Bitcoin bull phase may lead to $339,000 peak in 2025
Bitcoin (CRYPTO:BTC), currently trading above $107,000, is in a bull phase according to analysts at Bitfinex, though far from "euphoric peaks."
The cryptocurrency is projected to reach its peak between Q3 and Q4 of 2025, with potential highs of $339,000 or $145,000 due to diminishing returns, limiting its gains compared to past cycles.
Bitcoin has surged 573% from its bear market lows of $15,487 in November 2022, and 130% year-to-date.
This rally is largely driven by strong institutional demand and the growth of Bitcoin exchange-traded funds (ETFs).
Spot ETFs, in particular, have become a dominant force, holding over 1.13 million BTC and attracting more than $50 billion in inflows.
According to Bitfinex analysts, the presence of institutional and ETF demand will likely result in smaller and shorter corrections throughout this bull cycle.
Data from prior cycles suggest that post-halving corrections have been minimal, with 2017 seeing a maximum decline of 33.2%, and 2020 experiencing a smaller 27.1% correction.
"In the current bull cycle, which began in mid to late 2023, Bitcoin's corrections have been smaller, particularly since the launch of Bitcoin ETFs in early 2024. With institutional and ETF demand providing consistent buying pressure, we expect this trend to continue, keeping future corrections limited and potentially shorter in duration," Bitfinex stated.
While the forecast for 2025 remains optimistic, analysts caution that Bitcoin's rallies may not match the scale of previous cycles.
The diminishing returns trend suggests that Bitcoin could peak at $160,000 to $200,000 in mid-2025, or possibly reach $290,000 by early 2026 in a less likely scenario.
At the time of reporting, the price of Bitcoin (BTC) was $106,165.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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