Bitcoin price seems to have finally started to recover strongly in the last few days, breaking through the $100,000 ceiling on Thursday, January 16th. The top cryptocurrency did not stay more than a day above this level the last time it surpassed a six-figure valuation.
But that one the price of Bitcoin has returned to as high as $105,000 this time, the highest level so far in 2025. Interestingly, it seems that this could just be the start of an even bigger rally for the Bitcoin price over the next 12 months.
Is 2025 the peak year for Bitcoin price?
In its latest weekly report, blockchain intelligence firm CryptoQuant revealed its target for the Bitcoin price in 2025. The on-chain analytics platform highlights the potential trajectory of the flagship cryptocurrency over the year.
CryptoQuant estimated that the price of Bitcoin would reach as high as $249,000 – or at least $145,000 – in the new year. This represents somewhere between 45% to 150% positive annual performance for the world’s largest cryptocurrency.
Market intelligence expects the Bitcoin price rally to be catalyzed by institutional capital flows, in conjunction with a favorable regulatory environment, accommodative monetary politics in the United Statesand historical cyclical patterns.
For example, the imminent inauguration and administration of pro-crypto Donald Trump is expected to see crypto-friendly regulators take office and implement positive executive actions. Therefore, CryptoQuant expects an increase in Bitcoin demand when President Trump returns to the Oval Office.
Source: CryptoQuant
In addition, optimistic macroeconomic conditions are also expected to play a significant role in Bitcoin price performance in 2025. “The projected interest rate cuts by the Federal Reserve may provide a favorable environment for capital to flow into risk assets such as Bitcoin,” the report said. .
Additionally, 2025 is the last year of Bitcoin’s 4-year cycle, which has historically been correlated with significant price increases. The price of Bitcoin reached a new record of over $67,000 in the last year of the previous cycle.
While this historical perspective suggests that the market leader could reach a new record high price this year, it also signals the likelihood of a Bitcoin price peak in 2025. As of this writing, Bitcoin price stands at around 104,450, reflecting an increase of over 4% over the past 24 hours.
How much capital will flow into Bitcoin in 2025?
According to CryptoQuantroughly $520 billion could flow into the flagship cryptocurrency this year, especially given favorable regulatory, monetary and cyclical conditions. This forecast was calculated based on the realized capitalization metric, which is the sum value (in US dollars) of each Bitcoin when it last moved on-chain.
CryptoQuant noted:
A total of $86 billion flowed into Bitcoin from 2015 to 2018, then $384 billion from 2019 to 2021, and $440 billion from the end of 2022 to 2025. The realized cap increases especially rapidly in the last year of each Bitcoin cycle, 2017 and 2021 , which would suggest that Bitcoin could experience a similar influx of capital 2025.
The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView
Featured image created by DALL-E, chart from TradingView
