Bitcoin (BTC) could soar to $200,000 by the end of 2025, with its “fair value” potentially reaching $230,000, according to analysts at Bitwise Asset Management. The bullish forecast comes amid mounting U.S. fiscal concerns, growing institutional demand, and the rapid adoption of Bitcoin ETFs.
In a recent note, Bitwise researchers André Dragosch and Ayush Tripathi pointed to structural imbalances in the Bitcoin market. While the network produces just 165,000 new BTC annually, demand from ETFs, corporations, and even governments is “exhausting the available supply.”
“Bitcoin’s scarcity and resilience position it uniquely to benefit from both fiscal instability and improving market sentiment,” the analysts wrote, citing inflation risks and the expanding U.S. deficit as long-term catalysts.
Adding to the optimism, technical indicators like the Optimized Trend Tracker (OTT) have flipped bullish for the first time since mid-2024. Market watchers say this could pave the way for a breakout to $200,000, or even higher if macro conditions align.
GameStop Buys Bitcoin, Bitwise Launches New Covered Call ETF
Bitwise this week also launched a GameStop-focused covered call ETF (ticker: $GMEY), designed to generate income from the video game retailer’s extreme volatility. The move follows GameStop’s recent pivot into crypto, including the purchase of nearly 5,000 Bitcoin in late May, adding the company to the growing list of public firms with BTC on their balance sheets.
Covered call ETFs aim to capitalize on price swings by selling options on volatile assets like GameStop while still holding the underlying stock. Bitwise CIO Matt Hougan said the strategy builds on the firm’s previous success with similar products tied to MicroStrategy and Coinbase.
“One of the things about GameStop, and one of the things about crypto that we know more than anything else, is that they’re volatile,” Hougan said. “The beauty of covered call strategies is that they translate that volatility into income.”
79 Public Companies Now Hold Bitcoin, Up 160% Year-Over-Year
According to Bitwise, 79 public companies now collectively hold over $57 billion in Bitcoin as of March 31, 2025, a 160% increase year-over-year. Hougan attributes this rise to concerns about the U.S. dollar, rising inflation, and deteriorating confidence in traditional monetary policy.
“Corporations globally are sitting on record amounts of cash, and what they’ve historically done is park it in short-term U.S. Treasuries,” Hougan said. “That no longer seems like a valid approach. They need another way to protect their wealth from degradation, and they’re turning to Bitcoin.”
GENIUS Act Stablecoin Bill Seen as “Most Important” Crypto Law Yet
On the regulatory front, the Senate recently advanced the bipartisan GENIUS Act: a stablecoin bill that could mark a turning point for crypto legislation in the U.S. Hougan called it “the most important regulatory development in the history of crypto,” even more significant than the approval of spot Bitcoin ETFs in January 2024.
“For crypto to really reshape how the world’s global finance works… we need to rest on a strong foundation,” he said. “Right now, crypto regulation in the U.S. rests on executive orders and legal interpretations. There are no laws that protect it for the long term.”
The bill’s passage is seen as crucial not only for crypto legitimacy but also for U.S. Treasury demand. Stablecoins have become major buyers of U.S. government debt, and Hougan believes political necessity will help push the bill through Congress this year.
Bitcoin Portfolio Allocation Doesn’t Increase Risk, Says Bitwise
Addressing portfolio risk concerns, Bitwise recently published a study comparing traditional portfolios with those that included 5% to 10% Bitcoin exposure. The results showed that while Bitcoin is highly volatile on its own, small allocations actually improved risk-adjusted returns without significantly raising overall portfolio risk.
“The old days of having 60% stocks and 40% bonds are over,” Hougan said. “I think people need to move to a new kind of portfolio that looks at stocks, cash, and crypto, and modulates the risk between them.”
Bitwise currently offers spot Bitcoin and Ether ETFs and has pending filings for spot Solana, Dogecoin, and XRP ETFs with the SEC. While decisions on these products are still pending, Hougan remains optimistic that broader crypto ETF approvals are on the horizon.
“If we’re reading the tea leaves, we’re very optimistic on many of these alternative assets,” he said. “Not every crypto asset needs an ETP, but investors want and should get exposure to more than just Bitcoin and ETH.”
Also Read: Michael Saylor Says Bitcoin Is Going to $1 Million, Not Zero
