.png){kind=logo}
Melker, host of The Wolf of All Streets, believes institutional demand and a stabilizing market could push Bitcoin to $250,000 by the end of 2025.
Major players like pension funds and firms such as Galaxy Digital are reinforcing Bitcoin’s place in traditional finance.
With Bitcoin having surged over 20x in the last cycle, a 2.5x jump from current levels is not unreasonable, especially amid strong fundamentals and reduced volatility.
Bitcoin's price trajectory could diverge from expected trends if crypto analyst Scott Melker's most recent prediction is accurate. The host of "The Wolf of All Streets" podcast has made a bold prediction that suggests Bitcoin could reach $250,000 by the end of 2025, supported by a combination of maturing market mechanics and increased institutional participation.
Melker's bullish take is in stark contrast to more conservative estimates that project a Bitcoin cycle peak between $120,000 and $150,000. He points out that the crypto market's ever-changing nature, especially with the increased participation from traditional finance, is essential for monumental growth.
One of the most compelling evidence for Melker's thesis is Bitcoin's diminishing volatility. Historically known for wild price swings, Bitcoin is now showing signs of stabilization.
“It used to be about three times as volatile as the S&P 500. Now it’s less than two times,” Melker said, noting this change has made Bitcoin more attractive as a serious investment.
This declining volatility is no coincidence. It comes amid a wave of institutional investment, including the entry of pension funds and the remarkable uptick in spot Bitcoin ETF approvals.
According to Melker, institutional capital is the key indicator for Bitcoin's next phase. The entry of traditional finance products tied to the cryptocurrency market, from ETFs to crypto management companies, has provided an avenue for investors to get some exposure to this asset class that just a few years ago seemed too volatile or speculative.
He explains that as we replace short-term holders with long-term holders, the market's volatility will decline. This gradual institutional adoption is moving Bitcoin from a fringe asset to the mainstream.
The appearance of pension funds and traditional firms like Galaxy Digital and eToro seeking a public listing tells us we are moving toward a maturing market. Melker referred to this transition as an "extremely bullish backdrop" for 2025 and beyond.
Coinbase's addition to the S&P 500 was one of the biggest milestones in demonstrating crypto's integration into traditional finance. Not only did it make it into the S&P 500, but it ranked in the top 50 by market cap, a clear signal that crypto companies are now part of the finance ecosystem.
The addition of Coinbase to the index gives millions of traditional investors indirect access to crypto markets and gives the sector credibility with regulators, fund managers, and retail investors.
Melker’s optimism is also underscored by a marked shift in the regulatory environment. With the SEC lightening enforcement actions and the White House indicating a more crypto-friendly perspective, the regulatory environment seems more approachable than in past cycles.
This softening of the regulatory environment may attract additional positive institutional investment and lower the barriers to entry for newcomers, tightening the Bitcoin supply-demand problem even more.
Melker’s target of $250,000 might be ambitious, but it's not even the most bullish. Adam Back, CEO of Blockstream and early Bitcoin developer, believes Bitcoin could rise to $500,000 to $1 million this cycle, stating that Bitcoin is "obviously underpriced", even as it is trading around $103,000.
Back reminds us that while Bitcoin is now trading just under its all-time high, and the market has not even priced in the full effects of institutional adoption or the macro factors that currently exist, opinions regarding Bitcoin's price limits can be based on sound rationale.
Also Read: Wall Street: Bitcoin to Soar to $250K, Overtake Dollar by 2035!
Skeptics might view Melker's $250,000 projection as a stretch, but history indicates otherwise: "Bitcoin went from $3,000 to $69,000 from the 2020 lows to the last bullish market," Melker said. "That's more than 20x." A 2.5x move from current prices would be mild by crypto standards.
Past cycles have often produced astonishing upside surprises, especially when fundamentals and institutional momentum are strong, which both are for 2025.
Although not all analysts would agree with Melker’s bold forecast, the elements that support a major rally have never been stronger. The combination of less volatility, more institutional adoption, regulatory easing, and a holistic maturation of the markets is shifting the conversation around Bitcoin.
Whether Bitcoin reaches $250,000 by the end of 2025 or not, it's clear that Bitcoin is entering a new phase, which is likely to change its role not only in individual portfolios but in the global financial system.
Also Read: Will Bitcoin Reach $250K by the End of 2025? Cardano Founder Weighs In
