The price of Bitcoin has fallen to around $105,000 after a sharp decline due to escalating tensions in the Middle East, following an Israeli attack on Iranian nuclear sites on June 12.
This sharp decline pushed Bitcoin to levels of $103,000 within hours before it attempted to recover currently, amidst a massive liquidation wave amounting to $636 million from the market, increasing fears of additional declines to $102,000 and possibly $101,000 in the coming days.
Despite the recent negative performance, optimism still dominates the analyses of top experts, who believe that Bitcoin is capable of surpassing the $200,000 barrier before the end of 2025, based on strong incentives supporting this expected upward trajectory. Here are the main points: Global institutions continue to buy Bitcoin to support their portfolios.
Markets are witnessing an increasing institutional influx towards Bitcoin, as major companies from the United States, Europe, and Japan have started to include Bitcoin in their financial reserves, competing with treasury bonds. The increasing demand comes against a limited supply, especially after the recent halving process that reduced mining rewards, leading to growing scarcity that supports price increases. Supply is shrinking.. and miners are reducing sales at the moment.
Miners are only injecting about 500 Bitcoin units daily into the markets, a very limited number compared to the demand from individuals, companies, and investment funds. This stark disparity between demand and supply enhances the chances of Bitcoin's rise, according to traditional supply and demand principles. Bitcoin is turning into digital gold in the eyes of investors, with the perception of Bitcoin increasing as a safe asset and store of value, similar to gold, especially amid global economic volatility and rising geopolitical risks. Investment funds, financial institutions, and even some governments have started to adopt Bitcoin as an alternative reserve asset, giving it a strong support base that paves the way for a potential new upward phase.
Despite the current downturn, many analysts believe that Bitcoin still has a significant opportunity to rise towards $200,000 this year, supported by institutional trends, declining supply, and growing confidence in the digital currency as a reliable investment asset.
