Alex Thorn, head of firmwide research at Galaxy Digital, has predicted that Bitcoin will eventually hit $250,000 by the end of 2027.
At the same time, the prominent researcher has admitted that it would be too challenging to predict the flagship cryptocurrency's price action in 2026.
In fact, as noted by Thorn, there are currently equal odds of Bitcoin hitting $50,000 and $250,000 by the end of the next year, according to options markets.
"These wide ranges reflect uncertainty about the near term. At the time of writing, broader crypto is already deep in a bear market, and bitcoin has failed to firmly re-establish its bullish momentum," Thorn said in his social media post.
Apart from the hazy macro picture, the upcoming US midterm elections will also sow uncertainty.
A maturing asset
The analyst has also noted that Bitcoin is transitioning from a speculative to a mature financial asset. "Over the course of the year, we have seen a structural decrease in the level of longer-term BTC volatility," he said.
Six months ago, calls were more expensive than Puts. Traders were so desperate to catch a massive rally ("FOMO") that they paid a premium for upside calls.
Now, however, puts are more expensive than calls, which is normal for traditional assets. Traders are now more worried about protecting their wealth from a crash than they are excited about a rally.
Bitcoin is now moving from "a skew normally seen in developing, growth-y markets" to the one seen in more traditional macro assets, Thorn notes.
The analyst claims that it is "very possible" that bitcoin follows gold to become widely adopted as a monetary debasement hedge within the next two years.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team