Bitcoin Price Forecast: Market Sentiment Remains Bullish Amidst Ongoing Inflation Concerns

The Bull Run Continues; Bitfinex Projects $200,000 Bitcoin Price in 2025

Digital asset exchange Bitfinex has predicted a massive surge in Bitcoin’s (BTC) price by the end of 2025, forecasting a price tag of $200,000. The forecast comes amidst an already bullish market sentiment that has seen the cryptocurrency skyrocket past $107K.

According to a recent report, Bitfinex attributes the expected rally to institutional demand and macroeconomic factors. Institutional investors have already been increasingly drawn to Bitcoin, with over $37 billion flowing into spot ETFs this year alone. The approval of these funds is expected to continue driving demand in the coming years.

Further fueling the bull run is the indication that the current cycle has not yet reached its peak. Cycle indicators such as Market Value to Realized Value (MVRV) and Net Unrealized Profit/Loss (NUPL) suggest that a significant price jump may be on the horizon. While previous cycles have seen giant peaks, experts warn against expecting an immediate short-term surge.

Market participants are pinning their hopes on the upcoming halving event, which has traditionally preceded notable price increases in Bitcoin’s history. Next year’s Q1 rally is expected to mirror 2024’s performance, with miners repositioning holdings ahead of the event.

Additionally, rising inflationary trends may drive more investors towards Bitcoin as a store of value to protect their assets from economic uncertainty. The current inflation rate remains steady at 3.3% YoY, despite the Fed’s restrictive stance on monetary policy.

Lastly, the market anticipates favorable crypto laws in the United States to positively impact the global sentiment and attract further institutional investment.

Source: zycrypto.com