Despite a recent pullback, Bitcoin (BTC/USD) has experienced a significant rise of 21% in 2025, currently trading around $113,150 as of Tuesday. James Cakmak, the chief investment officer at Clockwise Capital, suggests that this rally might only be the beginning. During a recent interview with CNBC, Cakmak stated, “Crypto, Bitcoin specifically, continues to be the most underappreciated asset in the market, and likely to be the best performing asset class in 2025. And thereafter.”
This assertion stands out, especially given Bitcoin’s impressive 121% gain in 2024, solidifying its status as one of the top-performing assets over the past two years. Cakmak’s optimistic viewpoint aligns with some of the banking industry’s forecasts. Standard Chartered Bank anticipates that Bitcoin could reach $135,000 by the end of the third quarter and soar to $200,000 by the close of the year. Similarly, Citibank’s projections include a base-case scenario predicting Bitcoin will hit $135,000 by December, while a more bullish outlook suggests it could approach $199,000.
Bitcoin has seen a recent decline of approximately 9% from its all-time high of over $124,500, which was achieved in August. However, analysts attribute the current optimism surrounding Bitcoin to several key factors. Notably, there is a growing trend of institutional adoption alongside increasing demand from retail investors looking for alternatives to conventional assets.
Amid ongoing inflation concerns and escalating geopolitical tensions, Bitcoin is increasingly being perceived as a hedge against not only the risks associated with fiat currencies but also systemic economic uncertainties. Cakmak’s assertion that the cryptocurrency remains “underappreciated” reflects a broader sentiment among enthusiasts in the crypto space: despite its considerable gains, Bitcoin is still seen as undervalued based on its potential.
If these predictions materialize, Bitcoin might outperform traditional asset classes such as equities, bonds, and commodities in 2025, reinforcing its position as a fundamental component of diversified investment portfolios. Regardless of whether Bitcoin reaches the $135,000 or $200,000 mark, it has undeniably regained substantial attention in the financial landscape. For investors like Cakmak, this moment is about more than mere trading; it represents a deep-seated conviction in Bitcoin’s future.
