Reasons to Trust
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A recent forecast by financial services company Standard Chartered suggests that Bitcoin (BTC), the leading cryptocurrency in the market, could reach new record highs of nearly $120,000 in the second quarter (Q2) of 2025.
By the end of 2025, Bitcoin’s price could potentially rise to $200,000, representing a 65% increase from the Q2 target and over 110% from its current value. This projection indicates a potential growth of around 25% from current levels.
Bitcoin’s Surge Amid Rising Term Premium
Analyst Geoff Kendrick highlights several factors contributing to the optimistic outlook on Bitcoin’s price, including the US Treasury term premium, which is currently at a 12-year high.
The term premium refers to the additional yield that investors demand for holding longer-dated Treasury bonds compared to shorter-term ones, indicating favorable market conditions for Bitcoin as an investment.
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In addition to macroeconomic indicators, Kendrick points out the accumulation of Bitcoin by major large-cap investors, known as “whales,” as a trend that suggests increasing confidence in the cryptocurrency’s value.
For example, Bitcoin proxy firm Strategy (formerly MicroStrategy), led by BTC advocate Michael Saylor and currently the largest corporate holder of Bitcoin, recently disclosed another round of weekly purchases.
Potential Sideways Trading Ahead?
Another notable trend is the flow of funds into Bitcoin exchange-traded funds (ETFs), which Kendrick interprets as a safe-haven reallocation from traditional assets like gold.
This shift reflects investors’ increasing perception of Bitcoin as a viable alternative during uncertain economic periods.
As of Monday morning, Bitcoin was trading around $95,300, maintaining relatively stable performance for the year but showing a 51% increase compared to the same time last year.
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Kendrick warns that historical patterns in Bitcoin’s price action suggest that sharp increases are often followed by extended periods of sideways trading. On the other hand, Seeking Alpha analyst Damir Tokic offers a more cautious view of Bitcoin’s future trajectory.
While BTC could continue to decline alongside the Nasdaq 100 if market sell-off accelerates and investor sentiment weakens, there is also potential for Bitcoin to establish itself as a safe-haven asset, especially if the US dollar continues to depreciate.
At the time of writing, BTC retraced below the $95,000 mark to around $94,560, still showing a 1.1% increase in the 24-hour timeframe. Meanwhile, Ethereum (ETH) has outperformed BTC with nearly a 14% surge in the weekly timeframe compared to Bitcoin’s 7.3% surge in the same period.
Other major altcoins like XRP and Solana (SOL) have also experienced significant price recoveries, recording gains of 10% and 6% in the weekly timeframe.
Featured image from DALL-E, chart from TradingView.com