The Bitcoin price seems to be making a strong recovery in recent days, breaking past the $100, 000 mark on Thursday, January 16. Previously, the leading cryptocurrency did not hold above this level for more than a day when it first crossed the six-figure threshold. This time, however, Bitcoin has climbed to as high as $105, 000, marking its highest point in 2025 thus far. Interestingly, this may be just the onset of a much larger rally in Bitcoin’s value over the coming year. Is 2025 The Peak Year For Bitcoin Price? In its most recent weekly report, blockchain analytics firm CryptoQuant has shared its projection for Bitcoin's price in 2025. This platform provides insights into the expected trends for the flagship cryptocurrency throughout the year. CryptoQuant anticipates Bitcoin may soar as high as $249, 000—or at least reach $145, 000—in the new year. This signifies a potential annual growth rate of between 45% and 150% for the largest cryptocurrency in the market. The firm believes that institutional investment and capital flows, in conjunction with a favorable regulatory atmosphere, supportive monetary policies in the U. S. , and established historical patterns, will drive this rally. For example, the upcoming administration of pro-crypto Donald Trump is likely to see the installation of crypto-friendly regulators who could implement positive executive measures. As such, CryptoQuant expects an increase in demand for Bitcoin when Trump resumes his presidency. Additionally, favorable macroeconomic conditions are also projected to significantly influence Bitcoin's performance in 2025.

The report indicates that "proposed interest rate cuts by the Federal Reserve could create an encouraging environment for capital to pour into risk assets like Bitcoin. " Furthermore, 2025 marks the final year in Bitcoin’s four-year cycle, which has been historically associated with notable price increases. In the last year of the previous cycle, Bitcoin achieved a record high of over $67, 000. While this historical insight points toward the possibility of the market leading to a new all-time high this year, it also suggests a prominent peak for Bitcoin in 2025. Currently, Bitcoin's price is approximately $104, 450, reflecting a rise of over 4% in the past day. How Much Capital Will Flow Into Bitcoin In 2025? CryptoQuant estimates that around $520 billion could potentially enter the flagship cryptocurrency this year, particularly given the favorable regulatory, monetary, and cyclical circumstances. This figure was derived using the realized capitalization metric, which reflects the sum value in U. S. dollars of each Bitcoin based on its most recent on-chain activity. CryptoQuant highlighted: Between 2015 to 2018, Bitcoin received $86 billion, followed by $384 billion from 2019 to 2021, and $440 billion from late 2022 through 2025. Historically, the realized cap has surged notably in the last year of each Bitcoin cycle—specifically in 2017 and 2021—suggesting that a similar influx of capital could occur in 2025. The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView Featured image created by DALL-E, chart from TradingView