Could reach $200,000 on this month

Bitcoin is reaching new heights faster than ever. Last month, the cryptocurrency for the first time ever broke the $100,000 ceiling and traded above this threshold for the first time. At first thought to be a trend which would die out, financial experts and even governments are fast realizing the potential Bitcoin holds. 2025 may be the biggest year yet for Bitcoin, with new sights set on a $200,000 trading goal.

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Bitcoin operates similarly to gold

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Part of the allure of Bitcoin is that it shares similar characteristics to gold, a long-held respected asset. Unlike traditional fiat currencies, Bitcoin has a limited supply, with a maximum of 21 million coins. This inherent scarcity, along with increasing trust and acceptance, has contributed to its rise, enabling it to reach this six-figure milestone.

“It’s just like gold, only it’s virtual, it’s digital,” Federal Reserve Chairman Jerome Powell told the audience at the New York Times’s DealBook Summit. While gold is backed by physical properties and has established global market demand, Bitcoin operates in the digital realm and is more volatile, often subject to speculative price swings. Both assets share the characteristic of being decentralized and immune to government control, but Bitcoin’s growing adoption and its potential for high returns have positioned it as an alternative to gold, particularly for younger generations and those seeking higher-risk, high-reward investment opportunities.

Bitcoin expected to be supported in the White House

Bitcoin is also expected to see major changes this year due to the incoming second term of president-elect Donald Trump. Trump recently nominated Paul Atkins, a conservative lawyer with a crypto-friendly perspective, to replace Gary Gensler as the head of the Securities and Exchange Commission. During his previous tenure at the Securities and Exchange Commission from 2002 to 2008, Atkins advocated for policies that fostered innovation while maintaining balance. His return could bring greater regulatory clarity, potentially attracting more institutional investments into the crypto market.

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Additionally, Trump appointed billionaire venture capitalist David Sacks as his “AI and crypto czar.” A member of the “PayPal Mafia”, Sacks is a strong proponent of clear and effective regulations in both the cryptocurrency and AI sectors. Under his leadership, the U.S. could strengthen its position as a global leader in emerging technologies such as Bitcoin, blockchain, and artificial intelligence.

Additionally, Senator Cynthia Lummis of Wyoming, a strong proponent of Bitcoin, has introduced the BITCOIN Act. If enacted, the legislation would establish a U.S. strategic Bitcoin reserve. Similar to the Strategic Petroleum Reserve, which maintains a stable oil supply during emergencies, a Bitcoin reserve could function as a digital financial safeguard, providing a buffer against economic instability and uncontrolled inflation.

Bitcoin could reach $200,000 by late 2025

With numerous changes in store for Bitcoin this year, some analysts forecast that the cryptocurrency could reach $200,000 by late 2025. However, investors warns that Bitcoin is still a volatile asset and should be approached with caution and experience. Investing in the currency is most suited for experienced investors or to only make up a small percentage of your portfolio for diversified risk.