After purchasing a $97K dip, KULR Technology projects a $200K Bitcoin price.

However, Michael Mo, the CEO of KULR Technology, believes that Bitcoin's worth might double from its current valuation due to its increasing global usage.

According to Mo, this may position Bitcoin for a 2025 cycle peak of above $200,000.

The adoption of a strategic Bitcoin reserve by states and countries is the largest motivator. The United States, Germany, Switzerland, and other nations are presently investigating it," he stated.

KULR launched its Bitcoin treasury in December when it paid about $21 million for 217.18 BTC. According to KULR, the purchase is the first of several planned purchases as part of a larger plan to invest up to 90% of its excess funds in Bitcoin.

The US Bitcoin Act, supported by Senator Cynthia Lummis of Wyoming, suggests setting up a strategic Bitcoin reserve for the biggest economy in the world.

According to Adam Back, co-founder and CEO of Blockstream, the creator of Hashcash and one of the most prominent cryptographers in the business, Bitcoin would someday cost more than $1 million if US politicians approve the Bitcoin Act.

To reach the $200,000 milestone, Bitcoin's market capitalization would need to draw in an additional $2 trillion in capital, surpassing Apple's $3.7 trillion market capitalization and making it the second-largest asset in the world.

See also: Metaverse token trader converts $2K into $3.2M in 10 hours

Binance Research predicts that Fed policy and cryptocurrency legislation would influence the price of bitcoin in 2025.

Bitcoin's surge to its all-time high of $108,300 was mostly driven by expectations of better monetary policy and crypto regulations.

According to a Jan. 6 study by Binance, the Federal Reserve's intention to implement fewer interest rate reductions in 2025 was probably the reason behind Bitcoin's decline below $100,000. It stated:

"Despite a modest 0.25% cut during the month, the Federal Reserve's reduction of its planned 2025 rate cuts from four to two in late December caused a sharp market correction that erased over US$0.5TB from the cryptocurrency market capitalization, and the rally faltered."

According to the most recent projections from CME Group's FedWatch Tool, the probability of keeping the present rate at 90.9% is higher than the odds of a 0.25% interest rate drop, which are 9.1%.

Related: Record Binance stablecoin reserves help Bitcoin reach $120,000 in January.

Although Bitcoin was able to bounce back above $100,000, Binance Research informed Cointelegraph that maintaining the current surge will be heavily reliant on the changing crypto regulations:

"A number of factors, such as the actual implementation of crypto regulations and the Federal Reserve's policy path in 2025, will determine whether these levels can be sustained over the long term."

In the meantime, there are already indications that institutions are adopting Bitcoin more widely in the new year. 

As reported by Cointelegraph on January 7, Aleš Michl, the governor of the Czech National Bank, reportedly contemplated using Bitcoin as part of a strategy to diversify the nation's foreign exchange reserves.

The above content is based on the article by William Suberg from Zoltan Vardai

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Recently, KULR Technology released a forecast regarding Bitcoin's price trajectory, predicting that Bitcoin could potentially reach the $200,000 mark while also suggesting the market might experience a dip to $97,000. This prediction has sparked widespread discussion, as it highlights both the potential volatility of the cryptocurrency market and the investment opportunities in the years to come.

Bitcoin's Long-Term Potential

KULR Technology's prediction that Bitcoin could reach $200,000 in the future is grounded in logical reasoning. First, as more institutional and individual investors enter the market, Bitcoin's position as "digital gold" continues to solidify. With global economic uncertainty and increasing pressure on traditional financial systems, Bitcoin and other cryptocurrencies have become an attractive hedge against inflation and a store of value.

Additionally, Bitcoin has a capped supply of 21 million coins, which gives it an inherent scarcity. As demand for Bitcoin increases, its fixed supply could drive its price upward. In fact, over the past few years, Bitcoin has experienced several major price rallies and corrections. This volatility has not shaken market confidence; rather, it has reinforced Bitcoin's role as a valuable asset in many investors' portfolios.

The Possibility of a $97,000 Dip

However, KULR Technology also warns investors that, despite the optimistic long-term outlook for Bitcoin, it could experience a significant short-term correction, potentially falling to around $97,000. The volatility of the crypto market is well-known, and Bitcoin has historically gone through deep pullbacks during bullish market phases. Therefore, this prediction is not entirely surprising.

In a highly volatile market, investors may be influenced by short-term price fluctuations, potentially making rash or panicked decisions. However, KULR's forecast emphasizes the importance of maintaining a long-term perspective and not being swayed by short-term volatility. Bitcoin has gone through multiple corrections in the past, and often, after a dip, the price has continued to rise. These price fluctuations provide buying opportunities for long-term investors.

Conclusion

Overall, KULR Technology's prediction presents an optimistic long-term outlook for Bitcoin while also cautioning investors about short-term correction risks. While Bitcoin may very well break the $200,000 barrier, it still faces significant price volatility. In such a market, investors should approach their strategies with caution, remain level-headed, and manage risks effectively. As history has shown, Bitcoin's price fluctuations and market uncertainties have not diminished its long-term growth potential, but they do require investors to have patience and foresight.