Investment firm Bitwise forecasts Bitcoin could reach $200,000 by year-end, citing concerns over rising US government debt and surging institutional adoption as key catalysts. Analysts position Bitcoin as a growing hedge against sovereign financial risk.
Concerns over US fiscal policy are fueling positive sentiment. Proposals like the ‘One Big Beautiful Bill Act,’ which includes significant tax cuts, could substantially widen the federal budget deficit. This prospect enhances Bitcoin’s attractiveness as a non-sovereign store of value for investors seeking protection against currency devaluation.
Bitcoin recently demonstrated resilience following a significant market dip, rapidly rebounding from lows around $100,000 despite ongoing geopolitical uncertainties. This recovery highlights robust underlying demand.
Technical indicators support a bullish outlook. Models incorporating tools like the Optimized Trend Tracker (OTT) signal a potential breakout, with some analyses projecting even higher targets near $250,000.
The demand-supply imbalance remains a critical bullish factor. Increasing institutional participation combined with Bitcoin’s algorithmically fixed supply cap of 21 million coins is expected to create sustained upward pressure on the price as available supply diminishes relative to demand.