Analysts Predict Bitcoin Price Rally to Continue Throughout 2025: Here’s Why

Highlights:

• Bitcoin’s price rally may last until 2025, driven by institutional and ETF flows.
• Analysts predict Bitcoin will hit $110K by January and $200K in 2025.
• Market optimism and rising profits fuel Bitcoin’s “euphoria stage” despite liquidity issues.

Bitcoin made history on December 5 by crossing the $100K mark for the first time ever. This milestone came after a remarkable 32% surge over the past month, even as traditional assets such as oil, gold, and the S&P 500 struggled to maintain stability. Some experts anticipated that BTC’s price could double within a year.

Bitcoin Price Enters Euphoria Stage, Predicts Rally Until End of Next Year

Co-founder of WeRate, Quinten François, shared his insights on the rally on X. He called this moment the start of Bitcoin’s “euphoria stage.” François stated that this could extend Bitcoin’s price rally until the end of next year.

The “euphoria stage” is characterized by heightened excitement and optimism that drive crypto prices higher. François based his forecast on the Net Unrealized Profit/Loss (NUPL) metric. This shows if more Bitcoin holders are making a profit or facing losses. A high NUPL shows many BTC holders are in profit, which usually pushes prices up.

$BTC is entering the euphoria stage

You have maximum 12 months before the cycle top pic.twitter.com/984OYpbaRH

— Quinten | 048.eth (@QuintenFrancois) December 7, 2024

Liquidity, or the amount of money in the economy, is decreasing globally, making growth harder for other markets. Still, Bitcoin is performing well. Jamie Coutts, chief crypto analyst at Real Vision, said, “Bitcoin has hit new ATHs in the face of a deteriorating liquidity backdrop.” He warned that if conditions worsen, the rally may not last long. However, if conditions improve, prices could rise further.

Bitcoin price peaked at $104k on Thursday before dropping to $93,000. By Friday afternoon, it recovered to $102,000 after rebounding from the sudden crash. As of now, Bitcoin remains above the $99K mark.

BTC Could Reach $200K in 2025, Says Analyst

In a Thursday note, Standard Chartered’s Global Head of Digital Assets Research Geoff Kendrick wrote Bitcoin rally is driven by institutional flows into spot ETFs. MicroStrategy, with its laser-eyed focus, is also buying Bitcoin faster than expected.

Kendrick expects institutional flows to continue in 2025, maintaining or exceeding 2024 levels. He noted that regulatory changes under President-elect Donald Trump could further boost flows. Against this backdrop, Kendrick believes a Bitcoin price of $200k by the end of 2025 is achievable.

Bitcoin will double to $200,000 by the end of 2025, says Standard Chartered https://t.co/5DexVxIoWJ

— CNBC (@CNBC) December 5, 2024

Bitcoin Could Hit $110K by January, Says Raoul Pal

Raoul Pal, CEO of Global Macro Investor, predicts more records for Bitcoin. He believes Bitcoin price could reach a “local top” of $110,000 by January next year, citing the connection between Bitcoin’s growth and global money supply (M2 liquidity). Simply put, if liquidity continues to improve, Bitcoin’s price could keep rising.

A strategist at 21Shares, Matt Mena, called $100k a key milestone for BTC. He said this breakthrough could attract new investors who were previously hesitant. Furthermore, Brent Kenwell, an investment analyst at eToro, suggested some Bitcoin investors might take profits as it crosses $100,000. He noted that BTC is up over 40% since the election. In a statement on Thursday, he said a pause in Bitcoin’s price rally would not be surprising.