((Automated translation by Reuters, please see disclaimer https://bit.ly/rtrsauto))
*
Major US indices recover; the Nasdaq leads, up more than 1.5%
*
The technology sector leads the S&P’s gains; utilities are the weakest group
*
The Euro STOXX 600 index is up ~0.5%
*
Dollar decline; decline in gold; crude oil increase of ~1%; bitcoin rise of >3%
*
10-year US Treasury yield rises to ~4.64%
January 6 – Welcome to the home of real-time market coverage from Reuters journalists. You can share your thoughts with us at the following address
DARK RISE: BITCOIN SHOULD EXCEED $200,000 BY THE END OF 2025 – BERNSTEIN
After a meteoric rally in 2024, Bernstein predicts bitcoin BTC= will reach $200,000 by the end of 2025 as sovereign adoption of the cryptocurrency gains traction, as do supply dynamics and demand.
Bitcoin surpassed $100,000 in December, a milestone hailed even by skeptics as a coming of age for digital assets, with investors betting on a friendly US administration to cement cryptocurrencies’ place in the markets financial.
US President-elect Mr Trump, who has previously called cryptocurrencies a scam, embraced digital assets during his campaign, promising to make the country the “cryptocurrency capital of the planet” and to accumulate a national reserve of bitcoins.
“The announcement of a national bitcoin reserve by the United States would trigger a global sovereign race for bitcoin acquisition among nation states,” say Bernstein analysts, who estimate that bitcoin has gained 120% in 2024.
At the same time, Bernstein clarifies that his forecast of $200,000 does not take into account demand from governments, but only from institutions and businesses.
That said, inflows into Bitcoin ETFs will exceed $70 billion in 2025, up from $35 billion in 2024, thanks to accelerating institutional adoption, the brokerage adds.
Meanwhile, total corporate purchases of Treasury securities in 2025 are expected to exceed $50 billion, up from $24 billion in 2024, and MicroStrategy
MSTR.O, an aggressive investor in the world’s largest crypto asset, will likely drive most of this demand, according to the brokerage’s estimates.
Other predictions from Bernstein on the outlook for cryptocurrency in 2025:
*Bitcoin miners will continue to transfer their capacity to AI to create value. More action from activist investors in bitcoin miners is to be expected.
* SEC withdraws or settles lawsuits against major cryptocurrency companies and protocols. Legislation on digital asset market structure and digital asset securities is placed in both chambers. The CFTC is given more power over digital assets than the SEC.
*Stablecoins are expected to exceed $0.5 trillion in 2025.
* Expect significant activity in the cryptocurrency market and a wave of cryptocurrency IPOs.
*Banks and asset managers are launching new cryptocurrency offerings – trading, custody, active asset management products.
* Ethereum once again becomes the second most valued chain after Bitcoin, which results in a strong change in the price of ETH.
* AI enhances the functionality of cryptocurrencies, with improved automated workflows and AI-powered cryptocurrency wallets and trading operations.
(Siddharth S)
*****
FOR MONDAY’S LIVE MARKETS POSTS:
US STOCKS SOAR ON PROSPECTS OF MODERATE CUSTOMS TARIFFS – CLICK HERE
THE OVERALL MARKET HAS BEEN BEATED, BUT FLIGHTS OF HOPE ARE STARTING TO APPEAR – CLICK HERE
CHEAP UK STOCKS OUTPERFORM, DIVIDENDS AND DOMESTIC SECURITIES STAND OUT – JPM – CLICK HERE
WANT FRIES WITH THIS? – CLICK HERE
EUROPE BEFORE THE BELL: FUTURES CONTRACTS ARE UP FOR FIRST DAY OF RECOVERY – CLICK HERE
MORNING DEAL: CANADIAN DOLLAR CALMS AS TRUDEAU HEADS TO EXIT – CLICK HERE
Related News :