Bitcoin (BTC) Price Prediction: Will It Hit $130K by End of 2025?

Over the next 12 months, Bitcoin is predicted to show a notable increase, and if present momentum keeps, estimates indicate the value of the coin could reach six-digit figures.

Bitcoin price notably increased over the past few months, and if the current momentum continues, the coin’s value could reach six-digit figures, estimates suggest.

Analysis from Ecoinometrics suggests that Bitcoin’s price could reach over $130,000 by the end of 2025 if key factors, such as stable on-chain activity and high momentum for risky assets, are maintained. Given Bitcoin’s current price at around $65,000, maintaining this level is crucial to induce a positive trend.

Maintaining Momentum and Breaking the Downtrend

The ecoinometrics projection is based on a simple model that evaluates four main factors: on-chain activity, Bitcoin price volatility, and the momentum of both Bitcoin and other risky assets.

With a median return projection of about 103%, if Bitcoin and related assets maintain their momentum, they could generate an average annual return of 148%, in an optimistic scenario.

However, the study also adds that Bitcoin’s potential upside over the next 12 months could reach 465%, despite the possibility of a 26% decline in the worst-case scenario. To build upward momentum, analysts highlight the importance of maintaining Bitcoin’s price above $65,000.

Besides these technical aspects, Ecoinometrics points out how Bitcoin’s ability to maintain a price above $65,000 could disrupt the trend of lower highs and lower lows observed since March.

This pattern, if left undisturbed, could indicate a continuing downtrend. However, if Bitcoin counters this and maintains either sideways or positive movements, the digital asset could be observing a major turning point.

Bitcoin Correlation with Stock Markets and U.S. Money Supply

The BTC price has been rising in tandem with the NASDAQ 100 since August, indicating a closer correlation with the U.S. stock market. Analysts believe that this correlation will benefit Bitcoin if broader stock markets continue to trend upwards.

Moreover, recent on-chain data suggests that Bitcoin hodlers are largely maintaining their positions, which bodes well for the future price action.

Apart from the technical analysis, Ecoinometrics notes that the BTC price could also vary depending on the growth in the U.S. money supply (M2). While M2 is rising again, analysts note that its increase is not on par with the breakneck pace observed during the COVID-19 pandemic, when M2 grew five-fold.

According to Ecoinometrics, the current increase in the money supply is a normalizing phase after the pandemic era, rather than a new expansion. So, while the rising money supply could still be good for Bitcoin investors, it’s not the extreme expansion witnessed in 2020 and 2021.

Bitcoin Role as a Hedge Against Fiat Currency Devaluation

Despite this, Ecoinometrics suggests that Bitcoin can continue to offer solid gains even without trillions of new money flooding the economy.

The ongoing devaluation of fiat currencies, driven by budget deficits and rising government debt, remains a concern, making Bitcoin’s role as a hedge against fiat devaluation more relevant than ever.

“Bitcoin thrived during periods of fast money creation, but it remains a strategic hedge even without extreme money printing,” noted an Ecoinometrics analyst, highlighting Bitcoin’s continuing appeal as a safe haven from fiat devaluation.

Meanwhile, a CNF report featured Ki Young Ju, CEO of blockchain analytics firm CryptoQuant, who predicted that Bitcoin will become a mainstream currency by 2030.

According to Ju, increasing institutional interest and rising mining difficulty will help to drastically reduce Bitcoin’s volatility before the end of this decade.

On the other hand, Bitcoin was trading at $67,039.04 at the last check, down 1.39% over the past 24 hours with a daily trading volume of $39.80 billion.

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