- Bitcoin hits $111,000, boosted by spot ETF inflows and post-halving supply reduction.
- Analysts project $113,000 by June 2025, driven by rate cut expectations and inflation.
- Market momentum faces risks from dollar strength, geopolitics, and regulatory shifts.
As Bitcoin crossed the $111,000 mark, reaching a new all-time high at $111,825, Bitget Research, through its chief analyst Ryan Lee, offers critical insights into the drivers behind the surge and what might lie ahead. Lee pinpoints rising demand from spot Bitcoin exchange-traded funds and a tightening supply following the recent halving as primary catalysts.
Analyst says the rally could continue, with a $113,000 target projected by June 2025. While short-term growth remains possible, experts warn of potential setbacks due to market volatility and external risks.
As of this press time, Bitcoin trades at $110,730, after briefly cooling off from the rally to $111,825 early today. It has now seen an impressive 26% rise in the past month.
ETF Demand and Halving Impact Reshaping BTC Trajectory, Says Bitget Research
The surge in Bitcoin’s value is led by rising interest from institutional investors. Spot Bitcoin ETFs have seen consistent inflows since their launch, with investors seeking regulated exposure to the digital asset. Total inflow into Bitcoin ETF has surpassed $43.7 billion. U.S. Bitcoin ETFs record inflows of over $600 million in the last 24 hours.
Ryan Lee, chief analyst at Bitget Research, said that the demand for ETFs is tightening the market supply. “The post-halving supply crunch, combined with strong ETF demand, is reshaping Bitcoin’s price trajectory,” Lee stated.
April 2024’s halving event reduced mining rewards by 50%, limiting new Bitcoin entering circulation. With high demand, the resulting supply-demand imbalance has contributed to upward price pressure.
Macroeconomic Tailwinds Support Bitcoin
Beyond market mechanics, broader economic conditions are also bolstering Bitcoin. Expectations of interest rate cuts by the Federal Reserve and ongoing inflation have increased the appeal of Bitcoin as a hedge against currency debasement. “Many investors are watching for a move to $113,000 by June 2025,” Lee noted.
Related: Bitcoin Realized Cap Nears $1 Trillion as Institutional Demand Surges
Despite its current strength, Lee noted that Bitcoin’s price remains vulnerable. He mentioned that a stronger U.S. dollar, renewed geopolitical tensions, or negative regulatory developments could stall or reverse gains.
Lee also mentioned that Bitcoin’s history of sharp corrections following rapid rallies has left some market participants cautious. Meanwhile, regulatory developments will also be crucial.
However, Lee believes the advancement of the GENIUS Act in the U.S. could influence investor confidence and institutional participation in the months ahead.
Related: Bitcoin (BTC) Price Prediction for May 23: Will Bulls Reclaim Momentum Above $111K?
Meanwhile, veteran trader Peter Brandt expressed optimism about Bitcoin’s recent rally, calling new all-time highs a normal part of bull markets. In a post on X, Brandt said he remains long on Bitcoin and suggested it could reach $125,000 to $150,000 by the end of August 2025.
He downplayed the technical significance of ATHs, noting that bull markets naturally produce them. A chart shared in his post highlights bullish patterns, including a bull flag and double top retest, pointing to continued upward momentum.
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