Bitcoin price prediction 2025: Scaramucci's view
Hopes for a cryptocurrency market recovery have created a bullish Bitcoin price prediction for 2025.
In 2022, the cryptocurrency market experienced a significant decline in value, losing around $1.4 trillion. The industry was plagued by liquidity problems and several bankruptcies, culminating in the failure of the exchange FTX.
However, according to Anthony Scaramucci, 2023 will be a year of recovery for Bitcoin. He predicts it could reach $50,000 to $100,000 within the next two to three years. He also emphasized that investing in Bitcoin involves taking on risk, but as we have faith in its increasing adoption, we could see things going the right way.
Why are experts expecting a bull run in 2024-2025?
Interviews with industry experts by CNBC revealed that the crypto market goes through regular cycles every four years. These cycles involve the cryptocurrency reaching an all-time high, followed by a significant correction and a period of recovery. The key event that precedes these cycles is known as "halving," where the rewards for mining Bitcoin are cut in half.
This slows down the supply of Bitcoin in the market, as there will only ever be a maximum of 21 million in circulation. Halving events, historically, have been followed by a bullish market trend, with the next halving set to occur in 2024. And for that reason, when we see a Bitcoin price prediction 2025, we tend to have a bullish outlook.
Nevertheless, Meltem Demirors cautioned that the events of 2022 have inflicted severe harm to the reputation of the cryptocurrency industry and the asset class as a whole. He said it would require some time for trust to be restored.
Other factors that could influence Bitcoin pricing
As well as watching the cryptocurrency market, it is worth paying attention to the broader economic situation. We have already seen a strong correlation between crypto and risk-oriented assets such as stocks, specifically the technology-heavy Nasdaq. These assets are impacted by fluctuations in interest rates determined by the Federal Reserve and other macroeconomic factors.
Last year, the Federal Reserve's attempts to decrease inflation by raising interest rates resulted in negative effects on risk assets.
Author: Harsh Verma
Harsh is the founder of FinEndorse SEO agency and is an experienced content writer and SEO expert with hands-on industry experience and a proven track of success.