Three reasons why Bitcoin could hit a new all-time high in February 2025

• Bitcoin responds well to Federal Reserve Chair Jerome Powell’s remarks and holds steady above $104,000 on Friday. 
• Czech National Bank approved a proposal to explore investment in other asset classes, including Bitcoin. 
• In 2024, Bitcoin rallied 43.55% in February, the year that Bitcoin bull run kicked in, a repeat of the phenomenon is likely.
• Sergei Gorev, Head of Risk at YouHodler, shares optimism for BTC gains. 

Bitcoin (BTC) trades above $104,000 on Friday as sentiment among crypto traders improve. The largest cryptocurrency has recovered from the shock of DeepSeek’s release and the Federal Reserve’s (Fed) interest rate decision this week. 

Fed Chair Jerome Powell’s comments on the interest rate proved to be a “nothing burger” for Bitcoin with the token preparing for a likely re-test of the all-time high at $109,588. 

In an exclusive interview with FXStreet, YouHodler’s Head of Risk shared his insights on what to expect from Bitcoin price in February 2025. 

Bitcoin eyes re-test of all-time high

Bitcoin is less than 5% below its all-time high after completing its recovery from Monday’s flash crash. BTC traders de-risked heavily on Monday, ahead of the US macro releases lined up this week and in response to the correction in tech stocks and equities. 

Bitcoin’s recovery has pushed the asset back above $104,000, a key support level for BTC. 

Technical indicators support the thesis that Bitcoin could test its all-time high of $109,588 and enter price discovery in February. 

The Relative Strength Index (RSI) on the BTC/USDT daily price chart reads 60 and is sloping upwards. 

The Moving Average Convergence Divergence (MACD) indicator shows a green histogram bar above the neutral line after a few consecutive red bars, signaling a return of underlying positive momentum in Bitcoin’s price trend. 

BTC/USDT daily price chart 

BTC could find support in the imbalance zone between $100,866 and $102,277 if there is a correction in the token’s price. 

The Bitcoin monthly returns table for the past twelve years shows that BTC rallied 10 out of 12 times. In 2024, Bitcoin gained 43.55%, in 2023, during the bear market phase BTC price was nearly unchanged and in 2022, it rallied 12.21%, according to Coinglass data. 

If history repeats itself, in the 2025 bull market Bitcoin could observe a double-digit price rally. 

Bitcoin monthly returns | Source: Coinglass

Why Czech National Bank could be the first in the world to hold Bitcoin reserves?

According to a K33 research report published on Friday, the Czech National Bank approved a proposal to explore investing in additional asset classes, including BTC. 

The bank’s governor, Aleš Michl, drafted a plan to allocate up to 5% of its $146 billion worth of reserves to BTC. If the proposal is accepted, the bank could potentially invest $7.3 billion in Bitcoin. 

The Czech central bank could be the first in the world to hold BTC reserves. The sentiment towards Bitcoin has shifted among institutions and central banks, given Michl’s proposition. European Central Bank (ECB) President Christine Lagarde continues to maintain her cautious outlook on BTC as an investment. 

Expert tells FXStreet why he is bullish on Bitcoin

Sergei Gorev, Head of Risk at YouHodler, told FXStreet:

“The cryptocurrency market is finishing the first month of the year rather optimistically. Historically, the first month of the new year has indicated future dynamics for the stock and crypto markets throughout the year. For example, if January closes in positive territory, it is highly probable that the whole year will be positive and vice versa.

We now see that the BTC exchange rate has increased by about 12% since the beginning of 2025, giving us reason for optimism for 2025. Moreover, from the point of view of technical analysis, bitcoin is again drawing a sideways correction in the form of a flag, which is also a continuation pattern with a massive prospect of updating historical highs shortly.”

Gorev remains optimistic about further gains in Bitcoin price.