Peter Brandt, a technical analyst, now thinks Bitcoin is on its way to $200,000, citing a recent breakout above $57,000. The sharp swing to spot rates comes behind growing institutional adoption.
Bitcoin Breaks Out, Path To $200,000?
The analyst, posting on X, noted that BTC prices are now trading above the 15-month channel resistance. Earlier today, Bitcoin broke above the upper trend line of the ascending channel.
Accordingly, Brandt now thinks this breakout, especially considering what has been happening with the rate of Bitcoin absorption among institutions, would propel the coin higher.
With this background, the analyst revised Bitcoin’s target from $120,000 to $250,000. Brandt added that this uptrend will end by August/September 2025.
Overall, traders are bullish on the coin, expecting higher prices to float. At spot rates, BTC, after breaking out from the 15-month ascending channel, is trading at 2024 highs. Traders expect more gains towards 2021 highs of around $70,000, citing institutional adoption.
Since mid-January, billions have flowed to institutions following the approval of spot Bitcoin exchange-traded funds (ETFs) by the United States Securities and Exchange Commission (SEC). Of note, the amount of coins purchased has, in some instances, exceeded those mined. Accordingly, this actively creates an imbalance, a demand-side event that would support prices even more.
Spot BTC ETFs Ushered A New Era Of Price Discovery
It is this development that Matt Hougan, Chief Investment Officer (CIO) of Bitwise Asset Management, notes in a letter to investors that will propel prices even higher. In the note shared by CEO Hunter Horsley, Hougan argued that Bitcoin has now entered a “new era of price discovery,” mostly propped by big money institutions in the United States.
Specifically, the CIO attributes this surge in demand to spot Bitcoin ETFs. It is a derivative product that has allowed a broad range of investors to access the coin easily. Hougan compares the recent sequence of events to “100 very wealthy people bidding on a house”. This is a drastic shift compared to the previous limited group of investors, mostly retailers before the United States SEC green-lit the product.
For what’s going on, Hougan expects more gains. In the CIO’s preview, if family offices and institutions allocated even 1% of their assets under management, the amount would translate to over $1 trillion. This figure almost equals the current Bitcoin market cap and would profoundly affect prices.
Feature image from Canva, chart from TradingView
