With maintaining stability above the $114,000 threshold, and with liquidity increasingly flowing into ETFs that bolster institutional demand, questions are rising among investors and traders: Will we witness a new breakout towards the $125,000 level, or perhaps further than that before the end of 2025?

These questions are not limited to speculation, but stem from fundamental analysis and are based on real data and economic and technical indicators that support the possibility of continued upward momentum. Considering the expected rate cuts at least twice before the end of 2025 and the on-chain metrics, along with macroeconomic trends in the global economy, and the impact of the halving cycle, the factors are numerous and intertwined.

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💥First: The monetary policy of the U.S. Federal Reserve and the expected interest rate cuts

One of the factors that could give a strong additional boost to Bitcoin's price in 2025 is the expected direction of the U.S. Federal Reserve toward reducing interest rates two times or more before the end of the year. This accommodative monetary policy path means lowering borrowing costs and increasing liquidity in the markets, which encourages investors to move away from fixed-income assets and search for higher growth opportunities, such as Bitcoin. Historically, periods of interest rate cuts have been associated with increased appetite for alternative and riskier assets, which may provide additional fuel to push the price toward levels of $150,000 or more.

💥Second: Exchange supply indicators:

A scarcity in supply is one of the main factors supporting the price, as the amount of Bitcoin available on exchanges has dropped to its lowest levels in years. This shortage in sellable supply indicates that investors prefer to hold long-term rather than sell, creating additional buying pressure with any increase in demand.

💥Third: Whale Accumulation

Chain data indicates that whales — wallets holding more than 1,000 Bitcoin — are in an active buying state. This pattern typically precedes strong price movements, reflecting the confidence of major players in the continuation of the upward trend.

💥Fourth: Weakness of the U.S. Dollar Index (DXY)

The global decline in the strength of the dollar enhances the attractiveness of alternative assets, with Bitcoin at the forefront. In periods of weakness for the U.S. dollar, investors seek safe havens or assets with limited supply, which makes Bitcoin a strategic choice.

💥Fifth: The impact of Exchange-Traded Funds (ETFs)

The increasing flows toward funds like iShares Bitcoin ETF (IBIT), which has surpassed $86 billion in assets under management, represent a massive institutional demand not seen in previous cycles. These funds make investing in Bitcoin easier for institutions and large investors, continuously raising demand.

💥Sixth: Adoption by major companies and increase in held assets

MetaPlanet's move to increase its holdings to over 17,500 Bitcoin, following an additional purchase of 463 Bitcoin in August, reflects a growing shift among companies to consider Bitcoin a strategic asset in their balance sheets.

💥Seventh: Regulatory clarity

The passage of the GENIUS Act in the United States, which provides a clearer framework for regulating digital assets, has alleviated legal concerns that were hindering more institutions from entering. This positive legal climate opens the door to new capital.

💥Eighth: Technical analysis and support levels. From a technical standpoint, the chart shows strong support near the $110,000 level, reducing the chances of a deep decline in the short term. With a break above any psychological resistance at $125,000, the next target could shift to the $130,000 - $150,000 range.

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🔥Summary and Predictions

All indicators suggest that Bitcoin may not stop at the $125,000 threshold. Instead, this level could merely be a stop on its path toward new record numbers in 2025, especially if current conditions remain as they are.

However, caution remains necessary, as the cryptocurrency market is inherently volatile, and any sharp changes in monetary policies or geopolitical situations could impact the trend.