Bitcoin (BTC -1.98%) continues to prove its skeptics wrong. As of this writing on the afternoon of Feb. 7, it trades at $97,300 per coin. That figure is up 130% in one year and 906% over the past five.

The bulls are setting their sights on the next milestone to be achieved in a short period of time. A notable 68% of cryptocurrency investors think Bitcoin will hit $200,000 in 2025. While that certainly seems like a very optimistic scenario in less than 11 months’ time, here’s why those believers could be right.

Past catalysts

The trajectory Bitcoin is on is quite impressive. It all started in early January 2024 with the approval of spot Bitcoin ETFs. These provided a regulatory-compliant way for anyone to gain exposure to Bitcoin’s price in a convenient way. They have seen massive amounts of capital inflows.

What’s more, in April of last year, Bitcoin’s network underwent another halving. This cut in half the amount of new Bitcoin that miners receive when approving transactions to the blockchain. This critical event not only enforces the crypto’s predetermined inflation rate, but it has typically preceded a bullish march forward for Bitcoin’s price. We have been experiencing this firsthand in the past year.

Bitcoin is legitimate

Bitcoin’s next catalyst, in my opinion, rests squarely on its being viewed more as a legitimate financial asset in the minds of powerful people. This means politicians in Washington and financiers on Wall Street will no longer brush Bitcoin to the side.

To be clear, we have already started to see this play out during the presidential campaign trail, with Donald Trump publicly voicing his support for Bitcoin.

Perhaps the most notable thing he said was that he wants the U.S. to build a Bitcoin strategic reserve. Details on how exactly this would be implemented are scarce. However, it’s an obvious sign that this top digital asset is now being taken seriously as a potential tool to fix the government’s fiscal situation.

There are 15 states that have shown an interest in adding Bitcoin to their own balance sheets. Banks might soon start to custody Bitcoin.

Also, there was a recent accounting rule change that makes corporations report their Bitcoin holdings at fair value on their balance sheets. Based on Bitcoin’s historical rise, this can provide an impactful earnings bump to companies that can impress their shareholders.

If the U.S. somehow gets a Bitcoin strategic reserve off the ground, just imagine how many countries across the world will follow in our footsteps. And if individual states and more companies start doing the same thing, it could open up the floodgates. No one will want to get left behind.

That could add tremendous buying pressure to Bitcoin. Because its total supply can’t be altered to meet surging interest, we can safely assume the price will skyrocket.

Making accurate forecasts is hard

Bitcoin’s rise over the past decade and a half is truly remarkable. To see its price increase about 100% to $200,000 over the course of this year, which would be a fantastic gain for any other asset class, would actually not be out of the ordinary for the world’s oldest and most valuable crypto.

However, investors must realize that making predictions, while a fun exercise, is impossible to do accurately on a consistent basis. There are many unknown variables at play that can impact Bitcoin’s price in 2025, like macro factors, regulatory developments, or changing investor sentiment.

Therefore, the best thing investors can do is to decide if Bitcoin is an asset they want to own for the long haul. If you’re willing to own it for five or 10 years, then perhaps it’s time to add the digital asset to your portfolio.