After the past few weeks and months on the crypto market resembled a roller coaster ride – the unpleasant kind at that – subtle silver linings are now appearing on the bull run horizon. Today, Bitcoin broke the $100,000 mark for the first time, after successfully defending the $90,000 mark since mid-April. Number two Ethereum also enjoyed a strong price increase, surpassing the $2,000 mark. The total market capitalization also increased significantly by 6.45 percent.
How high will Bitcoin rise in 2025?
An exact price forecast for how high Bitcoin will rise in 2025 is not possible at this point, nor is a prediction as to whether the major crypto rally will begin now or not. The crypto market is simply too volatile for that, as January 2025 demonstrated. After the new US President took office, BTC initially shot to an all-time high of $109,000, and analysts were literally tripping over themselves with positive forecasts. However, the price plummeted again due to the trade war that the US President had sparked with his punitive tariffs.
With the new price breakout, however, the old all-time high of $109,000 seems to be within reach again, and who knows, perhaps Arthur Hayes’ prediction that Bitcoin will reach $150,000 by the end of the month could prove correct. Perhaps Scott Melker’s prediction, who sees a summer crash to $49,000, is also correct. Whether an investment in Bitcoin or a cryptocurrency is worthwhile is something each trader or investor must decide for themselves. The high volatility requires considerable nerve and resilience.
Why is Bitcoin rising?
The explosive rise in the price of Bitcoin is likely due to several factors. First, the Fed’s decision to keep the key interest rate in a range of 4.25 percent to 4.5 percent, despite pressure from the incumbent US president. The Fed chairman cited the threat of stagflation due to punitive tariffs as the reason. This, in turn, benefits Bitcoin, which is considered digital gold and a store of value. However, there are also market observers who continue to expect the Fed to cut interest rates by the end of the year. Highly volatile assets, including Bitcoin, could benefit from this. Furthermore, possible solutions to tariff disputes are emerging, which is improving market sentiment. The Fear and Greed Index is back at 53. While this is still “neutral,” it is significantly closer to “greed” than “fear.”
Bitcoin Reserves and ETF Inflows
Institutional investors’ interest in Bitcoin is also on the rise again. At the beginning of the week, $425 million flowed into the Bitcoin Spot ETF. Since its launch in January 2024, the Spot ETF has become a best-seller and now has a total market capitalization of billions of dollars. Last but not least, several US states are following suit with regard to Bitcoin reserves. Following New Hampshire, Arizona Governor Katie Hobbs has now signed House Bill 2749, which allows for the establishment of a Bitcoin or crypto reserve. Other US states could follow suit, including Texas and North Carolina.
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