Key Takeaways:
Bybit forecasts that Bitcoin may reach a valuation of $125,000 by the conclusion of Q2, attributing this potential surge to regulatory advancements, increasing institutional investments, and a declining U.S. dollar.
The introduction of the GENIUS Act and a rise in institutional interest are further solidifying Bitcoin’s position as a prominent asset in the financial market. However, while the outlook for Bitcoin appears robust, alternative cryptocurrencies (altcoins) may encounter challenges due to elevated interest rates and ongoing economic uncertainties.
According to Shunyet Jan, Head of Derivatives at Bybit, the world’s second-largest cryptocurrency exchange by trading volume, Bitcoin’s recent ascent to a new all-time high marks merely the beginning of its growth trajectory.
In a market update issued on Thursday, Jan suggested that if prevailing trends continue, Bitcoin could attain the $125,000 mark by the end of Q2.
“Bitcoin’s ascent to this record high signifies a pivotal shift in global finance,” Jan stated, highlighting three primary factors fueling this rally: clearer regulation, inflows from institutional investors, and macroeconomic challenges facing the U.S. dollar.
Impact of the GENIUS Act on Adoption
Jan underscored the significance of the recently proposed GENIUS Act, which aims to establish clearer guidelines for stablecoins.
“Such regulatory frameworks foster confidence and enhance infrastructure,” he remarked, facilitating further adoption among institutional players.
At the same time, Bitcoin spot ETFs are experiencing steady inflows, indicating that institutional investors are seriously considering Bitcoin as a viable asset class.
“These investment products offer regulated access to Bitcoin, attracting long-term capital,” he added.
From a macroeconomic perspective, the declining U.S. dollar is generating increased interest in Bitcoin as a global hedge.
“Bitcoin’s inverse relationship with the dollar amplifies its significance as digital gold,” Jan noted.
While expressing optimism about Bitcoin’s future, Jan offered a note of caution regarding altcoins. “Ethereum and other major cryptocurrencies may follow Bitcoin’s upward momentum, but high interest rates and economic uncertainties could limit gains for smaller altcoins,” he cautioned.
With Bitcoin trading above $110,000, Bybit’s projection of $125,000 by the end of the quarter reflects a growing confidence in Bitcoin’s pivotal role within the evolving financial landscape.
Long-Term Bitcoin Predictions
In a recent commentary, crypto analyst Scott Melker suggested that Bitcoin could potentially reach $250,000 by the close of 2025, spurred by institutional interest and a maturing market structure.
Melker, host of The Wolf of All Streets podcast, highlighted the reduction in market volatility and deeper integration with traditional financial systems as key drivers for the next significant rally.
“A price point of $250,000 this year is entirely feasible,” he remarked, pointing out that Bitcoin’s volatility has considerably diminished. “Previously, it was about three times as volatile as the S&P; now it is less than double.”
Moreover, Adam Back, a notable figure in the Bitcoin community and CEO of Blockstream, has articulated his belief that Bitcoin is notably undervalued, predicting that it could soar to between $500,000 and $1 million per coin during the current market cycle.
In a recent interview, Back expressed astonishment at Bitcoin’s price considering the significant institutional interest and major advancements in the cryptocurrency sector.
He contended that the current price does not yet mirror the full extent of the bullish momentum building behind Bitcoin.
Additionally, Michael Saylor, founder of Strategy, noted that Bitcoin’s recent price stagnation below the $150,000 threshold can be attributed to short-term holders exiting the market.
He emphasized that Bitcoin is increasingly being acquired by institutions and investors with a longer investment horizon, particularly through spot Bitcoin ETFs and corporate treasury strategies.
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