The price of bitcoin appears to have finally started to recover strongly in recent days, breaking through the $100,000 ceiling on Thursday, January 16. The leading cryptocurrency did not stay above this level for more than a day the last time it surpassed a six-figure value. valuation.
However, this time the price of bitcoin has once again reached $105,000, its highest level yet in 2025. Interestingly, it seems that this could be just the beginning of an even bigger rally for the price of bitcoin over the next 12 months. .
Is 2025 the peak year for bitcoin price?
In its latest weekly report, blockchain intelligence company CryptoQuant <a target="_blank" href="https://cryptoquant.com/community/dashboard/6788ee5e37939776ed27f31b?utm_source=telegram&utm_medium=sns&utm_campaign=dashboard&utm_content=crypto-weekly-report” target=”_blank” rel=”noopener nofollow”>revealed its target for the price of bitcoin in the year 2025. The on-chain analysis platform sheds light on the potential trajectory of the flagship cryptocurrency throughout the year.
CryptoQuant projected that the price of bitcoin would reach $249,000 (or at least $145,000) in the new year. This represents between 45% and 150% positive annual returns for the world's largest cryptocurrency.
Market intelligence expects the bitcoin price rally to be catalyzed by institutional capital flows, in the context of a favorable regulatory environment, accommodative monetary policy in the United States, and historical cyclical patterns.
For example, the impending inauguration and administration of pro-crypto Donald Trump is expected to prompt crypto-friendly regulators to take office and implement positive executive actions. CryptoQuant therefore anticipates an increase in demand for bitcoin when President Trump returns to the Oval Office.
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Source: CryptoQuant
Furthermore, optimistic macroeconomic conditions are also expected to play an important role in bitcoin price performance in 2025. “Projected interest rate reductions by the Federal Reserve could provide a favorable environment for capital to flow into assets.” like bitcoin,” the report reads. .
Additionally, 2025 is the last year of bitcoin's 4-year cycle, which has historically been correlated with significant price increases. bitcoin price 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 hit a new all-time high price this year, it also points to the likelihood of the bitcoin price peaking in 2025. At the time of writing, the bitcoin price is stands at around 104,450, reflecting a 4% increase in the last day.
How much capital will flow into bitcoin in 2025?
According to CryptoQuant, approximately $520 billion could flow into the flagship cryptocurrency this year, especially considering favorable regulatory, monetary, and cyclical conditions. This projection was calculated based on the realized capitalization metric, which is the total value (in US dollars) of each bitcoin when it was 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 limit increases particularly rapidly in the last year of each bitcoin cycle, 2017 and 2021, which would suggest that bitcoin could experience a similar capital inflow in 2025.
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The price of btc on the daily timeframe | Source: BTCUSDT chart on x/USzlgaln/" target="_blank" rel="noopener nofollow">TradingView
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