Rick Edelman, manager of the Digital Asset Council of Financial Professionals fund, has revealed some predictions for the price of bitcoin by the summer of 2025.
He believes the price will reach $150,000 in the next two years, driven by continued technological growth and the likely approval of a spot ETF by the SEC.
At the moment, however, the price of bitcoin is struggling and the likelihood of a return to $20,000 in the short term is looking increasingly real.
All the details below.
Ric Edelman and his predictions for the price of bitcoin by 2025
Ric Edelman, founder of the Digital Asset Council of Financial Professionals, said in a recent interview with Coindesk that his predictions for the future price of bitcoin are very bullish.
Specifically, according to the manager of the $300 billion fund, the leading cryptocurrency will reach a price of $150,000 by the summer of 2025.
There are many reasons for his optimism.
Firstly, Ric Edelman notes that following the SEC’s stepped up legal action in June this year, we are going through a period of change, with the crypto market getting rid of the “bad boys” and becoming a cleaner industry.
In addition, the continued technological growth of the protocol is driving adoption to new horizons, with more institutional players interested in cryptocurrency and more asset management funds, venture funds and pension funds attracted by its potential.
In particular, the entry into the crypto sector of BlackRock, Fidelity, VanEck, Wisdom Tree and Invesco with their various applications for a spot ETF and Invesco has reinforced the bullish forecasts of most digital asset analysts, who now see a rise in the price of bitcoin as increasingly likely.
Indeed, the approval of a spot ETF would lead to a significant increase in volume in the regulated markets, as many fund managers would be forced to buy the underlying in the market in order to offer it to their clients, significantly reducing the supply in circulation.
Speaking of supply, Eric Edelman also mentioned the halving factor in his explanation of the bullish forecast for bitcoin, explaining that the expected halving of the miners’ premium in April 2024 could trigger a bull run in the price of digital gold.
At least, this is what has happened in recent years, with bulls always coming out on top after the previous three halving of the cryptocurrency, which occurred in 2012, 2016 and 2020.
For example, if we take the price of bitcoin in October 2019 (7 months before the next halving) and that in July 2021 (the summer after the halving), we can see a 5x increase in its value.
Similarly, now that the next protocol update is 7 months away, we can expect a similar performance, which would take the price of the cryptocurrency directly to over $125,000 by 2025.
If we also take into account the much more positive outlook compared to the context of 2019, when cryptos were still a “bet”, we can easily agree with Erc Edelman’s prediction, which could potentially reach an even higher value than the one mentioned for 2025.
Market analysis of the value of bitcoin
Despite Eric Edelman’s extremely positive predictions for the price of bitcoin by the summer of 2025, the short-term price action looks set to mark further declines unless a catalytic event occurs in the coming weeks.
Since mid-July, the market’s most capitalised crypto has interrupted the positive phase it has been experiencing throughout 2023, with prices beginning to fall rapidly without the ability to respond to the bears.
Not even Grayscale’s victory against the SEC on 29 August, when the appeals court described the federal agency’s reaction as “arbitrary and capricious” and forced it to reconsider its offer for a spot ETF, was enough to reverse the short-term trend.
This bodes ill for the price outlook, as the asset lost 1.5% and then 5% over the next two days, wiping out all of its earlier gains.
The cryptocurrency is now hovering around $25,700, with many short positions open just above $26,000 and downward pressure looking to break through the $25,000 support.
In particular, there have been two downward attacks that ended in liquidity grabs and the formation of two spikes, one on the 22nd of August and one on the 1st of September, which has technical analysts worried. A further downward push could permanently break the key level and take bitcoin to $23,000 and then $20,000.
Only a small bullish divergence on the daily RSI, which we are currently observing, could have a positive impact on the price in the coming days, which now seems to be compromised to the downside.
Given the market outlook, it is unlikely that we’ll go below $20,000, as that figure represents the top of the 2017 bull run and there are plenty of traders ready to enter the market around that level.
In any case, in the short term, the odds are in favour of the short sellers, with prices likely to fall throughout September, which is statistically a terrible month for price action in the asset.
In fact, since the currency has been tradable on the markets, there have only been 2 occasions when its price has posted positive gains this month, compared with 8 occasions when it has posted losses.
October, on the other hand, tends to be a month of strong gains, especially in the years leading up to the half and half years.
The decline could therefore continue for a few more weeks before the bulls take over again.
