Experts predict that with increasing liquidity and political developments, the Bitcoin price could exceed $110,000 and reach up to $1 million in 2025.
While it is stated that Bitcoin has entered a “parabolic phase” in the market cycle, experts predict that the price could rise above $ 110,000 by the end of January. It was emphasized that the correlation between the Total Liquidity Index of Global Macro Investor and the Bitcoin price points to this increase.
Bitcoin’s “Local Peak” Expectation
Raoul Pal, founder and CEO of Global Macro Investor, noted in a Nov. 29 post that the $110,000 level is merely a “local top” for Bitcoin’s current cycle. “There are inaccurate versions of this chart circulating. Here is an updated version of our original work at Global Macro Investor,” Pal added.
According to Pal’s estimates, the Bitcoin price could reach $110,000 in January 2025. However, a temporary decline below $70,000 is expected in February 2025. He stated that this correction will be short-lived and prices will recover again due to the “intermediate peak” in liquidity.
Increased Liquidity and Bitcoin
Alvin Kan, chief operating officer at Bitget Wallet, said that liquidity increases by the US Federal Reserve have generally created a positive environment for risk assets like Bitcoin. “Historically, such liquidity injections have led to increased investor interest and capital inflows into cryptocurrencies,” he said.
Analysts expect global liquidity to peak in January 2026. Bitcoin is expected to absorb 10% of the new money supply printed during this period, which could mean $2 trillion in new investment in Bitcoin through 2025.
Bitcoin Price Could Surpass $132K
According to Jamie Coutts, chief crypto analyst at Real Vision, increased liquidity could push Bitcoin’s price above $132,000 next year. “That’s my long-term expectation for this cycle, a 12-month forecast based on a linear relationship with liquidity. But Bitcoin cycles are not linear; we can go much higher,” Coutts said.
Trump Victory and Its Impact on Cryptocurrencies
Following former US President Donald Trump’s election victory on November 5, it was stated that a new wave of risk appetite emerged in the markets and this would support the cryptocurrency rally in 2025. “With the Trump administration taking office, we expect all crypto assets to make new highs thanks to a more supportive regulatory environment,” Bitfinex analysts said.
Blockstream CEO and Hashcash inventor Adam Back suggested that the price of Bitcoin could reach $1 million if the Trump administration approves a potential strategic Bitcoin reserve.
Stay tuned