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- CoinShares’ James Butterfill is confident that Bitcoin’s price and valuation could capture 25% of gold’s capitalization.
- The digital currency could experience a major upheaval, but the Bitcoin ETF will provide the cushion it needs.
James Butterfill, Head of Research at CoinShares Digital Asset Management, made a bold prediction about Bitcoin (BTC). In a recent CNBC interviewButterfill explained why the leading cryptocurrency could reach the $250,000 mark in the long term.
Butterfill’s Bitcoin Price Projection
At Bitcoin’s current price, a move towards $250,000 represents a 166% increase. Also, Bitcoin’s market cap would represent roughly 25% of gold’s market share, up from the current 10%.
While Butterfill expressed optimism, he said he does not expect Bitcoin to reach $250,000 this year.
“However, the timing of this is very difficult and I don’t expect it to happen in 2025, but it will go in that direction,” says Butterfill.
Despite this, he believes Bitcoin could correct to $80,000 in 2025 and peak at $150,000. He explained that $80,000 for Bitcoin could come from the failure of Donald Trump’s pro-crypto policies.
For context, Bitcoin hit the $100,000 milestone in December following Trump’s presidential victory. The rally follows expectations that Donald Trump will adopt favorable crypto policies after taking office again in January.
Therefore, Butterfill explained that disappointment with Trump’s proposed crypto policies and uncertainty about execution could trigger a major market correction. On the bright side, he believes that the favorable regulatory environment in the US will fuel an increase of over 60% for Bitcoin this year.
In 2023, he estimated that the price of Bitcoin would reach $80,000 in 2024. Bitcoin reached this goal, climbing to an all-time high of $108,239 before falling to its current level. At press time, BTC is trading at 96,240 dollarsup 3.6% in the last 24 hours, with a market capitalization of $1.9 trillion.
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Meanwhile, CoinShares is just one of several market participants who have predicted a bullish outlook for Bitcoin in 2025. In an earlier CNF updatepopular crypto analyst Michaël van de Poppe predicted that Bitcoin will reach $150,000 this year. The analyst cited macroeconomic factors as catalysts for Bitcoin’s growth.
The Role of Bitcoin ETFs
Notably, the introduction of spot Bitcoin exchange-traded funds (ETFs) shaped the coin’s price trajectory. According to CNF reportthere is an increase in Bitcoin bond ETF filings, signaling potential changes in market dynamics.
These filings demonstrate growing institutional interest in the leading cryptocurrency. It also signals increasing confidence in Bitcoin’s potential as a viable asset class.
The approval of these ETFs can result in increased liquidity and lower volatility as they attract more players to the market. These ETFs offer investors exposure to Bitcoin without having to buy or store it directly.
As a result, they become an attractive option for those wary of the complexities and risks associated with direct crypto investments. Galaxy Research even predicted that a major asset manager could allocate up to 2% of its assets under management to Bitcoin ETFs this year.
