Bitcoin's 2025 Price Target: $250,000, Driven by Institutional Interest and Reduced Volatility

Coin WorldSaturday, May 17, 2025 8:29 am ET
1min read

Crypto analyst Scott Melker, host of The Wolf of All Streets podcast, has expressed optimism about Bitcoin's potential to reach $250,000 by the end of 2025. Melker attributes this possibility to several key factors, including growing institutional interest and a significant reduction in volatility. He noted that Bitcoin's volatility has decreased from being about three times as volatile as the S&P 500 to less than two times, indicating a more stable market environment. This shift is largely due to increased involvement from pension funds and ETF issuers, which Melker sees as evidence of a maturing market.

The analyst highlighted that the more institutional money and long-term holders enter the market, the less volatile Bitcoin becomes. This trend reflects a broader acceptance of Bitcoin by traditional financial institutions, which is crucial for its long-term growth. Melker also pointed to recent developments in the crypto market, such as the addition of Coinbase to the S&P 500, as a significant milestone. Coinbase's inclusion in the top 50 by market cap underscores the deep integration of some crypto firms into mainstream finance.

In addition to Coinbase, other firms like Galaxy Digital and eToro have moved forward with public listings, signaling confidence in the current regulatory environment. Melker described this backdrop as "extremely bullish" for the sector, bolstered by dropped SEC lawsuits and favorable executive orders. While Bitcoin remains the primary focus, Melker acknowledged a renewed interest in altcoins. Recent price action saw Ethereum outpace Bitcoin, triggering a rally across smaller-cap tokens. This, he said, indicates that "new money" is entering the space rather than just rotating within it.

Despite the optimism, Melker tempered expectations, noting that most experts are forecasting cycle highs between $120,000 and $150,000. However, he emphasized that wild surges are not uncommon in the crypto market. From the 2020 lows to the last bull market, Bitcoin went from $3,000 to $69,000, a 2.5x increase from the current price would not be unprecedented. On May 16, an analytics account argued that Bitcoin has a "decent chance" of hitting $250,000 or more in 2025 as attention turns to gold copycat moves. On April 28, Peter Chung, head of research at a quantitative trading firm, repeated his prediction that Bitcoin will reach $210,000 by the end of 2025. On April 22, analysts from a bank and an AI firm said institutional Bitcoin demand from exchange-traded funds and traders seeking to hedge against macroeconomic risk could cause Bitcoin’s price to more than double this year.