Key Points
- Bernstein analysts have revised their Bitcoin (BTC) price target for 2025 from $150K to $200K.
- Jurrien Timmer, director of global macro at Fidelity, suggests slow network growth could derail short-term rally.
Bitcoin, also known as BTC, has faced challenges in surpassing its mid-March record high of $73.7K. Jurrien Timmer, director of global macro at Fidelity, has attributed this to a slowdown in the cryptocurrency’s network.
Slow Network Growth
Timmer’s analysis, posted on X (formerly Twitter), indicated a recent slowdown in the growth of Bitcoin’s network. He suggested that this divergence between price and adoption could be a factor in Bitcoin’s slowed progress towards new all-time highs.
Data analysis supports this assertion, showing a decline in network activity following a peak of 1.1 million active addresses in early March. As of the time of writing, the number of active addresses has dropped to 620K.
Impact on BTC Price
Timmer further underscored the significance of network growth to BTC price by referencing non-zero BTC addresses. He noted a correlation between surges in network growth and increases in non-zero BTC addresses.
Despite an increase in non-zero BTC addresses, Timmer suggested that the overall decrease in network activity could be hindering a potential BTC rally.
BTC’s Future Prospects
Meanwhile, analysts at Bernstein have adjusted their BTC price target for 2025, increasing it from $150K to $200K. They attribute this adjustment to expected ETF demand and a BTC supply shock.
The analysts predict that the ETF’s AUM (asset under management) will rise from the current $60 billion to $190 billion by 2025, potentially driving BTC to rally 2.8X from its current level to $200K by next year.
