What Drives Bitcoin's Price
At its core, Bitcoin’s price is determined by supply and demand, but it does not exist in isolation.
Institutional adoption, regulatory shifts, and macroeconomic conditions all influence its valuation.
Liquidity cycles, interest rate policies, and financial instability can drive demand as people seek a hedge against fiat debasement.
Market sentiment, media coverage, regulations and public perception also contribute to short-term volatility, often amplifying price movements.
Volatility, A Feature, Not A Bug
Bitcoin’s price swings are a function of its monetization process. Historically, major surges have followed the halving cycles,
which occur roughly every four years, reducing the issuance of new bitcoin and triggering supply shocks.
The most volatile trading day recorded occurred on March 13, 2020, when Bitcoin’s price deviated by nearly 12% within an hour amid global market panic.
What’s not spoken about often enough, is that the bitcoin price recovered on its own without any intervention, which is in contrast to the stock market
which was halted three times on the same day. Bitcoin is the purest and perhaps only representation of the free market.
Although some decry volatility, these periods of extreme price movement attract new participants, many of whom stay once they recognize Bitcoin’s broader implications.
Far from being a weakness, volatility fuels adoption by exposing more people to a monetary system that operates outside traditional constraints.
Bitcoin Price Predictions
There are many reasons to be bullish in 2025. It’s year two of Bitcoin’s four-year cycle, a phase that has historically been the strongest in terms of price appreciation.
Institutional adoption continues to accelerate, macroeconomic conditions favor hard assets, and Bitcoin is more integrated into global financial markets than ever before.
The political landscape in the United States is shifting in Bitcoin’s favor. The new administration, led by President Donald Trump, has shown a markedly different stance
compared to its predecessor. Rather than hostility toward Bitcoin, the current administration includes figures with deep knowledge and vested interest in its success,
such as Howard Lutnick, Elon Musk, Vivek Ramaswamy, and RFK Jr. This represents a significant reversal from previous regulatory crackdowns and could pave the way for greater Bitcoin adoption and integration into traditional finance.
Institutional demand continues to grow, with an increasing number of Bitcoin ETFs gaining approval worldwide, from the United States to Europe to Hong Kong.
Spot Bitcoin ETFs have already absorbed billions in capital, opening the asset to a broader investor base. More approvals, particularly in Asia, could further drive demand.
Meanwhile, central banks once again appear to be preparing to inject liquidity into global markets.
Historical liquidity cycles have played a—if not the—major role in Bitcoin’s price action, and with mounting fiscal pressures, many expect a return to more accommodative monetary policies.
If central banks pivot back toward lower interest rates or quantitative easing, Bitcoin could stand to benefit as capital seeks refuge in scarce assets.
Predictions From Industry Insiders
ARK Investment Management CEO Cathie Wood has always been a Bitcoin bull and predicts it will reach $1 million per coin by 2030.
American investor and Founder, CEO & CIO of Morgan Creek Capital Mark Yusko is a former Bitcoin skeptic who now predicts a $500,000 price for the digital coin in 2030.
The hedge fund manager believes Bitcoin is on track to replace gold, primarily due to its superior divisibility and portability.
Peter Brandt, a veteran trader with a track record of accurate Bitcoin calls, projects the cryptocurrency will trade between $120,000 and $200,000 by September 2025,
citing historical price cycles and supply dynamics.
Hal Finney, one of Bitcoin’s earliest adopters and developers, speculated that if Bitcoin became the dominant global financial system,
its price could skyrocket to $22 million per coin by 2045.
Jurrien Timmer, Director of Global Macro at Fidelity Investments, has modeled Bitcoin’s trajectory using historical adoption trends and predicts it could reach $1 billion per coin by 2038,
assuming continued network growth and scarcity dynamics.
Chamath Palihapitiya, billionaire investor and former Facebook executive and SPAC evangelist, envisions Bitcoin climbing to $500,000 by 2025,
eventually surpassing $1 million per coin by 2040-2042 as it continues to absorb capital from traditional assets.
PlanB, the pseudonymous creator of the Stock-to-Flow (S2F) model, forecasts that Bitcoin could reach $250,000 to $1 million during the current bull market cycle,
based on the asset's increasing scarcity and historical price patterns.
Sina Golara, co-founder and COO of 21st Capital, utilizes a quantile regression model to predict that Bitcoin will trade between $136,000 and $285,000 by the end of 2025,
highlighting distinct market phases and advising cautious accumulation strategies.
Giovanni Santostasi, a physicist and researcher, applies the Power Law Theory to Bitcoin's price trajectory, suggesting that Bitcoin could reach $1 million between 2028 and 2037,
with a potential peak of around $210,000 by January 2026.
Peter Schiff, the ever-persistent gold bug and professional Bitcoin doomsayer, still insists that Bitcoin is destined for zero—a prediction he’s been confidently making since it was under $100.
Despite Bitcoin’s continued adoption, trillion-dollar market cap, and resilience through multiple boom-bust cycles, Schiff remains convinced it’s all a house of cards.