Despite Bitcoin’s recent surge past $100,000, investors in Russia doubt the crypto will hit the $200,000 mark anytime soon.
Bitcoin’s (BTC) rise past $100,000 has sparked excitement, though Russian investors aren’t counting on it hitting $200,000 this cycle, according to analysts polled by Russia’s state news agency TASS. They estimate Bitcoin could climb as high as $160,000 but don’t see it doubling its current price anytime soon.
As for the reason behind Bitcoin’s recent growth, analysts point to macroeconomic changes, such as the Federal Reserve’s rate cuts after a prolonged tightening phase, along with rising global liquidity and inflation concerns, which have driven investors to scarce assets like Bitcoin.
Institutional adoption is also a major factor, with companies like MicroStrategy and BlackRock quickly building up their Bitcoin holdings. In early December, MicroStrategy doubled down on its crypto strategy, acquiring 15,400 BTC for $1.5 billion, with an average purchase price of $95,976 per coin. With the latest acquisition, MicroStrategy’s crypto holdings now stand at approximately 402,100 BTC, valued at nearly $40 billion.
At the same time, Bitcoin options and exchange-traded funds are gaining more attention, with the latter nearing $113 billion in total net assets, per data from SoSoValue.
Despite the enthusiasm, analysts remain cautious about Bitcoin’s long-term outlook. Some see two possible scenarios: a “conservative target” of $130,000 and a more optimistic ceiling of $160,000 by mid-summer 2025. However, they agree that a $200,000 level, if reached, will likely not occur in the current cycle.
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Bank of America strategist Michael Hartnett earlier also flagged potential overheating in financial markets, pointing to the S&P 500’s remarkable 27% gain this year, what appears to be its best performance since 2019. With the index nearing its dot-com-era peak valuation, Hartnett predicts an “overshoot” for Bitcoin and stocks in early 2025.
Meanwhile, Bitcoin’s rise continues, with reports indicating that top tech giants are considering adding it to their balance sheets. As crypto.news previously reported, the National Center for Public Policy Research, an independent conservative think tank based in Washington D.C., has suggested that Amazon consider adding Bitcoin to its strategic reserve.
The proposal aims to use the company’s $88 billion in cash and cash equivalents, which includes U.S. government, corporate, and foreign bonds, to include Bitcoin in its reserve by the next annual meeting in April 2025. A few weeks ago, MicroStrategy founder Michael Saylor also proposed a Bitcoin reserve for Microsoft, although a final decision has yet to be made.
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