Analyst Predicts Bitcoin Could Reach $800,000 in 2025

Perianne Boring, a prominent crypto lobbyist and CEO of The Digital Chamber, has made an intriguing prediction that Bitcoin’s value could soar to $800,000 in 2025. This statement was made during a recent interview on Fox Business.

What Happened: During the interview, Boring explained that her optimism about Bitcoin’s future price largely hinges on the potential policies proposed by President-elect Donald Trump.

According to Boring, if Trump successfully implements his plans regarding the cryptocurrency sector, the value of Bitcoin could not just approach $800,000, but potentially surpass $1 million.

Supporting Boring's prediction is the stock-to-flow (S2F) model, a tool originally developed for traditional commodities but now adapted for Bitcoin. This model indicates that the price of an asset tends to increase as its supply becomes rarer.

Boring stated, "The stock-to-flow model says it’s going to be at over $800,000 by the end of next year. If Donald Trump is successful in pushing forward many of his proposals aimed at the crypto community, the sky is the limit for Bitcoin, which has a fixed supply."

Interestingly, Trump had previously expressed doubts about cryptocurrencies during his earlier presidency, showing a more cautious approach. However, during his recent campaign, he has shifted position, promising to protect and nurture the digital asset industry.

In addition to this, he declared intentions to remove SEC Chair Gary Gensler and to end regulatory practices that restrict crypto investors and the use of digital assets by companies.

After winning the election, Gensler announced his resignation effective from January. Trump has also signaled a change in how the government manages its cryptocurrency assets, suggesting that the U.S. would no longer sell seized Bitcoin in the open market but would hold it as a long-term investment.

Why It Matters: Boring’s prediction is noteworthy as it connects the expected rise in Bitcoin’s value to the possible actions of the incoming administration. Trump’s evolving stance regarding Bitcoin, along with his commitment to safeguarding and advancing the crypto sector, could potentially drive up Bitcoin's market value significantly.

The decision to retain seized Bitcoin rather than liquidating it could reflect a new understanding of Bitcoin's worth as a long-term investment. This could further enhance demand and scarcity in the market, aligning with the projections made by the S2F model, and lead to the anticipated surge in Bitcoin’s value.

Bitcoin, Prediction, Trump