According to last week at CryptoQuant reportBitcoin (BTC) could target a price range between $145,000 and $249,000 in 2025. The report states getting up institutional capital inflows and favorable crypto regulations as key drivers of Bitcoin's price appreciation.
Bitcoin to benefit from increasing institutional flows
After a flash crash to $89,256 earlier this week, Bitcoin is now trying to regain the $100,000 price level. A recent report by CryptoQuant predicts that BTC could reach $249,000 this year, supported by several favorable factors, including the pro-crypto stance of the Donald Trump administration in the US.
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The report suggests that BTC will reach “at least” $145,000 in 2025, with an influx of new capital as the main catalyst for this supportive trend. Drawing on historical analysis of capital inflows in 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 that capital will continue to flow into Bitcoin in 2025.
The following chart shows the actual market cap of Bitcoin as of 2015. For those unfamiliar, Bitcoin market capitalization represents the cumulative USD value of each BTC at the last point it moved on chain.
If the market follows historical patterns, the $520 billion in new capital inflows to BTC could become a reality. This new capital injection could push the price of BTC to anywhere between $145,000 and $249,000, as the increase in proven BTC capitalization has a more than proportional impact on the value and market price of this -digital assets.
The report highlights institutional investors – primarily dealing with holdings between 100 and 1,000 BTC – as the main contributors to market capital inflows. These addresses mainly represent institutional-grade custodial services and exchange-traded funds (ETF).
In particular, institutional participants increased their Bitcoin holdings by $127 billion in 2024, showing strong confidence in the cryptocurrency's long-term potential. In addition, the last year of Bitcoin's four-year cycle is often associated with a significant increase in prices for the asset.
All eyes on the US Federal Reserve
While many crypto analysts and market commentators maintain optimistic outlook for Bitcoin in 2025, some expressing caution about the potential impact of the US Federal Reserve's (Fed) delayed interest rate cuts amid inflation concerns and the participation of retail investors.
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For example, a recent report by 10x Research was noted that a delay in interest rate cuts by the Fed could dampen BTC's bullish trend. In addition, data 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.
That said, the Sygnum fund manager poses that BTC is likely to be in high demand as more institutional investors embrace the emerging asset. At press time, BTC trades at $99,309, up 2.9% in the past 24 hours.
Featured image from Unsplash, Charts from CryptoQuant and TradingView.com
