On Friday, bitcoin’s price hovered around $95,000, following a peak of over $108,000 earlier this month. Since the Christmas holiday, Bitcoin, the world’s largest cryptocurrency, has maintained a stable position at nearly $95,000. Investors are anticipating a potential rally for the leading digital currency in 2025.
As U.S. President-elect Donald Trump prepares to commence his second term in 2025, the digital asset sector expresses notable optimism regarding the anticipated growth of Bitcoin. This positive outlook is mainly fueled by Trump’s commitment to positioning the United States as the global “crypto capital.”
On Thursday, bitcoin exchange-traded funds (ETFs), which debuted this January, experienced a significant turnaround with $475 million in inflows following a streak of four consecutive days marked by withdrawals.
In a notable development, exchange-traded funds (ETFs) associated with Ethereum, the second-largest cryptocurrency by market capitalization, have seen inflows totalling $89 million.
“According to BRN’s lead analyst Valentin Fourner, the recent ETF inflows underscore strong institutional backing, especially in light of improving macroeconomic conditions and a potential easing of inflation,” he stated in an interview with The Block.
The recent slowdown in inflation, coupled with a stabilizing economy, has contributed to the growing appeal of cryptocurrency.
There is a noticeable increase in investor interest surrounding artificial intelligence applications within cryptocurrency projects and decentralized finance (DeFi). Ryan Lee, chief analyst at Bitget, stated in an interview with The Block that investments powered by artificial intelligence and high-performance decentralized finance platforms are emerging as a significant area for future growth.
Lee noted that recent developments underscore a transition towards more technologically advanced and innovative crypto investments, albeit with increased risk. “Experts suggest taking advantage of minor price dips to enhance investment in bitcoin and ether.”
Analysts at Bitfinex project that by mid-2025, bitcoin, the world’s largest cryptocurrency, could see a potential rise to $200,000.
Bitfinex analysts have set a minimum price target for Bitcoin, projecting it to reach between $140,000 and $200,000 by mid-2025. The ongoing bull market is characterized by robust institutional demand, primarily driven by exchange-traded funds (ETFs) and spot accumulation. According to historical data, the market is in the middle of its cycle, with projections indicating a peak around the third and fourth quarters of 2025, roughly 450 days after the April 2024 halving. The years following a halving event have historically experienced some of the most significant rallies.