- Bitcoin reached a new all-time high of US$107,780, currently trading at US$105,791 with a market cap of US$2.09 trillion.
- Analysts predict a continued surge in 2025, with Bitcoin possibly reaching US$145,000 to US$200,000.
- Despite the uncertain traditional Santa Rally in crypto, smaller layer-1 cryptocurrencies may outperform Bitcoin and Ethereum.
- US ETFs continue to support Bitcoin’s growth, with significant net inflows and holdings reaching 5.383% of all Bitcoin
With Bitcoin making new all-time highs at US$107,780 (AU$169,178) only a few hours ago, investors are wondering if we will soon see a Santa rally or if things are slowing down over Christmas and what 2025 might bring.
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At the time of writing BTC trades for US$105,791 (AU$166,057) and has reached a market cap of US$2.09 trillion (AU$3.28 trillion) putting Bitcoin in seventh spot by market cap globally, just behind Alphabet (Google).
Expect Volatility in 2025, Say Analysts
According to analysts at Bitfinex, 2025 could see a continuation of the current price surge. The analysts predict that any correction could be short-lived and mild.
Their minimum price target for Bitcoin is US$145,000 (AU$227,703) by the middle of 2025 and US$200,000 (AU$314,073) in “favourable conditions”.
Overall, the Bitfinex analysts believe 2025 should be a positive year for Bitcoin, crypto and the equity market, due to the Trump trade.
In sum, 2025 presents a cautiously optimistic economic environment marked by steady growth, persistent structural challenges, and strategic policy adjustments. While normalisation across sectors offers stability, external risks and inflationary pressures will remain critical considerations for sustained momentum.
BitfinexAdditionally, a Kaiko analysis suggests a cautious outlook on a potential Santa Rally, emphasising that while a traditional end-of-year rally seen in equities might not directly apply to cryptocurrencies, there is still a chance for movement.
Kaiko notes that Bitcoin’s correlation with the S&P 500 has weakened, and crypto’s 24/7 trading nature makes its behaviour unpredictable.
While the chances of BTC gaining another $15k in the next ten days or so are slim, this doesn’t mean there won’t be gains in other assets.
KaikoTheir analysis points toward smaller layer-1s outperforming BTC and ETH, despite “BTC ETFs driving price discovery”.
US ETFs See Another US$2-Billion Trading Week
Meanwhile, the US Spot exchange-traded funds (ETFs) continue to be a driving force behind Bitcoin’s growth – that and Michael Saylor’s MicroStrategy continuing to buy BTC at unprecedented levels.
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Last week the US ETFs saw a combined US$2.16 billion (AU$3.39 billion) in net inflows, in one of the stronger trading weeks to date. The BiTBO flows tracker shows strong interest in these ETFs, with inflows by far outperforming outflows.
The US ETFs now hold 5.383% of all 21 million Bitcoin, with BlackRock’s iShares Bitcoin Trust (IBIT) holding 539,020 BTC or 2.567% of the total.
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