Bitcoin

Bitcoin Price Holds Firm Above $87K, What’s Next?

Dive into the full breakdown of BTC’s performance, key drivers, and future outlook

Written By : Pardeep Sharma

Bitcoin Price Analysis - Bitcoin (BTC) continues to assert its dominance in the cryptocurrency market, trading at approximately $87,235.41 on March 25, 2025. This marks a 1.92% gain in the last 24 hours, adding to a 4.10% increase over the past week. The total market capitalization of Bitcoin now stands near $1.65 trillion, while its 24-hour trading volume sits around $35.34 billion. These numbers reflect renewed investor confidence and a potential continuation of the ongoing bullish trend.

Institutional Demand and Market Drivers

One of the most significant contributors to Bitcoin’s current rally is institutional accumulation. MicroStrategy, a leading business intelligence firm known for its aggressive Bitcoin acquisition strategy, recently expanded its portfolio. Between March 17 and 23, the company added 6,911 BTC to its holdings, amounting to a purchase of approximately $584.1 million. MicroStrategy now owns over 500,000 BTC, with a total valuation exceeding $44 billion.

This level of institutional involvement reinforces the perception of Bitcoin as a long-term digital asset and store of value. As corporate treasuries and asset managers increase exposure to BTC, the cryptocurrency’s price finds strong support, even during periods of broader market uncertainty.

Another factor influencing Bitcoin’s trajectory is the return of inflows into Bitcoin Exchange-Traded Funds (ETFs). The past week recorded net inflows of $644 million into digital asset investment products, reversing a five-week trend of outflows. Bitcoin accounted for $724 million of these inflows, while other assets like Ethereum experienced net withdrawals. The renewed interest in BTC-focused ETFs suggests growing preference for Bitcoin over alternative cryptocurrencies.

Geopolitical Factors and Economic Influence

Global economic sentiment has also played a crucial role in Bitcoin’s latest movements. Remarks from President Donald Trump regarding possible tariff exemptions have eased concerns over trade restrictions. Financial markets responded positively, and cryptocurrencies benefited from the improved outlook. Bitcoin's price briefly climbed above $88,500 following these comments, reflecting its sensitivity to macroeconomic and geopolitical developments.

Additionally, continued fears of inflation and potential monetary tightening from central banks have led many market participants to seek hedges against fiat currency devaluation. In this context, Bitcoin, with its capped supply and decentralized structure, gains appeal as a hedge, particularly for institutional investors looking to diversify risk.

Technical Analysis: Key Levels and Indicators

From a technical standpoint, Bitcoin price movement suggests the formation of a bullish continuation pattern. The cryptocurrency has broken out of a two-month consolidation phase, and traders now eye potential price targets between $90,000 and $95,000 in the near term.

Key support lies at $86,822. Maintaining price action above this level could solidify momentum and attract additional buying pressure. Should Bitcoin fall below this threshold, short-term correction toward the $83,000–$84,000 range may occur before any significant upside resumes.

Momentum indicators also support the bullish narrative. The Relative Strength Index (RSI), a key metric measuring overbought or oversold conditions, recently broke above a four-month descending trendline. This breakout signals a potential shift in momentum toward buyers, suggesting that bullish sentiment may persist if volumes hold.

Chart patterns point to increasing confidence among traders, with higher lows forming on the daily timeframe. Volume has also risen during upward moves, indicating strong conviction behind each rally.

Bitcoin vs. Traditional Assets

While Bitcoin has gained significant ground, competition from traditional safe-haven assets remains strong. Gold, in particular, has performed well in recent months, with prices climbing above $3,000 per ounce. Institutional investors still favor gold for its historical role as a store of wealth and stability during market downturns.

The comparison between Bitcoin and gold remains central to discussions about long-term asset allocation. Advocates of Bitcoin argue that it represents a more efficient and accessible store of value due to its digital nature, 24/7 liquidity, and portability. However, gold continues to appeal to conservative investors seeking lower volatility and regulatory clarity.

Market Sentiment and Forecasts

Sentiment around Bitcoin's future remains cautiously optimistic. Prediction markets and futures data show that traders expect Bitcoin to maintain its bullish structure through 2025. Estimates suggest a 61% chance of Bitcoin reaching $110,000 by the end of the year, based on open interest and market positioning. However, expectations of Bitcoin hitting extreme highs—such as $150,000 or $200,000—remain limited, with probabilities around 29% and 14%, respectively.

Despite the cautious outlook from some quarters, others maintain highly bullish projections. Certain analysts foresee Bitcoin reaching as high as $130,000 within the next 90 days, citing rising ETF inflows, increasing institutional demand, and strong technical indicators.

These contrasting forecasts reflect the broader uncertainty in financial markets, where economic variables like inflation, interest rates, and geopolitical developments remain difficult to predict. Bitcoin, operating within this complex web of influences, continues to attract both speculative and long-term capital.

On-Chain Metrics and Network Health

Bitcoin’s on-chain fundamentals remain strong. Hash rate—an indicator of network security—continues to trend upward, signaling growing participation from miners and stronger network resilience. The number of non-zero addresses is also increasing, suggesting a broadening user base and rising global adoption.

Transaction volumes on the Bitcoin network remain healthy, with significant activity observed across both retail and institutional wallets. Network fees remain manageable, ensuring that transactions continue to flow smoothly without congestion.

Long-term holders have continued to accumulate BTC, reducing available supply on exchanges. This behavior supports the ongoing supply crunch narrative, which could propel prices upward in the absence of significant selling pressure.

Bitcoin's recent performance illustrates a robust market structure supported by institutional capital, strong on-chain metrics, and a favorable technical setup. Price movement above $87,000, coupled with inflows into ETFs and bullish chart patterns, signals continued confidence in the asset.

However, Bitcoin remains sensitive to global macroeconomic conditions, monetary policy shifts, and investor sentiment. While the road to $100,000 and beyond remains plausible, the cryptocurrency must navigate through potential headwinds, including competition from gold, potential regulatory tightening, and short-term volatility.

Market participants will continue to watch key support and resistance levels, institutional movements, and broader economic trends to determine whether Bitcoin can maintain its upward trajectory through the remainder of 2025.

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