Bitcoin price dips will be short-lived in 2025 due to strong institutional demand, say Bitfinex analysts, who predicted a best-case scenario of Bitcoin doubling in price by June 2025.

Bitfinex analysts said in a Dec. 17 market report that their minimum price estimates “stand at $145,000 by mid-2025, potentially stretching to $200,000 under favorable conditions.” 

Bitcoin volatility expected in first quarter

“Our view is that any corrections in 2025 will remain mild, thanks to institutional inflows,” the analysts said. They noted that while Bitcoin ( BTC ) volatility is expected in Q1 2025, the broader trend suggests continued price growth, driven by ongoing inflows into spot Bitcoin exchange-traded funds (ETFs) and increased global and institutional adoption.

About $36 billion has flowed into United States-based spot Bitcoin ETFs since they launched in January, Farside Investors data shows.

“The BTC ETFs are one of the largest cohorts of Bitcoin holders at over 1.13 million BTC,” the analysts said.

Bitcoin may hit $200K by mid-2025 as price drops ‘will remain mild,’ says Bitfinex image 0

Bitcoin was trading at $105,360 at the time of publication. Source: CoinMarketCap

At the time of publication, Bitcoin was trading at $105,360, a price that Castle Island Ventures’ partner Nic Carter said could grow nearly ninefold in the long term.

“Long-term, I’m looking for Bitcoin to match the market cap of gold, which would price Bitcoin at $900,000,” Carter told Bloomberg Television on Dec. 17.

Bitcoin author Andy Edstrom said on Dec. 16 that he is already “struggling to get used to the fact that $1,000 is less than a 1% move in Bitcoin’s price.”

Bitfinex analysts said that if Bitcoin mirrors the 2021 cycle, with a roughly 40 percent increase above its moving averages, it could potentially “reach around $339,000.”

“In the less likely scenario that the extended 2017 cycle repeats with similar diminishing returns, Bitcoin could peak around $290,000 by early 2026,” they said.

US Bitcoin reserve may change the narrative

Meanwhile, the possibility of the incoming Trump administration creating a strategic Bitcoin reserve in the United States has the crypto industry speculating that the market narrative could move into uncharted territory.

Related: Bitcoin tumbles will be ‘less abrupt’ after realized profit drops 76%

“If one country implements a Bitcoin strategic reserve, you can kiss goodbye to your 4-year cycles,” crypto analyst Tyler Durden said in a Dec. 17 X post .

After Donald Trump won the election on Nov. 5, pro-crypto Senator Cynthia Lummis said she would move forward with legislation for the US government to buy Bitcoin and hold it for at least 20 years.

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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.