Analysts who predicted Bitcoin's 2023 rally are out with their forecast for 2024 and 2025

investing.com:

The recent surge in Bitcoin (BTC) prices has prompted a revision of projections for 2024.

Analysts at Compass Point Research and Trading attributed the price surge to factors like a tighter BTC coin supply, increased enthusiasm for spot BTC ETF approvals, and expectations of interest rate cuts in 2024.

Analysts were looking for Bitcoin to end 2023 at about $36,500 while the world’s largest digital coin closed at above $42,000.

Looking forward to this year, analysts see Bitcoin prices averaging $64,400 and ending the year at $85,000. This compares to their previous forecast for $50,900 and $75,000, respectively.

“While our outlook for spot BTC ETF approvals in early January has remained our base case for several months now, the run up in BTC prices ahead of the event have outpaced our expectations due to even tighter coin supply than we initially expected,” analysts wrote.

They also added that “long-term, large-scale holders continued to accumulate coins without selling, which we believe will persist for the foreseeable future given how long-term holders have acted during prior bull cycles and could potentially intensify after the ETF catalyst materializes.”

Another factor that is supporting prices is the improved visibility into interest rate cuts, “which we expect to buoy all risk assets, but BTC in particular.”

“Furthermore, BTC prices tend to rise into halving events, so we expect at least some tailwinds ahead of the 2024 halving in April. We believe the set up for 2024 is particularly bullish given these dynamics and believe there could even be upside to our outlook, especially if ETF adoption is stronger than expected,” analysts also noted.

As far as 2025 is concerned, Compass Point Research and Trading sees