Bitcoin could reach a price between $180,000 and $200,000 by the end of 2025, according to Sid Powell, co-founder and CEO of decentralized finance platform Maple Finance. Powell shared his bullish prediction on CNBC’s “Squawk Box Europe,” citing the anticipated growth of Bitcoin ETFs and the potential establishment of a U.S. Bitcoin strategic reserve as key drivers.
Powell compared the expected trajectory of Bitcoin ETFs to the historical performance of gold ETFs, noting significant increases in inflows in the years following their introduction. He believes a similar pattern will emerge with Bitcoin ETFs as institutional asset managers increasingly incorporate the cryptocurrency into their core asset allocations. This influx of institutional investment is expected to propel Bitcoin’s price upwards.
The potential creation of a U.S. Bitcoin strategic reserve is another factor Powell believes will contribute to the cryptocurrency’s price appreciation. While details surrounding such a reserve remain speculative, the move would signal growing governmental acceptance and potentially drive further institutional adoption.
Despite his optimistic outlook, Powell acknowledges the inherent volatility of the crypto market. “I think you’ll of course see corrections — crypto remains a cyclical industry,” he cautioned. Bitcoin’s history is punctuated by periods of rapid growth followed by sharp declines. The 2021 surge to nearly $70,000, followed by the 2022 crash to below $17,000 amidst a wave of crypto company bankruptcies, serves as a stark reminder of this cyclical nature.
However, Powell believes the severity of previous market downturns, often characterized by 70% to 80% drawdowns, is less likely in 2025. He attributes this to the “buffer” provided by increasing institutional investment, which he argues will provide greater stability to the market.
