Market overview: Bitcoin pushing for $100K again; Is the correction over?

Source Cryptopolitan

CryptoRank’s data suggests the BTC correction period is likely ending soon as on-chain data suggested a possible rally to $100K. The report claimed Bitcoin could be targeting $145K-249K in 2025 due to institutional capital flows and a favorable regulatory environment. 

CryptoQuant’s report disclosed that the current BTC price rally was in the context of accomodative monetary policy in the U.S. and historical cyclical patterns. As per the report, Bitcoin’s demand in 2025 could be boosted by the incoming U.S. administration’s pro-crypto stance and the appointment of crypto-friendly regulators. Potential executive orders by Trump are also expected to drive the price of Bitcoin upward.

The CryptoQuant report also suggested that the projected Fed interest rate cuts could provide a favorable environment for capital flow into risk assets like Bitcoin. 

Huge institutional-driven Bitcoin capital inflow pushes price upward 

Matt Hougan, chief investment officer of Bitwise Asset Management, thinks the growing trend of institutional BTC purchases is only beginning. In a new analysis, Hougan predicted that hundreds of companies will add Bitcoin to their corporate treasuries in the next 12-18 months, likely causing the BTC  price to skyrocket. He noted that the trend is already a lot bigger than MicroStrategy, the largest corporate BTC holder. 

CryptoQuant’s report also revealed that 2025 could see $520 million in new capital if the historical analysis of capital inflows during past cycles maintained the same trend.

Institutional investors with addresses holding between 100 and 100K BTC are currently driving a significant portion of the market’s capital inflows. This week alone, MicroStrategy bought 2,530 BTC to raise its total holdings to 450,000 and Semler Scientific’s holdings rose to 2,321 BTC after purchasing 237 BTC. LQwD Tech added 7 BTC to its holding, bringing the total to 148 BTC, while Matador bought its first 29 BTC.

The amount of institutional money flowing into Bitcoin was measured using the realized market capitalization metric, explained the report. 

“We continue to target bitcoin at the $200,000 level by end-2025 as institutional inflows resume under the Trump administration.”

Geoff Kendrick, Head of crypto research at Standard Chartered Bank

BlackRock’s head of digital assets, Robert Mitchnick, said institutional [bitcoin] adoption is still in its early days. According to Bitcoin for Corporations, 2024 was a record-breaking year for corporate Bitcoin adoption as institutional treasuries added over $1.5 million.

Government BTC reserves grew more than 5x to a total of 513,793 BTC, while public company BTC holdings increased to 589,934. In total, including custodial services for institutions and ETFs, institutional addresses increased their holdings by $127 billion in 2024. 

BTC could briefly drop to $80K amid ‘macro sell-off’ before rising again 

A Standard Chartered report warned that BTC prices could experience a short-term decline amid a broader macroeconomic sell-off that could potentially add losses if forced selling accelerated. The report said investors who gained BTC exposure after the U.S. elections in November are now only breaking even, creating a panic that could amplify the downward trend.

Geoff Kendrick, Standard Chartered’s head of digital assets research, said the mark-to-market pain is building. 

The report highlighted that Bitcoin could dip another 10% if BTC were to fall below the critical $90K threshold, briefly bringing the price down to the $80K level. Standard Chartered, however, remained optimistic about Bitcoin’s long-term trajectory despite the current market turbulence, suggesting a BTC price surge to over $200K by year-end. 

Tom Lee, head of research at Fundstrat, said Bitcoin’s outlook for 2025 remains positive with an end-of-year price target of $200K to $500K.

Analysts surveyed by Standard Chartered anticipate crypto policies from Trump’s administration could propel BTC price to as high as $400K. The bank attributed this potential BTC rise to the Trump effect but advised waiting for the retracement before buying more Bitcoin in the short-term.

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Disclaimer: For information purposes only. Past performance is not indicative of future results.
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