Bitcoin Could Reach $250,000 by 2025, Says Analyst
2min read Crypto analyst Scott Melker has expressed optimism about Bitcoin's future, stating that a price of $250,000 by 2025 is "totally possible." Melker attributes this potential surge to two primary factors: institutional adoption and declining volatility. Institutional adoption refers to the increasing involvement of large financial institutions and corporations in the cryptocurrency market. As more institutions invest in Bitcoin, the demand for the cryptocurrency is likely to increase, driving up its price. Declining volatility, on the other hand, refers to the decreasing price fluctuations of Bitcoin. As the cryptocurrency becomes more stable, it may attract more investors who are wary of its volatile nature. Melker's prediction is based on these two factors, which he believes will contribute to Bitcoin's growth in the coming years. However, it is important to note that Melker's prediction is based on his analysis and is not a guarantee of future performance. The cryptocurrency market is highly volatile and unpredictable, and there are many factors that could affect Bitcoin's price in the future.
Melker cited growing institutional interest and diminishing volatility as key factors that could drive the next leg up. He pointed to increased involvement from pension funds and ETF issuers as evidence of a more mature, stable market. The shift, he argued, reflects a broader trend of institutional adoption. “The more institutional money, the more Wall Street money, the more long-term holders get involved, the less volatility there’s going to be,” Melker explained. This trend is supported by recent market activity, with Bitcoin surging past $104,000 and Ether reclaiming levels above $2,600. Additionally, the addition of Coinbase to the S&P 500 marked a major milestone for crypto’s integration into mainstream finance, with the company entering the index in the top 50 by market cap. This reflects how deeply rooted some crypto firms have become in the financial landscape.
Melker also noted that firms like Galaxy Digital and eToro have moved forward with public listings, signaling confidence in regulatory conditions under the current administration. This environment, bolstered by dropped SEC lawsuits and favorable executive orders, has created what he calls “an extremely bullish” backdrop for the sector. 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 — a sign, he said, 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. Still, he emphasized that wild surges are not out of the ordinary in crypto. “From the 2020 lows to the last bull market, Bitcoin went from $3,000 to $69,000. A 2.5x from here wouldn’t be a big deal.” 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, also repeated his prediction that Bitcoin will reach $210,000 by the end of 2025. On April 22, analysts 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.
