Bitcoin reached an all-time high of $107,780 and is currently trading at $105,791, giving it a market capitalization of $2.09 trillion. Analysts predict that the rally will continue in 2025, with Bitcoin potentially reaching between $145,000 and $200,000. Despite the uncertainty of the traditional Santa rally in cryptocurrencies, small layer 1 cryptocurrencies may outperform Bitcoin and Ethereum. US ETFs continue to support Bitcoin growth, with significant net inflows and holdings reaching 5.383% of all Bitcoin.
With Bitcoin hitting a new all-time high of US$107,780 (A$169,178) just a few hours ago, investors are wondering whether we'll soon see a Santa rally or what about Christmas and 2025. I have doubts.
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At the time of writing, BTC is trading at US$105,791 (A$166,057), with a market capitalization of US$2.09 trillion (A$3.28 trillion), and Bitcoin It is ranked 7th in the world after Google.
Top assets by market capitalization, source: Companiesmarketcap.com
Analysts say volatility expected in 2025
According to Bitfinex analysts, the current price surge is likely to continue in 2025. Analysts predict that any correction could be short-lived and modest.
Their minimum price target for Bitcoin is US$145,000 (A$227,703) by mid-2025, or US$200,000 (A$314,073) in “favorable conditions”.
Overall, Bitfinex analysts believe that 2025 should be a positive year for Bitcoin, cryptocurrencies, and the stock market due to the deal with President Trump.
In summary, 2025 presents a cautiously optimistic economic environment characterized by steady growth, persistent structural challenges, and strategic policy adjustments. Normalization across sectors brings stability, but external risks and inflationary pressures remain key considerations to maintain momentum.
bitfinex
Moreover, the open volume analysis suggests a cautious outlook on the potential Santa rally, and while the traditional year-end rally seen in stocks may not directly apply to cryptocurrencies, there is still an opportunity for volatility. Emphasized.
Kaidaka points out that the correlation between Bitcoin and the S&P 500 has weakened, and the 24/7 nature of the cryptocurrency has made its behavior unpredictable.
Although it is unlikely that BTC will gain another $15,000 in the next 10 days or so, this does not mean that other assets will not benefit.
opening height
Their analysis shows that even though “BTC ETFs are driving price discovery,” smaller layer 1s outperform BTC and ETH.
US ETFs expect another $2 billion trading week
Meanwhile, US spot exchange-traded funds (ETFs) continue to be the driving force behind Bitcoin's growth, with Michael Saylor's MicroStrategy continuing to buy Bitcoin at unprecedented levels.
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Net inflows into US ETFs last week totaled US$2.16 billion (A$3.39 billion), making it one of the strongest trading weeks on record. The BiTBO flow tracker shows strong interest in these ETFs, with inflows far exceeding outflows.
US Spot Bitcoin ETF Flow Tracker, Source: BiTBO/The Block Data
US ETFs currently hold 5.383% of the total 21 million Bitcoins, while BlackRock's iShares Bitcoin Trust (IBIT) holds 539,020 BTC or 2.567% of the total.
