Bitcoin will likely experience short-lived price dips in 2025 due to increased institutional demand, according to Bitfinex analysts.
They foresee the coin doubling its current value by June to reach $200,000. Interestingly, these analysts initially estimated a Bitcoin rally to $140,000 by mid-2025.
Bitcoin Could be Subject to Extreme Volatility in the First Quarter, Bitfinex Says
Bitfinex expects high volatility in the Bitcoin market during the first quarter of 2025. The exchange points to continued institutional inflows into Bitcoin spot exchange-traded funds (ETFs) and increased global adoption as the catalysts of the price volatility. Furthermore, it claims the broader price trend will be upward.
Bitcoin ETFs have been a massive success since their launch in January 2024. According to Farside Investors data, these new crypto products have seen inflows worth $36 million in the past 11 months. Their issuers, which include BlackRock and Bitwise, hold over 1.1 million Bitcoin.
Analysts Make Bold Price Predictions
Bifinex analysts expect continued institutional adoption of ETFs to push Bitcoin’s price into new territories next year. Nic Carter, a partner at Castle Island Ventures, holds a similar view, predicting a bullish move to $250,000 before the end of 2025. Moreover, he foresees Bitcoin matching Gold’s market cap ($18 trillion) in the future. In such a scenario, BTC would be trading above $900,000.
Meanwhile, Bitfinex analysts are optimistic that Bitcoin will mirror its 2021 performance in 2025. They predict a rally to $340,000 by December next year, with a drop to $290,000 at the start of 2026.
Creation of US Bitcoin Reserve Could Extend the Bull Run, Says Crypto Analyst
While many expect the ongoing bull run to reach its peak during the fourth quarter of 2025, popular analyst Tyler Durden, on the other hand, claims that Bitcoin’s price will continue going higher if the United States adopts a strategic reserve. He argues that this move will encourage other countries to adopt a Bitcoin reserve, thus boosting the demand for the coin.
If Donald Trump’s administration implements a Bitcoin reserve, the US will buy about one million coins within five years and hold them for twenty years.
