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According to the latest CryptoQuant weekly reportBitcoin (BTC) could target a price range between $145,000 and $249,000 in 2025. The report quotes to rise institutional capital inflows and favorable crypto regulations as key drivers of Bitcoin’s potential price appreciation.
Bitcoin will benefit from increasing institutional flows
After a sudden crash to $89,256 earlier this week, Bitcoin is now aiming to regain the $100,000 price level. A recent report from CryptoQuant predicts that BTC could peak at $249,000 this year, supported by multiple favorable factors, including a pro-crypto stance from Donald Trump’s administration in the US.
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The report suggests that BTC will reach “at least” $145,000 by 2025, with new capital inflows serving as the main catalyst for this bullish momentum. Based on a historical analysis of capital inflows during previous market cycles, the report estimates that $520 billion in new capital could enter the Bitcoin markets this year. It says:
In the context of a positive regulatory environment, accommodative monetary policy and cyclical patterns, it is reasonable to expect capital to continue flowing into Bitcoin through 2025.
The following chart illustrates Bitcoin’s realized market cap since 2015. For those unfamiliar, Bitcoin’s realized market cap represents the cumulative USD value of each BTC at the last point it moved along the chain.
If the market follows historical patterns, the $520 billion in new capital inflows into BTC could become a reality. This new capital injection could push the price of BTC to somewhere between $145,000 and $249,000, as the expansion of BTC’s realized capitalization has a more than proportionate effect on the market value and price of the digital asset.
The report highlights that institutional investors – particularly those with holdings between 100 and 1,000 BTC – are the main contributors to capital inflows into the market. These addresses largely represent institutional-grade custodial services and exchange-traded funds (ETFs).
Notably, institutional participants increased their Bitcoin holdings by $127 billion in 2024, reflecting robust confidence in the cryptocurrency’s long-term potential. Furthermore, the final year of Bitcoin’s four-year cycle is often accompanied by significant price increases for the asset.
All eyes on the US Federal Reserve
Although many crypto analysts and market commentators have a optimistic Bitcoin’s 2025 outlook says some are cautious about the potential impact of the US Federal Reserve’s (Fed) delayed interest rate cuts due to inflation concerns and limited retail investor participation.
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For example, a recent report from 10x Research noted that delayed Fed rate cuts could dampen BTC’s bullish momentum. Furthermore, facts from CME FedWatch indicates a 97.3% probability that the Fed will leave rates unchanged at the Federal Open Market Committee meeting later this month.
This is what asset manager Sygnum says stilt that BTC is likely to experience demand shocks as more institutional investors embrace the emerging asset. At the time of writing, BTC is trading at $99,309, up 2.9% in the last 24 hours.
Featured image from Unsplash, charts from CryptoQuant and TradingView.com