Bitcoin’s price seems to have finally started to rise strongly over the last few days, breaking through the $100,000 ceiling on Thursday, January 16. The top cryptocurrency didn’t stay above that level for more than a day, the last time it crossed six-figure valuations.

However, Bitcoin price has recovered all the way to $105,000 this time, its highest level so far in 2025. Interestingly, it appears that this may be just the beginning of an even greater rise in Bitcoin’s price over the next 12 months.

Is 2025 the peak year for Bitcoin prices?

In its latest weekly report, blockchain analytics company CryptoQuant revealed its Bitcoin price target in 2025. The on-chain analytics platform sheds airy on the flagship cryptocurrency’s potential trajectory over the course of the year.

CryptoQuant predicted that the price of Bitcoin in the modern year will reach as much as $249,000 – or at least $145,000. This represents a positive annual performance of 45% to 150% for the world’s largest cryptocurrency.

Market intelligence expects Bitcoin price growth to be catalyzed by institutional capital flows in the context of a favorable regulatory environment, accommodative monetary policy in the United States and historical cyclical patterns.

For example, the upcoming inauguration and administration of pro-crypto Donald Trump is expected to result in cryptocurrency-friendly regulators taking office and implementing positive executive actions. Therefore, CryptoQuant predicts an raise in demand for Bitcoin when President Trump returns to the Oval Office.

Source: CryptoQuant

Moreover, bullish macroeconomic conditions are also expected to play a significant role in Bitcoin price developments in 2025. “The Federal Reserve’s anticipated interest rate cuts could create a favorable environment for capital flows into risky assets such as Bitcoin,” the report says .

Additionally, 2025 is the last year in Bitcoin’s 4-year cycle, which has historically been associated with significant price increases. Bitcoin price reached a modern record high of over $67,000 in the last year of the previous cycle.

While this historical perspective suggests that the market leader could reach a modern all-time high this year, it also signals the likelihood of Bitcoin price reaching a peak in 2025. At the time of writing, Bitcoin is trading at around 104,450, reflecting an over 4% raise in during the last day.

How much capital will flow into Bitcoin in 2025?

According to CryptoQuant, around $520 billion could flow into the flagship cryptocurrency this year, especially given favorable regulatory, monetary and cyclical conditions. This projection was calculated based on the realized capitalization metric, which is the sum of the value (in US dollars) of each Bitcoin at the time of its last transfer on the chain.

CryptoQuant noted:

A total of $86 billion flowed into Bitcoin from 2015 to 2018, then $384 billion from 2019 to 2021 and $440 billion from the end of 2022 to 2025. The realized limit grows especially quickly in the last year of each Bitcoin cycle, i.e. in 2017 and 2021. suggesting that Bitcoin could experience similar capital inflows in 2025 year.

The price of BTC on the daily timeframe | Source: BTCUSDT chart on TradingView

Featured image by DALL-E, chart from TradingView