Crypto trader Alex Becker predicts a surge to $250,000 or even $400,000, supported by Bitcoin's increasing use as a global store of value. The market optimism surrounding Bitcoin is fueled by speculation about pro-crypto initiatives under Donald Trump’s incoming administration and Bitcoin’s dominance in the crypto space. Additionally, Coinbase's relaunch of Bitcoin-backed loans also signals rising demand for crypto lending, which is projected to grow significantly in the coming years.
BTC’s $150K Target Comes Into Question
Bitcoin is poised for impressive price gains, with some analysts and traders even suggesting that previous cycle targets of $150,000 are now overly conservative. Crypto trader Alex Becker recently described the $150,000 projection as “silly low,” and argued that the asset’s increasing adoption by nations, corporations, and funds makes higher price levels inevitable. In a Jan. 16 post on X, Becker predicted that Bitcoin could surge to $250,000 or even $400,000.
At its current price of around $101,742, a rise to $150,000 will require a 48% increase and a 38% gain from its all-time high of $108,249. Becker pointed out that such a valuation will give Bitcoin a market capitalization equivalent to about one-sixth of gold’s, which he believes is still undervalued considering the growing role Bitcoin could play as a global store of value. Bitcoin’s current market cap stands at $1.97 trillion, still dwarfed by gold’s $18.4 trillion market cap.
Crypto analyst Will Clemente also believes that national adoption of Bitcoin as a strategic reserve asset could lead to exponential price increases. Clemente argued that once one nation adopts Bitcoin, others will follow, driving prices upward. He believes Bitcoin reaching $1 million is only a matter of time under these conditions.
Various firms weighed in with their price targets. Blockware Solutions predicts a $150,000 bear case for Bitcoin if former President Donald Trump does not implement plans for a Bitcoin Strategic Reserve. Its base and optimistic targets are $225,000 and $400,000, respectively.
VanEck projects that Bitcoin will hit $180,000 by the end of 2025, and Bitfinex analysts suggest it could reach $200,000 by mid-2025. Becker pointed out that while the $150,000 target made sense in earlier cycles when institutional adoption was limited, it no longer holds up in the current environment of heightened recognition and usage.
The anticipation surrounding Bitcoin is heightened as Donald Trump’s inauguration approaches on Jan. 20. Speculation is mounting that Trump may prioritize crypto-related initiatives early in his presidency. Reports also suggest he could address crypto de-banking issues and reverse policies requiring banks to treat digital assets as liabilities. This added momentum to market optimism.
Some traders, like Mister Crypto, noticed that Bitcoin’s current price trajectory mirrors patterns seen during previous inaugurations, which could suggest a move toward $150,000.
Bitcoin’s Dominance Set to Continue Through 2025
Bitcoin's dominance in the crypto market is also projected to persist through 2025, according to a report from JPMorgan analysts led by managing director Nikolaos Panigirtzoglou. Bitcoin currently holds a market dominance of approximately 55% as it trades near $100,000,.
One primary factor behind Bitcoin's dominance is its appeal as a digital hedge against currency debasement, similar to gold. This narrative attracted very large inflows into spot Bitcoin ETFs from both retail and institutional investors, contrasting with the limited $2.4 billion inflows into spot Ether ETFs. This disparity suggests that there is muted interest in altcoin ETFs, including those centered on tokens like Solana. Additionally, MicroStrategy's ongoing $42 billion Bitcoin acquisition plan is seen as a key driver of demand, especially as the company is only halfway through its buying strategy.
The report also points out the potential for US states, governments, and central banks to accumulate Bitcoin as a reserve asset, which could further boost its market dominance. Advances in Bitcoin's Layer 2 networks, which enable smart contract functionality, are also increasingly positioning Bitcoin as a competitor to Ethereum in this space.
Additionally, institutional adoption trends are shifting, with private and consortium blockchains gaining favor for applications like digital bond trading and transaction settlements. These solutions offer greater privacy and customization, which reduces reliance on public blockchains like Ethereum.
Emerging infrastructure-focused projects, like Coinbase-incubated Base, which has gained a lot of traction without launching a token, proves that there is a broader industry trend away from token-centric strategies. This shift could divert value from crypto tokens to private corporations, according to the analysts.
The report also shared that decentralized platforms, while initially successful, often face declines in user activity and token value as hype wanes. Platforms like Friend.tech, Farcaster, and Lens have struggled to maintain adoption. This signals that there is a need for more time to demonstrate lasting utility. Although regulatory clarity in the US could eventually boost the appeal of alternative tokens, the analysts warned that such policies may take time to actually materialize.
In the meantime, the cryptocurrency market is still in a consolidation phase, heavily influenced by movements in the tech sector of equity markets. While clearer regulations could improve sentiment, the report suggests Bitcoin’s dominance is likely to remain unchallenged for the foreseeable future.
Coinbase Relaunches Bitcoin-Backed Loans in the US
Another factor that could give Bitcoin a nice boost is the fact that Coinbase reintroduced Bitcoin-backed loans in the United States, which allows eligible users to borrow up to $100,000 in USD Coin (USDC) using their Bitcoin holdings as collateral. This new offering is available to US account holders, excluding those in New York, and requires the collateral to be held on Coinbase. The loans are facilitated by Morpho Labs through Base, Coinbase’s Ethereum layer-2 network.
Max Branzburg, a Coinbase executive, shared that the product is part of the exchange’s mission to promote economic freedom, and allows users to leverage their Bitcoin holdings without needing to sell them. Coinbase clarified that it acts as a facilitator rather than a direct lender, allowing users to access competitive interest rates without fees or credit checks. Borrowers also benefit from flexible repayment terms, with no set timeline for repayment.
This is Coinbase’s second attempt in the Bitcoin lending market after shutting down its Borrow program in November of 2023. The demand for Bitcoin-backed loans is growing as these loans allow holders to access capital while still retaining their assets and avoiding taxable events.
The Bitcoin-backed loan market is expected to expand a lot. In fact, its value is projected to grow from $8.5 billion in 2024 to $45 billion by 2030, according to HFT Market Intelligence. Increased adoption of Bitcoin and growing interest from financial institutions also proves that there is growing potential in crypto lending. Companies like Ledn report that institutions are moving beyond exchange-traded funds into the crypto lending space.
