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Bitcoin price is still rising, having exceeded $120,000, and is now approaching its all-time high. This increase is driven by growing institutional interest due to macroeconomic factors and corporate purchasing.
Experts predict that Bitcoin will reach $150,000 by the end of the year, but inflation fears might impact the bitcoin rally.
The remarkable rise of Bitcoin is inflated by more institutional investment. The cumulative holdings of digital asset firms are $113 billion in Bitcoin and $13 billion in Ethereum. These increasing reserves indicate a shift in market perception with mass institutional investors recognizing the potential of Bitcoin as a store of value.
Rachael Lucas, a cryptocurrency analyst at BTC Markets, discusses increased institutional support driving Bitcoin and the hoaxes about gold tariffs. With supply chain issues and the tariff threat affecting gold, Bitcoin's appeal as a store of value is becoming stronger. Investors who use the currency to hedge against gold's uncertainties also influence the increase in Bitcoin's value.
Bitcoin's performance has been steady and aligns with risk assets in the overall market. The US stock rally, fueled by optimism about Federal Reserve rate cuts, has helped push Bitcoin close to its previous highs.
Ecoinometrics also notes the increasing correlation between the Nasdaq and Bitcoin. This change in momentum has contributed to the rise in Bitcoin's price. Investors also wager on a favorable macroeconomic setting as the Federal Reserve continues to anticipate rate cuts to boost interest in Bitcoin.
Analysts believe that the July Consumer Price Index (CPI) report will shed some vital light on inflation trends. A weaker-than-expected CPI number may further support a rate cut as soon as September, which will add value to Bitcoin.
Most analysts are expecting a bullish run to continue with Bitcoin's current momentum. According to Sean Dawson, the Head of Research at Deribit, Bitcoin might have a price as high as $150,000 at the end of 2025. However, there is a degree of caution based on inflation data risks, which, due to its short-term risks, may trigger sharp corrections.
Nevertheless, even with these possible risks, Bitcoin is increasingly finding favour among institutional investors, with corporate entities like MicroStrategy accumulating substantial holdings. An increase in the price of Bitcoin in recent months indicates its increased acceptance in the mainstream financial system, positioning it for a strong finish to 2025.
Also Read: Bitcoin News Today: Bitcoin Auction for Dogwifhat Meme Cap Hits $800K Amid Growing NFT Interest
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