$BTC Bitcoin emerges as a pivotal player in the global financial markets, driven by growing institutional momentum and significant regulatory changes, while the price movements of this currency are no longer merely speculative waves, but rather reflect a complex intersection between monetary policy decisions and its increasing integration into the traditional investment system.
While economic uncertainty dominates the global scene, Bitcoin is regaining its appeal as a hedge against inflation and market risks, coinciding with massive financial inflows from major companies and funds, amidst technical and financial indicators suggesting that the digital currency is heading towards new record levels in the coming months.
This remarkable shift reopens the discussion about the ceiling of possible ambitions for Bitcoin's price, and the realism of bets expecting it to reach between $130,000 and $200,000.
The price of Bitcoin reached its all-time high in May, before declining by about 10% in the following nine days.
A report from the American "CNBC" network indicates three main reasons why Bitcoin is approaching its all-time high of $130,000, which are as follows:
Strong institutional demand.
Macroeconomic environment: Despite concerns about inflation caused by tariffs, U.S. bond yields are stable, paving the way for a rise in risk-associated assets.
Improvement in the regulatory environment: U.S. legislation and regulations for stablecoins are expected to be issued, increasing acceptance of cryptocurrencies and stable-value currencies. There is also a growing demand from companies for Bitcoin as a treasury asset.
Turning to technical analysis, the chart of Bitcoin futures shows a clear upward trend since late 2022.
The Bitcoin exchange-traded fund ($IBIT) has officially surpassed $70 billion in assets under management for the first time. It took only 341 trading days to reach this level, the fastest record for any exchange-traded fund ever. This also surpassed the previous record of 1,691 days set by the gold exchange-traded fund ($GLD), which was five times slower.
Rising activity
In turn, the head of global markets at Cedra Markets, Joe Yerk, points out in exclusive statements to "Sky News Arabia Economy" that Bitcoin is currently experiencing rising activity and is still in the process of climbing towards levels between $130,000 and $200,000.
He adds:
In some expert houses and analysts, it is expected that Bitcoin will reach between $150,000 and $200,000, and we have several reasons for this recently.
After the outbreak of the trade war, the use of Bitcoin as a hedge increased, with significant buying acceptance from investors. As prices rose, risks grew, but that did not prevent the trend towards crypto assets.
We have witnessed significant increases this year, especially after the establishment of funds and the encouragement of major investment banks to trade Bitcoin. The presence of official government funds embracing Bitcoin has increased investors' appetite.
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The current regulatory environments, led by clear support during President Trump's term, are among the major catalysts. He (the U.S. President) and his sons were among the first in this sector, providing a supportive environment for additional increases, especially with the rising demand that pushes prices higher.
The $150,000 target
A report from the "Markets" platform affiliated with Safecap indicates that:
Some analysts and enthusiasts are optimistic about Bitcoin's price reaching $150,000 during the year 2025.
These expectations are often based on historical performance, market cycles, and the increasing scarcity of Bitcoin as more people adopt it.
Others take a more cautious approach, indicating that although Bitcoin may not reach $150,000, significant growth is still possible.
Factors such as market corrections, regulatory challenges, and competition from other cryptocurrencies could temper its rise.
A price range of between $100,000 and $120,000 is often cited as a more realistic target for 2025.
Record levels
For his part, financial markets expert Mohamed Said stated in exclusive comments to "Sky News Arabia Economy":
"The current optimism about the possibility of Bitcoin reaching $130,000 during the year 2025 is not just a wish from speculators, but rather a reflection of the integration of a set of strong factors that have clearly emerged in the market movement recently."
One of the most prominent factors is the large institutional inflow into the market, following the approval of the launch of spot Bitcoin exchange-traded funds in the United States, which attracted billions of dollars in a short period.
Estimates suggest that every billion dollars injected into the market raises the price of Bitcoin by between 3% to 6%.
In addition, major companies like MicroStrategy continue to buy large amounts of Bitcoin, contributing to reducing the free supply of the digital currency and creating persistent buying pressure.
He adds: As for the regulatory aspect, we have witnessed a radical shift following the U.S. Securities and Exchange Commission's decision to lift several rules that hindered the entry of banks and traditional financial institutions into the digital assets market. This has opened the door wide for banks, pension funds, and sovereign wealth funds to invest in Bitcoin without previous regulatory constraints, representing a qualitative leap in the relationship between Bitcoin and the traditional financial system.
He adds: From a technical standpoint, Bitcoin's break above historical resistance levels at $109 and $111 is a strong signal of entering a new bullish wave.
Saeed explains that:
It is also noteworthy that options markets are betting on higher levels reaching $120,000, $130,000, and even $150,000 in short-term bets, reflecting widespread optimism among major traders.
Another motivating factor is the anticipation of decisions from the U.S. Federal Reserve regarding interest rates. If rates are lowered or there are hints of monetary easing, it will increase liquidity in the markets, which typically benefits high-risk assets like Bitcoin.
Amid ongoing uncertainty in the global economy, and with Bitcoin returning to the forefront as a hedge against inflation, we can say there is a realistic scenario for Bitcoin reaching new record levels, perhaps before the end of this year or at the beginning of the next year.
The financial markets expert emphasizes that this scenario remains a possibility, not a certainty, although its features are supported by unprecedented institutional momentum, significant regulatory changes, and clear technical signals, in addition to expectations of increased liquidity resulting from monetary policy trends.
