Key takeaways:

• Bitcoin’s 98% supply in profit signals bullish sentiment but warns of volatility and potential price corrections.

• Analysts predict BTC could hit $200,000 by 2025, but sustained demand is key.

Bitcoin (BTC) price predictions of $200,000 by the end of 2025 are becoming increasingly common, as a surge in profitability not only signals growing bullishness but also risk of a correction in the shorter term.

Bitcoin supply in profit soars to 98%

BTC supply in profit rose sharply to 98% from 87% between June 22 and Sunday, according to onchain data resource Glassnode. As of Tuesday, about 96.7% of all Bitcoin were in profit, sitting above the high band as shown in the chart below.

Historically, such elevated levels lead to market volatility as the potential for profit-taking grows, reflecting bullish sentiment amid caution for price corrections.

Related: Bitcoin ‘vertical acceleration’ off the table for now: Bitfinex

Between January and April, for instance, BTC price fell to $74,000 from about $109,000, a drop preceded by Bitcoin’s profitable supply rising to as high as 98.8% on Jan. 21.

Profitability data reflects these bullish albeit cautious market conditions. For instance, Bitcoin’s realized profit/loss ratio has jumped to 2.8 from 1.1 since June 22, exceeding the high band threshold of 2.4, a 156.4% rise.

While this “reflects strong market confidence, it hints at heightened risk of profit-taking and demand exhaustion if price momentum falls,” Glassnode analysts said in their latest Weekly Market Pulse report.

“The market looks to have entered a cautiously optimistic regime, with stronger positioning from institutional players and renewed accumulation,” Glassnode explained, adding:

“For this rally to sustain, continued demand and broader market confidence will be essential.”

Bitcoin set for “explosive” breakout to $200,000

In November 2022, Bitcoin bounced from the bear market bottom at $15,500, staging a 590% rally to the current price of about $107,000. This price action has seen higher highs and higher lows, forming a channel in the weekly time frame, according to analyst Stockmoney Lizards. 

“Bitcoin is about to break out of a multi-year channel,” the analyst said in a Monday post on X. 

An accompanying chart showed the price seeking to break above the upper trendline, with the Stockmoney Lizards setting the short-term target at $140,000 and the end-of-year target at $200,000.

“The next leg will be explosive.”

This aligns with the analyst’s earlier predictions that Bitcoin’s breakout of the monthly Optimized Trend Tracker (OTT) bands also targets $200,000 in 2025, with a possible “extension” to $250,000 next year.

Analyst Mags said Bitcoin’s breakout above the same upper trendline as Stockmoney Lizards’ “could trigger a massive bull run.” Mags’ short-term target is the 2.618 Fibonacci level at $155,000.

The Bitcoin price prediction of $200,000, in particular, is becoming an increasingly popular target for the second half of 2025. For example, 21st Capital co-founder Sina predicts BTC may hit $130,000 to $200,000 by Q4 2025 based on a power law model. 

Bitwise Investment said that a falling US Dollar Index fueled by US President Donald Trump’s trade policies could push BTC to $200,000.

Bernstein Research said Bitcoin has the potential to reach $200,000 by the end of 2025, backed by increased institutional demand through spot Bitcoin ETFs and BTC treasury companies. 

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.