Bitcoin (BTC)
price broke through the $120,000 threshold for the first time Monday morning,
reaching a peak of $122,533 as institutional investors poured money into the
world’s largest cryptocurrency. The milestone comes as Congress prepares to
debate key digital asset legislation this week.

Technical
analysis suggests that Bitcoin could rise another 30% in the coming months,
while asset manager Bitwise offers an even more bullish forecast, projecting a
70% increase by the end of 2025. Let’s take a closer look at what’s driving
Bitcoin’s rally and what may lie ahead for BTC, including the newest price
predictions.

Why Is Bitcoin Going Up Today?
BTC Price Hits New All-Time High (ATH)

According
to CoinMarketCap data, Bitcoin is currently trading at $122,218, up 3.6% over
the past 24 hours, accompanied by a 126% surge in daily trading volume.

The
cryptocurrency has gained about 30% since December and is up 29% year-to-date.
Bitcoin’s latest surge follows months of sideways trading around the $100,000
level, with investors now betting on favorable regulatory developments and
continued institutional adoption.

“This
shift signals a maturing perspective on Bitcoin – not merely a speculative
asset, but a macro hedge and a structurally scarce store of value,” said
George Mandres, Senior Trader at XBTO Trading LLC.

Bitcoin ETF Inflows Drive
Institutional Demand

The rally
has been fueled largely by massive inflows into Bitcoin exchange-traded funds.
On Thursday alone, Bitcoin ETFs recorded their biggest day of inflows in 2025
at $1.18 billion. Some days have seen ETFs purchase 10,000 Bitcoin while the
network only produces 450 new coins daily.

US-based
Bitcoin ETFs have now attracted over $50 billion in total inflows since their
launch 18 months ago. BlackRock’s IBIT fund alone has seen $53 billion in gross
inflows, while Fidelity’s FBTC ranks second with $12.29 billion.

“There’s
unrelenting demand from corporations and institutional investors, and that’s
colliding with severely limited supply,” said Matt Hougan, Chief
Investment Officer at Bitwise. “This institutional investment into Bitcoin
is a one-time event. It’s going to take years to play out.”

Crypto Week Brings
Regulatory Clarity

The timing
coincides with what Washington has dubbed “Crypto Week,” where
lawmakers will debate three major bills: the CLARITY Act for regulatory
oversight, the GENIUS Act creating stablecoin rules, and the Anti-CBDC
Surveillance State Act.

President
Trump, who calls himself the “crypto president,” has pushed for
crypto-friendly policies since taking office. His administration’s Digital
Asset Task Force is expected to release a policy report on July 22, potentially
including a Strategic Bitcoin Reserve proposal.

“It’s
riding a number of tailwinds at the moment,” said Tony Sycamore, market
analyst at IG, citing institutional demand, regulatory support, and Trump’s
backing.

How High Can Bitcoin Go?
Technical Analyst Points To $160K

Based on my
technical analysis, Bitcoin has clearly broken through the previous resistance
from May, located around $112,000. A new local support zone is now beginning to
form, which may support further price discovery. Although analyzing charts in
these previously untested price areas is challenging, projections based on
Fibonacci extensions have proven helpful.

Bitcoin has
already reached the first target suggested by the indicator—around $120,000
(the 61.8% extension level). The next targets are $136,000 (100%) and,
ultimately, nearly $160,000 (161.8% Fibonacci extension).

While the
market may currently be somewhat overvalued, a potential pullback toward the
$110,000–$100,000 range would not invalidate the bullish outlook. From a
technical indicator perspective, the setup remains positive, and sentiment
continues to be strongly bullish, which could support further price gains.

Only a
break below $100,000 and the 200-day EMA, currently positioned around $97,000,
could signal a potential trend reversal. And while my forecast is decidedly
bullish, it is still more conservative than that of Bitwise’s CIO, who is
targeting $200,000 by the end of the year.

Bitcoin Price Prediction
2025: Analysts See Path to $200,000

Several
analysts believe Bitcoin’s rally has much further to run. Hougan predicts the
cryptocurrency “could end the year closer to $200,000”, representing
a roughly 70% gain from current levels.

“I think it
has a long way to go. I think it could end the year closer to $200,000. So I
would get used to this story of new all-time highs,” he added.

10x
Research has set targets of $140,000 to $160,000 for 2025, while other
forecasts suggest Bitcoin could reach $130,000 to $150,000 by year-end.

“Bitcoin’s
cleared $120,000, but the real test is $125,000,” said Rachael Lucas,
crypto analyst at BTC Markets. She noted that “the uptrend has fuel”
driven by strong ETF demand, with support at $112,000 making any dip “a
buying opportunity, not a reversal.”

You may also like: This Financial Advisor Who Called Bitcoin’s Rise Just Made Another Bold $500K Price Prediction

Macro Factors Support BTC Rally

Beyond
regulatory optimism, analysts point to broader economic factors supporting
Bitcoin’s rise. Markus Thielen from 10x Research argues the rally reflects
concerns about US fiscal policy, with Trump’s recent legislation potentially
adding $2.3 trillion to $5 trillion in federal deficits over the next decade.

“Bitcoin
has become a macro asset, a hedge against unchecked deficit spending,”
Thielen said. “Alongside gold, Bitcoin is now positioned as the primary
defense against a looming fiscal crisis.”

The broader
crypto market has followed Bitcoin higher, with the total market value reaching
$3.78 trillion. Ethereum rose 1.5% while XRP and Solana both gained about 2.7%.

However,
some analysts remain cautious about the sustainability of the rally. “In
my view, this isn’t a macro-driven rally, but rather an isolated event,”
said Nicolai Sondergaard, research analyst at Nansen.

The rally
also triggered over $1 billion in liquidations of bearish crypto positions,
according to Coinglass data.

Bitcoin Price Analysis FAQ

Why Is Bitcoin Surging
Right Now?

Bitcoin’s
current rally to record highs above $120,000 is driven by several converging
factors that have created perfect storm conditions for the cryptocurrency.

Institutional
demand has become the primary driver. Bitcoin ETFs are experiencing
unprecedented inflows, with some days seeing purchases of 10,000 Bitcoin while
the network only produces 450 new coins daily. This supply-demand imbalance is
creating persistent upward pressure on prices.

What’s Causing Bitcoin to
Rise?

The rise
stems from Bitcoin’s transformation into what analysts call a
“structurally scarce store of value.” Several specific factors are
fueling this transformation: Supply constraints are becoming more apparent as
institutional adoption accelerates. With only 450 Bitcoin produced daily and
massive ETF inflows, the fundamental supply-demand equation heavily favors
price appreciation.

What If I Invested $1,000
in Bitcoin 10 Years Ago?

A $1,000
investment in Bitcoin 10 years ago (July 2015) would have generated
extraordinary returns, though exact calculations depend on the specific
purchase date. In July 2015, Bitcoin was trading around $280-$300. A $1,000
investment would have purchased approximately 3.3 to 3.6 Bitcoin. At today’s
price of $120,000, that investment would now be worth approximately $396,000 to
$432,000 – representing a return of roughly 39,500% to 43,100%.

How Much Will $1 Bitcoin
Be Worth in 2025?

Based on
current analyst predictions and market dynamics, Bitcoin could see significant
appreciation through the remainder of 2025. Conservative estimates from
analysts suggest Bitcoin could reach $130,000 to $150,000 by year-end,
representing roughly 8-25% gains from current levels. Aggressive projections
are more bullish. Bitwise CIO Matt Hougan believes Bitcoin “could end the
year closer to $200,000,” which would represent approximately 67% upside
from current prices.