid the rise and fall of Bitcoin, enters DeepSeek—a Chinese startup with its newest open-source AI model R1 that seems to be challenging the hegemony of the US AI models such as OpenAI’s ChatGPT.
According to DeepSeek, Bitcoin price is expected to surge up to $250,000 by the end of 2025 with a handful of reasons attached such as institutional adoption, macroeconomic trends, regulatory developments, and more:
Bitcoin halving
The cut in supply of new tokens following the April 2024 Bitcoin halving event is expected to push Bitcoin’s price. DeepSeek suggests that historically, halving events have led to major price movements due to reduced supply and increased scarcity. For example, 2012, 2016, and 2020 events witnessed bull runs with prices growing between 10x to 20x within 12-18 months post halving.
If the trend continues, Bitcoin might see a price surge by the end of 2025. Already, Bitcoin has risen 60 per cent from $66,000 in April 2024 to $106,000 as of January 22, 2025.
Also ReadDeepSeek’s rise, Bitcoin’s fall: More volatility ahead for world’s largest cryptocurrency?
Institutional adoption
The institutional interest in Bitcoin by major companies, hedge funds, and asset managers adding Bitcoin to their portfolios, coupled with the approval of Bitcoin ETFs, for instance, in the US, is likely to further legitimize Bitcoin as an asset class, attracting billions in institutional capital, according to DeepSeek.
In addition, the adoption of Bitcoin as a legal tender by El Salvador and the Central African Republic may increase global adoption.
Macroeconomic and regulatory factors
Macroeconomic factors can also be a reason for the increase in Bitcoin’s prices. DeepSeek said persistent inflation and currency devaluation in the major economies could lead to increased demand for Bitcoin as a hedge against fiat currency erosion. Furthermore, if central banks continue to ease monetary policy with lower interest rates or quantitative easing, Bitcoin may benefit as a non-correlated asset. Another factor around rising global debt levels and potential financial instability, says DeepSeek, could increase demand for decentralized assets like Bitcoin.
Also Read‘Bitcoin’s market cap will surpass gold in year…’: Coinbase CEO predicts
Regulatory-wise, clear and favourable regulations in major markets such as the US and EU could encourage broader adoption and investment.
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