Bitcoin is on the brink of a massive rally, with institutional analysts predicting a $175,000 target due to surging demand, expanding money supply, and booming wallet adoption, all supported by favorable regulatory reforms in the US and exploding blockchain use cases.
Analysts predict Bitcoin will reach $175,000 due to rapid growth driven by three factors
Institutional confidence in digital assets is growing as analysts predict renewed momentum in Bitcoin and blockchain adoption. Financial services firm Siebert Financial (NASDAQ: SIEB) has released a research report predicting that Bitcoin will reach $175,000 within the next 12 months, citing macroeconomic expansion, increased adoption of digital wallets, and improved regulatory conditions. The report, written by research analyst Brian Wieten, introduces a three-factor model designed to quantify Bitcoin’s price trajectory based on currency growth, network penetration, and demand dynamics.
Mr Witen said:
We begin covering the digital asset with a $175,000 Bitcoin price target assuming a three-factor model.
This model incorporates three important variables. With global money supply increasing by 7%, Siebert said, “We expect the upward trajectory to continue over the next 12 months, benefiting the hoarding of value assets (i.e. rare and useful assets such as gold, real estate, stocks and digital assets).” The total volume of digital asset wallets grew by 25%, mainly due to the adoption of stablecoins and tokenization. Bitcoin demand will increase by 20%, but Siebert estimates the metric remains about 60% below its 2021 peak.
“Given this backdrop, we expect investment in the digital asset space to accelerate over the next 12 months,” the analyst predicted.
The report characterizes Bitcoin as the centerpiece of the digital asset ecosystem, with Wieten stating, “We would characterize Bitcoin as the ‘genesis’ digital asset and the bellwether of an industry representing approximately 60% of market capitalization.”
The analyst added: “We believe blockchain will one day power virtually the entire global financial system of 8 billion people.” He added: “There are currently approximately 700 million digital asset wallets, suggesting industry adoption is less than 10%.” Siebert concluded:
We believe that the United States is seeing widespread adoption of digital assets, particularly in the areas of tokenization and stablecoins, on the back of an improving U.S. regulatory environment. Over the next 12 months, the number of wallets in the industry is expected to reach nearly 1 billion.
FAQ 🧭
- What is the basis of Mr. Siebert’s $175,000 Bitcoin price prediction?
This forecast is based on a three-factor model that measures money supply growth, wallet adoption, and acceleration in Bitcoin demand. - How much is Bitcoin demand expected to increase?
Sievert predicts that Bitcoin demand will increase by 20% over the next year, but it is still below 2021 levels. - What role does wallet adoption play in this prediction?
The company expects digital wallet growth to increase by 25%, primarily due to the adoption of stablecoins and tokenization. - How will regulations affect the outlook for sieverts?
Siebert believes that an improved regulatory environment in the US will facilitate the adoption of tokenized assets and stablecoins.