Although Bitcoin has recorded considerable success this bull cycle, a recent analysis highlights five reasons why its price would still rally twofold from here.
Bitcoin is the best-performing currency so far this year and ranks among the most successful assets overall. Several major factors have contributed to this rally, including increased purchases from Bitcoin corporate treasury companies and inflows from US spot ETFs.
Meanwhile, this might be the beginning of Bitcoin’s rally. According to “EliteOptionsTrader,” the premier crypto asset would see another 100% price increase before the end of this year.
First, he cited the Ethereum spot exchange-traded fund approval as a key propellant. He noted that if the funds replicate Bitcoin’s success, more institutional presence will enter the crypto space, steering a “halo effect” for Bitcoin.
Meanwhile, he further highlighted the expected rate cuts in the fourth quarter of 2025 to boost Bitcoin’s price. Quantitative easing by the Federal Reserve System would weaken the dollar more, causing a global market shift to Bitcoin as an inflation hedge.
Notably, President Donald Trump has been pressuring Fed Chair Jerome Powell to cut rates, insisting it is good for the economy. This event has historically impacted Bitcoin’s price positively, and EliteOptions Trader believes this time will be no different.
Thirdly, the analyst noted that institutional fear of missing out (FOMO) will further drive adoption and consequently the price of BTC. While hedge funds and sovereign wealth funds are increasingly entering the market, only a few have done so. As Bitcoin’s price continues to show strength, more large-scale investors will consider exposure, fueling fresh allocation.
Supply Shock and Surging M2 to Push Bitcoin
Furthermore, the tweet noted that the momentum from the Bitcoin halving event is not fully priced in. The automated 4-year mining reward slash occurred in April 2024, dropping the block reward to 3.125 BTC.
With more demand for Bitcoin in today’s market, the lowered token creation would spur a supply shock, driving prices even higher. This aligns with an earlier projection from Lightspark CEO David Marcus, who asserted that it is going to be wild for BTC from here on.
Lastly, the analyst highlighted the growing global liquidity as a win for Bitcoin. The M2 money supply recently reached a new all-time high as central banks globally resumed economic easing. He shared that the increased liquidity would drive more appetite for Bitcoin, further placing BTC on course for $250,000 by the end of the year.
Interestingly, EliteOptionsTrader noted that if Bitcoin breaks above $127,000, there is a promising chance it will resume a parabolic expansion to extreme highs.