FameEX Hot Topics | Bitcoin Rally Predicted to Last Until Late 2025

Bitcoin reached a historic milestone on December 6, surpassing $100,000 for the first time. This achievement stands out amid lackluster performance across global assets and a backdrop of declining liquidity. Over the past month, Bitcoin's price surged by 32%, while oil dropped 6.3%, the S&P 500 fell 1%, and gold declined 1%. This sharp contrast highlights Bitcoin’s resilience and increasing investor confidence.

The rally has sparked optimism among analysts, with many predicting the bull market will continue until the end of 2025. This phase, often termed the "euphoria stage" in crypto circles, represents heightened market excitement and significant price momentum. Quinten François, co-founder of WeRate, emphasized this on December 7, stating, “Bitcoin is entering the euphoria stage. You have a maximum of 12 months before the cycle top.” Analysts believe this stage could drive Bitcoin to new heights.

Supporting this outlook is the long-term holder net unrealized profit/loss (NUPL) metric, which measures the difference between unrealized profits and losses among Bitcoin holders. The metric indicates that most holders are in profit, signaling strong market sentiment. According to NUPL, Bitcoin’s rally is likely to persist, with a potential peak before 2025 ends.

James Coutts, chief crypto analyst at Real Vision, noted Bitcoin's remarkable performance despite challenging liquidity conditions. In a December 6 post, he warned that worsening liquidity could limit the rally's duration. Conversely, an easing in liquidity might trigger a short-term pullback, setting the stage for further growth. Coutts highlighted Bitcoin's ability to hit new all-time highs under tough conditions as a testament to its strength.

Looking further ahead, Raoul Pal, founder and CEO of Global Macro Investor, projected that Bitcoin’s correlation with the global M2 liquidity index suggests a “local top” of over $110,000 by January 2025. As liquidity stabilizes, Bitcoin’s trajectory appears set for continued short-term growth, possibly followed by a correction before climbing to new milestones.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.