There is a possibility that Bitcoin could soar to over $250,000 before the year concludes, with the anticipated growth in fiat supply serving as a prominent driver for the pioneering cryptocurrency.
The anticipated price surge of Bitcoin (BTC) in 2025 may be further fueled by the US Federal Reserve’s shift towards quantitative easing (QE), which involves the Fed purchasing bonds and injecting liquidity into the economy to lower interest rates and stimulate spending during challenging economic times.
“Bitcoin’s price movements are fundamentally based on market expectations regarding future fiat supply,” noted one prominent crypto analyst.
The analyst expressed in a recent online post:
“If my assessment of the Fed’s significant shift from quantitative tightening (QT) to QE regarding treasuries is accurate, Bitcoin reached a local low of $76,500 last month, and we are now on the path toward $250,000 by year’s end.”
The Federal Reserve has decreased the Treasury’s runoff limit from $25 billion to $5 billion per month as of April 1, while maintaining the mortgage-backed securities (MBS) runoff at $35 billion.
According to comments from the Fed Chair, the central bank might permit the MBS roll-off without replacement, with the extra principal payments potentially reinvested in Treasuries.
“This mathematically keeps the Fed’s balance sheet stable; however, it equates to treasury QE. Bitcoin is likely to surge significantly once this is officially confirmed,” the analyst added.
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Other experts are projecting a more conservative peak for Bitcoin prices, influenced by BTC’s correlation with the global liquidity index.
BTC projected to reach $132,000 based on M2 money supply trends. Source: Jamie Coutts
An expanding money supply might drive Bitcoin’s price beyond $132,000 before the end of 2025, according to projections from a leading crypto analyst.
Related: Bitcoin ‘more likely’ to reach $110K before returning to $76.5K — Analyst
Fed set to “flood the market with dollars”
This analyst has been “acquiring Bitcoin and alternativecoins at all price points between $90,000 and $76,500,” demonstrating strong belief in the crypto market for 2025. The rate of investment will be adjusted based on the accuracy of his forecasts.
“I still maintain that Bitcoin could reach $250,000 by year-end, particularly now that the Fed appears to have changed its stance,” the analyst stated, adding:
“This allows Xi Jinping to direct the People’s Bank of China to ease monetary conditions domestically, which increases the net supply of yuan.”
Despite this upbeat outlook, many market players are wagering on a lower Bitcoin peak by the end of 2025.
Source: Predictions Market
Only 9% of traders are betting on Bitcoin reaching $250,000, while 60% anticipate it will hit $110,000 in 2025, as reported by a significant decentralized prediction market.
Nonetheless, Bitcoin and the general risk appetite face pressure from global tariff anxieties ahead of upcoming tariff announcements.
“Long-term positioning is sound, but immediate momentum is likely linked to emerging macroeconomic developments,” a digital asset investment platform editor remarked.
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