The price of Bitcoin (CRYPTO: BTC) soared 119% in 2024, and the bulls have been out in full force lately, making predictions about where the cryptocurrency is headed this year. Most recently, the head of research at Fundstrat, Tom Lee, said the price of one Bitcoin could reach as high as $250,000 by the end of 2025.
That would be a staggering 160% increase in Bitcoin’s price if the high-end of Lee’s prediction proves true. Of course, no one knows for sure where Bitcoin is headed this year, but there are a few reasons Bitcoin bulls aren’t wrong to be optimistic. Here are a few things that could push the cryptocurrency higher this year.
1. Spot Bitcoin ETFs are driving interest higher
Last year, the Securities and Exchange Commission (SEC) approved spot Bitcoin exchange-traded funds (ETFs), which follow Bitcoin’s price movements. ETFs can be easily bought and sold like stocks, making them an easy way for investors to gain exposure to Bitcoin without having to buy the crypto itself.
There are currently 12 spot Bitcoin ETFs, two of the most popular being iShares Bitcoin Trust and Grayscale Bitcoin Trust ETF. Their widespread availability has helped push Bitcoin’s price higher. All these ETFs combined have more than $100 billion in managed assets, and CNBC recently said the launch of spot Bitcoin ETFs has been “one of the most successful ETF launches in history.”
To put that $100 billion invested in spot Bitcoin ETFs in perspective, there’s currently $125 billion invested in physical gold ETFs, which have been around for two decades. If their popularity in 2024 is any indicator, more investors may be willing to dip their toes into the Bitcoin ETF waters this year. If that happens, Bitcoin’s price will likely go up.
