Bitcoin Smashes Through $120,000 Barrier Today as Bitwise’s BTC Price Prediction Eyes $200,000

Bitcoin (BTC) price broke through the $120,000 threshold for the first time Monday morning, reaching a peak of $122,533 as institutional investors poured money into the world's largest cryptocurrency. The milestone comes as Congress prepares to debate key digital asset legislation this week.

Technical analysis suggests that Bitcoin could rise another 30% in the coming months, while asset manager Bitwise offers an even more bullish forecast, projecting a 70% increase by the end of 2025. Let's take a closer look at what's driving Bitcoin’s rally and what may lie ahead for BTC, including the newest price predictions.

Why Is Bitcoin Going Up Today? BTC Price Hits New All-Time High (ATH)

According to CoinMarketCap data, Bitcoin is currently trading at $122,218, up 3.6% over the past 24 hours, accompanied by a 126% surge in daily trading volume.

The cryptocurrency has gained about 30% since December and is up 29% year-to-date. Bitcoin's latest surge follows months of sideways trading around the $100,000 level, with investors now betting on favorable regulatory developments and continued institutional adoption.

"This shift signals a maturing perspective on Bitcoin - not merely a speculative asset, but a macro hedge and a structurally scarce store of value," said George Mandres, Senior Trader at XBTO Trading LLC.

Bitcoin ETF Inflows Drive Institutional Demand

The rally has been fueled largely by massive inflows into Bitcoin exchange-traded funds. On Thursday alone, Bitcoin ETFs recorded their biggest day of inflows in 2025 at $1.18 billion. Some days have seen ETFs purchase 10,000 Bitcoin while the network only produces 450 new coins daily.

US-based Bitcoin ETFs have now attracted over $50 billion in total inflows since their launch 18 months ago. BlackRock's IBIT fund alone has seen $53 billion in gross inflows, while Fidelity's FBTC ranks second with $12.29 billion.

"There's unrelenting demand from corporations and institutional investors, and that's colliding with severely limited supply," said Matt Hougan, Chief Investment Officer at Bitwise. "This institutional investment into Bitcoin is a one-time event. It's going to take years to play out."

Crypto Week Brings Regulatory Clarity

The timing coincides with what Washington has dubbed "Crypto Week," where lawmakers will debate three major bills: the CLARITY Act for regulatory oversight, the GENIUS Act creating stablecoin rules, and the Anti-CBDC Surveillance State Act.

President Trump, who calls himself the "crypto president," has pushed for crypto-friendly policies since taking office. His administration's Digital Asset Task Force is expected to release a policy report on July 22, potentially including a Strategic Bitcoin Reserve proposal.

"It's riding a number of tailwinds at the moment," said Tony Sycamore, market analyst at IG, citing institutional demand, regulatory support, and Trump's backing.

How High Can Bitcoin Go? Technical Analyst Points To $160K

Based on my technical analysis, Bitcoin has clearly broken through the previous resistance from May, located around $112,000. A new local support zone is now beginning to form, which may support further price discovery. Although analyzing charts in these previously untested price areas is challenging, projections based on Fibonacci extensions have proven helpful.

Bitcoin has already reached the first target suggested by the indicator—around $120,000 (the 61.8% extension level). The next targets are $136,000 (100%) and, ultimately, nearly $160,000 (161.8% Fibonacci extension).

While the market may currently be somewhat overvalued, a potential pullback toward the $110,000–$100,000 range would not invalidate the bullish outlook. From a technical indicator perspective, the setup remains positive, and sentiment continues to be strongly bullish, which could support further price gains.

Only a break below $100,000 and the 200-day EMA, currently positioned around $97,000, could signal a potential trend reversal. And while my forecast is decidedly bullish, it is still more conservative than that of Bitwise’s CIO, who is targeting $200,000 by the end of the year.

Bitcoin Price Prediction 2025: Analysts See Path to $200,000

Several analysts believe Bitcoin's rally has much further to run. Hougan predicts the cryptocurrency "could end the year closer to $200,000", representing a roughly 70% gain from current levels.

“I think it has a long way to go. I think it could end the year closer to $200,000. So I would get used to this story of new all-time highs,” he added.

10x Research has set targets of $140,000 to $160,000 for 2025, while other forecasts suggest Bitcoin could reach $130,000 to $150,000 by year-end.

"Bitcoin's cleared $120,000, but the real test is $125,000," said Rachael Lucas, crypto analyst at BTC Markets. She noted that "the uptrend has fuel" driven by strong ETF demand, with support at $112,000 making any dip "a buying opportunity, not a reversal."

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Macro Factors Support BTC Rally

Beyond regulatory optimism, analysts point to broader economic factors supporting Bitcoin's rise. Markus Thielen from 10x Research argues the rally reflects concerns about US fiscal policy, with Trump's recent legislation potentially adding $2.3 trillion to $5 trillion in federal deficits over the next decade.

"Bitcoin has become a macro asset, a hedge against unchecked deficit spending," Thielen said. "Alongside gold, Bitcoin is now positioned as the primary defense against a looming fiscal crisis."

The broader crypto market has followed Bitcoin higher, with the total market value reaching $3.78 trillion. Ethereum rose 1.5% while XRP and Solana both gained about 2.7%.

However, some analysts remain cautious about the sustainability of the rally. "In my view, this isn't a macro-driven rally, but rather an isolated event," said Nicolai Sondergaard, research analyst at Nansen.

The rally also triggered over $1 billion in liquidations of bearish crypto positions, according to Coinglass data.

Bitcoin Price Analysis FAQ

Why Is Bitcoin Surging Right Now?

Bitcoin's current rally to record highs above $120,000 is driven by several converging factors that have created perfect storm conditions for the cryptocurrency.

Institutional demand has become the primary driver. Bitcoin ETFs are experiencing unprecedented inflows, with some days seeing purchases of 10,000 Bitcoin while the network only produces 450 new coins daily. This supply-demand imbalance is creating persistent upward pressure on prices.

What's Causing Bitcoin to Rise?

The rise stems from Bitcoin's transformation into what analysts call a "structurally scarce store of value." Several specific factors are fueling this transformation: Supply constraints are becoming more apparent as institutional adoption accelerates. With only 450 Bitcoin produced daily and massive ETF inflows, the fundamental supply-demand equation heavily favors price appreciation.

What If I Invested $1,000 in Bitcoin 10 Years Ago?

A $1,000 investment in Bitcoin 10 years ago (July 2015) would have generated extraordinary returns, though exact calculations depend on the specific purchase date. In July 2015, Bitcoin was trading around $280-$300. A $1,000 investment would have purchased approximately 3.3 to 3.6 Bitcoin. At today's price of $120,000, that investment would now be worth approximately $396,000 to $432,000 - representing a return of roughly 39,500% to 43,100%.

How Much Will $1 Bitcoin Be Worth in 2025?

Based on current analyst predictions and market dynamics, Bitcoin could see significant appreciation through the remainder of 2025. Conservative estimates from analysts suggest Bitcoin could reach $130,000 to $150,000 by year-end, representing roughly 8-25% gains from current levels. Aggressive projections are more bullish. Bitwise CIO Matt Hougan believes Bitcoin "could end the year closer to $200,000," which would represent approximately 67% upside from current prices.