The Bitcoin price appears to have finally began recovering strongly previously few days, breaking through the $100,000 ceiling on Thursday, January 16. The premier cryptocurrency didn’t stay greater than a day above this level the last time it surpassed a six-figure valuation.
Nonetheless, the price of Bitcoin has returned to as high as $105,000 this time around, its highest level up to now in 2025. Interestingly, it seems that this might only be the start of a good greater rally for the Bitcoin price over the following 12 months.
Is 2025 The Peak 12 months For Bitcoin Price?
In its latest weekly report, blockchain intelligence firm CryptoQuant revealed its goal for the Bitcoin price within the 12 months 2025. The on-chain analytics platform sheds light on the potential trajectory of the flagship cryptocurrency over the 12 months.
CryptoQuant projected the value of Bitcoin to succeed in as high as $249,000 — or no less than $145,000 — in the brand new 12 months. This represents somewhere between a forty five% to 150% positive yearly performance for the world’s largest cryptocurrency.
The market intelligence expects the Bitcoin price rally to be catalyzed by institutional capital flows, within the context of a positive regulatory environment, accommodative monetary policy in america, and historical cyclical patterns.
For example, the upcoming inauguration and administration of pro-crypto Donald Trump is predicted to see crypto-friendly regulators take office and implement positive executive actions. Hence, CryptoQuant anticipates a Bitcoin demand rise when President Trump returns to the Oval Office.
Source: CryptoQuant
Moreover, optimistic macroeconomic conditions are also expected to play a major role within the Bitcoin price performance in 2025. “The projected rate of interest reductions by the Federal Reserve could provide a positive environment for capital to flow into risk assets like Bitcoin,” the report read.
Moreover, 2025 is the last 12 months in Bitcoin’s 4-year cycle, which has been historically correlated with significant price surges. The value of Bitcoin reached a latest record high of over $67,000 in the ultimate 12 months of the previous cycle.
While this historical perspective suggests that the market leader could reach a latest all-time high price this 12 months, it also signals the likelihood of a Bitcoin price top in 2025. As of this writing, the Bitcoin price stands at around 104,450, reflecting an over 4% increase previously day.
How Much Capital Will Flow Into Bitcoin In 2025?
In line with CryptoQuant, roughly $520 billion could flow into the flagship cryptocurrency this 12 months, especially considering favorable regulatory, monetary, and cyclical conditions. This projection was calculated based on the realized capitalization metric, which is the sum value (in US dollars) of every Bitcoin when it last moved on-chain.
CryptoQuant noted:
A complete of $86 billion flowed into Bitcoin from 2015 to 2018, then $384 billion from 2019 to 2021, and $440 billion from the tip of 2022 to 2025. The realized cap increases particularly quickly within the last 12 months of every Bitcoin cycle, 2017 and 2021, which might suggest Bitcoin could experience an identical inflow of capital in 2025.
The value of BTC on the each day timeframe | Source: BTCUSDT chart on TradingView
Featured image created by DALL-E, chart from TradingView