The CEO of Binance, Changpeng Zhao thinks Bitcoin will go up in 2025. He said this in a Twitter Space on July 5th 2023.
Changpeng Zhao said that in past Bitcoin's price has gone up in four-year cycles. The last cycle peaked in 2021 and so the next cycle should start around 2025.
Halving event in 2024
One reason Changpeng Zhao thinks Bitcoin will go up is because of halving event in 2024.
Halving is the event when amount of Bitcoin that miners get for validating transactions is cut in half. Which makes Bitcoin more scarce and usually drives up the price.
Changpeng Zhao also thinks that more big investors will start buying Bitcoin in 2025. This is because more and more companies are starting to see Bitcoin as a good investment. For example 'BlackRock' the world's largest asset manager, just launched a Bitcoin ETF.
BlackRock is the world's largest asset manager, with US$9.09 trillion in assets under management as of April 14, 2023
Here are some other people who think Bitcoin will soar in 2025:
- Tom Lee, CEO of Fundstrat Global Advisors
- Crypto experts survey
- JPMorgan Chase
- Goldman Sachs
- Bloomberg
Remember these are just predictions and no one can actually predict future. Moreover the crypto market is very volatile and prices go up/down quickly.
Here are some factors that could contribute to a bull run in the crypto currency market in 2025:
Increased adoption by businesses and institutions: More and more businesses are starting to accept bitcoin as payment, and more and more institutions are starting to invest in Bitcoin. This increased adoption will likely drive up the price of Bitcoin.
Development of new use cases for crypto currencies: Crypto currencies are being used for more and more things, such as buying goods and services, investing transferring money, etc. As new use cases evolve and comes to forefront the demand for crypto currencies will likely increase.
Regulation of the crypto currency market: As the adoption and acceptance is growing the governments are starting to regulate it. This regulation would help to legitmize the market and attract more investors.
Also worth noting some factors that could hinder the expected bull run in 2025:
Global economic recession: If the global economy enters a recession, it could leat to a decline in the price of all assets, including crypto currencies.
Security breach: If there is a major security breach in the crypto currency market, it could lead to a loss of confidence in investors and other stakeholders triggering a decline in the prices.
Government crackdown: If governments crack down on the crypto currency market, it could also lead to decline in the prices.
Overall the crypto currency market is still in its early stages of development. It is impossible to say for sure what will happen in the future. However, based on factors mentioned above a bull run is enticipated in 2025.
Having said this all its utmost important to do your own research before investing in any market. Invest smartly, keep reading, keep learning.
Thanks for reading all through it, have a good day :)
All images are generated with Adobe Firefly