Bitcoin to $250K? CoinShares Head of Research Explains Why It’s Possible

• CoinShares’ James Butterfill is confident Bitcoin price and valuation could capture 25% of gold’s capitalization.
• The digital currency might see a major reversal, but Bitcoin ETF will provide the needed cushion.

James Butterfill, Head of Research at digital asset management CoinShares, made a bold prediction about Bitcoin (BTC). In a recent CNBC interview, Butterfill explained why the leading cryptocurrency could hit the $250,000 mark in the long term.

Butterfill’s Bitcoin Price Projection

At Bitcoin’s current price, a rally toward $250,000 means an increase of 166%. Also, Bitcoin’s market capitalization would represent roughly 25% of the market share of gold, up from the current 10%. 

While Butterfill expressed optimism, he said he does not expect Bitcoin to hit $250,000 this year. 

“Timing of this is very difficult though, and I don’t expect this to occur in 2025, but it will head in that direction,” says Butterfill.

Nonetheless, he believes Bitcoin could correct to $80,000 in 2025 and peak at $150,000. He explained that Bitcoin’s $80,000 might stem from the unfulfillment of Donald Trump’s pro-crypto policies.

For context, Bitcoin hit the $100,000 milestone in December following Trump’s Presidential win. The rally follows expectations that Donald Trump would enact favorable crypto policies upon resuming office in January.

Thus, Butterfill explained that disappointment about Trump’s proposed crypto policies and uncertainty about execution could spark a large market correction. On the brighter side, he thinks a favorable US regulatory environment will spark over a 60% increase for Bitcoin this year.

In 2023, he estimated Bitcoin price to hit $80,000 in 2024. Bitcoin hit this target, rallying to an all-time high of $108,239 before dropping to current levels. At press time, BTC is trading at $96,240, up 3.6% in the last 24 hours, with a market cap of $1.9 trillion.

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Meanwhile, CoinShares is just one of several market participants that have predicted a bullish outlook for Bitcoin in 2025. In an earlier CNF update, popular crypto analyst Michaël van de Poppe predicted that Bitcoin will hit $150,000 this year. The analyst cited macroeconomic factors as catalysts to Bitcoin’s rise.

The Role of Bitcoin ETFs

Notably, the introduction of spot Bitcoin Exchange-Traded Funds (ETFs) has shaped the trajectory of the coin’s price. According to a CNF report, there is a rise in Bitcoin bond ETF filings, signaling potential shifts in market dynamics.

These filings demonstrate a rising institutional interest in the leading cryptocurrency. It also signals increasing confidence in Bitcoin’s potential as a viable asset class.

The approval of these ETFs can result in increased liquidity and lower volatility as they draw more players to the market. These ETFs offer investors exposure to Bitcoin without the need to directly purchase or store it. 

As a result, they become an attractive option for those wary of the complexities and risks associated with direct crypto investments. Galaxy Research even predicted a major asset manager might allocate up to 2% of its managed funds to Bitcoin ETFs this year.