H.C. Wainwright & Co., one of the oldest U.S. banks founded in 1868, forecasts a bullish year for Bitcoin (BTC), with new all-time highs projected by the end of 2025. Analyst Mike Colonnese shared this outlook in a January 2 interview, citing several catalysts for the upward revision.
Key Projections and Rationale
- Updated Price Target: The bank raised its bullish forecast from $145,000 to **$225,000** for late 2025, based on historical price cycles, recent performance, and anticipated regulatory clarity under the new U.S. administration.
- Regulatory Tailwinds: A more industry-friendly environment under Trump’s leadership and the availability of Bitcoin ETFs are expected to drive institutional adoption.
- Macroeconomic Factors: Bitcoin’s price has historically correlated with global liquidity (M2), which has declined since October, explaining recent market pullbacks.
Market Context
Bitcoin currently trades at $98,000**, down 10% from its recent ATH of **$108,000, but remains 120% higher year-over-year. Colonnese notes that 30% corrections are typical during bull runs and do not signal the end of the cycle.
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Broader Optimism in the Market
H.C. Wainwright’s projection aligns with other bullish forecasts:
- MARA Holdings CEO Fred Thiel predicts BTC could hit $200,000 in 2025, driven by ETF demand and potential national reserve adoption.
- Galaxy Digital estimates a more conservative $185,000, citing Nasdaq 100 companies and governments adding BTC to reserves for diversification.
FAQs
Q: Why does H.C. Wainwright expect Bitcoin to reach $225,000?
A: The projection combines historical cycle analysis, institutional ETF inflows, and a favorable U.S. regulatory shift.
Q: How reliable are these price predictions?
A: While optimistic, they reflect broader market trends. Always conduct independent research due to Bitcoin’s volatility.
Q: Could geopolitical events impact Bitcoin’s price?
A: Yes, macroeconomic shifts (e.g., liquidity changes) and regulatory developments remain critical factors.
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Disclaimer: This content is for informational purposes only and does not constitute financial advice.