Bitcoin Could Reach $250,000 by 2025, Says Analyst
Crypto analyst Scott Melker has expressed his bullish outlook on Bitcoin, predicting that the cryptocurrency could reach $250,000 by the end of 2025. Melker, known for hosting The Wolf of All Streets podcast, attributes this potential surge to increased institutional demand and a maturing market structure. He noted that Bitcoin’s volatility has significantly decreased, making it a more stable investment option compared to its earlier days.
Melker highlighted that Bitcoin’s volatility has reduced from being three times as volatile as the S&P 500 to less than two times. This shift is largely due to the involvement of pension funds and exchange-traded fund (ETF) issuers, which have replaced short-term speculators with long-term investors. This transition has transformed Bitcoin from a high-risk asset to a potential cornerstone of investment portfolios.
Recent market movements support Melker’s optimistic view. In May, Bitcoin climbed above $104,000, while Ethereum surpassed $2,600. This rally was accompanied by broader market gains, including surges in smaller-cap altcoins, indicating new capital entering the crypto space. The addition of Coinbase to the S&P 500 further signaled the growing legitimacy of crypto firms in traditional financial circles.
Additional momentum has come from firms like Galaxy Digital and eToro, which are pursuing public listings in a more favorable regulatory environment. Melker cited paused enforcement actions by the SEC and pro-crypto signals from the White House as contributing factors to the bullish backdrop. Despite most analysts expecting Bitcoin to peak between $120,000 and $150,000 this cycle, Melker noted that Bitcoin’s history includes unpredictable upside moves. From the 2020 lows to the last peak, Bitcoin surged from $3,000 to $69,000, suggesting that a 2.5x move from current levels would not be unprecedented.
Adam Back, a prominent figure in the Bitcoin community and CEO of Blockstream, shares a similarly bullish outlook. Back believes that Bitcoin is significantly undervalued and could surge to between $500,000 and $1 million per coin during the current market cycle. He expressed surprise at Bitcoin’s current price level, given the surge in institutional interest and major developments in the crypto landscape. Back argued that the price does not yet reflect the full scope of bullish momentum building behind the asset.
Michael Saylor, founder of Strategy, attributed Bitcoin’s recent price stagnation below the $150,000 mark to short-term holders exiting the market. He noted that Bitcoin is now finding its way into the hands of institutions and investors with a longer time horizon, particularly through spot Bitcoin ETFs and corporate treasury strategies. This shift towards institutional investment further supports the view that Bitcoin is maturing as an asset class.
