Bitcoin’s next explosive move could send the asset to $250,000 by the end of 2025, according to Scott Melker, a crypto analyst and host of The Wolf of All Streets podcast.

Speaking in a recent interview, Melker cited growing institutional interest and diminishing volatility as key factors that could drive the next leg up.

“250K this year, totally possible,” Melker said, adding that Bitcoin (BTC)’s volatility has declined significantly in recent years.

“It used to be about three times as volatile as the S&P. Now it’s less than two times.” He pointed to increased involvement from pension funds and ETF issuers as evidence of a more mature, stable market.

The shift, he argued, reflects a broader trend of institutional adoption. “The more institutional money, the more Wall Street money, the more long-term holders get involved, the less volatility there’s going to be,” Melker explained.

Crypto markets show signs of strength in 2025

Market activity in 2025 has already shown signs of strength. Bitcoin surged past $104,000, while Ether (ETH) reclaimed levels above $2,600.

Coinbase’s addition to the S&P 500 marked a major milestone for crypto’s integration into mainstream finance. Melker noted the company is not just entering the index but doing so in the top 50 by market cap — a reflection of how deeply rooted some crypto firms have become.

In addition to Coinbase, firms like Galaxy Digital and eToro have moved forward with public listings, signaling confidence in regulatory conditions under the current US administration.

Melker said that this environment, bolstered by dropped SEC lawsuits and favorable executive orders, has created what he calls “an extremely bullish” backdrop for the sector.

While Bitcoin remains the primary focus, Melker acknowledged a renewed interest in altcoins. Recent price action saw Ethereum outpace Bitcoin, triggering a rally across smaller-cap tokens — a sign, he said, that “new money” is entering the space rather than just rotating within it.

Don’t rule out a wild run

Despite the optimism, Melker tempered expectations, noting that most experts are forecasting cycle highs between $120,000 and $150,000. Still, he emphasized that wild surges are not out of the ordinary in crypto.

“From the 2020 lows to the last bull market, Bitcoin went from $3,000 to $69,000. A 2.5x from here wouldn’t be a big deal.”

On May 16, X analytics account Apsk32 argued that Bitcoin has a “decent chance” of hitting $250,000 or more in 2025 as attention turns to gold copycat moves.

On April 28, Peter Chung, head of research at quantitative trading firm Presto, also repeated his prediction that Bitcoin will reach $210,000 by the end of 2025.

On April 22, analysts from Standard Chartered and Intellectia AI said institutional Bitcoin demand from exchange-traded funds and traders seeking to hedge against macroeconomic risk could cause Bitcoin’s price to more than double this year.