Bitcoin (BTC) Price Prediction & Analysis: Trading at $88k, $132,000 by Year-End?

TLDR

Bitcoin price briefly surpassed $87,700 and is currently steady at around $88,194 Arthur Hayes predicts BTC could exceed $100K due to U.S. Treasury buybacks and weakening dollar Michael Saylor’s Strategy purchased 6,556 more Bitcoin for $555.8 million Analysts including Jamie Coutts forecast BTC could reach $132,000 by year-end Trump’s criticism of Federal Reserve Chair Powell has increased expectations of a potential rate cut

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Bitcoin has shown remarkable strength in recent days, briefly surpassing $87,700 before settling at around $88,194. This upward movement comes amid a weakening U.S. dollar and increasing institutional interest in the cryptocurrency.

Michael Saylor’s Strategy has once again made headlines by purchasing an additional 6,556 Bitcoin for approximately $555.8 million, according to a filing released on Monday. This latest acquisition brings the company’s total Bitcoin holdings to an impressive 538,200 coins.

The purchase was funded through stock offerings, a method that Strategy has consistently used to expand its cryptocurrency holdings. As the world’s largest corporate holder of Bitcoin, Strategy’s continued investment signals ongoing confidence in Bitcoin’s long-term potential.

Bitcoin (BTC) Price

Market Conditions Supporting Bitcoin’s Rise

Bitcoin’s recent price surge has been supported by several macroeconomic factors. The U.S. dollar has reached its lowest point since March 2022, making Bitcoin more attractive to investors seeking an alternative store of value.

There is also a growing correlation between Bitcoin and gold, which has risen nearly 30% this year. Ryan Lee, Chief Analyst at Bitget Research, pointed out that a “descending wedge breakout” in Bitcoin’s technical chart supports a bullish outlook.

Arthur Hayes, co-founder of BitMEX and CIO of Maelstrom, has made a bold prediction about Bitcoin’s future. He suggests this could be the “last chance” to purchase Bitcoin for less than $100,000.

Hayes attributes this potential price surge to U.S. Treasury buybacks, which he describes as a “bazooka” for Bitcoin’s price. These buybacks may inject more liquidity into the market, potentially pushing Bitcoin well beyond the $100,000 barrier.

Analyst Predictions and Technical Outlook

Several analysts have shared optimistic price targets for Bitcoin. Jamie Coutts from Real Vision forecasts that the cryptocurrency could climb as high as $132,000 by the end of the year, driven by expanding fiat money supply (M2).

This projection aligns with predictions from economist Timothy Peterson, who suggests Bitcoin could reach $138,000 within three months, based on similar market patterns observed in the past.

Despite the overall positive sentiment, some analysts remain cautious. Michaël van de Poppe warned that weekend price rallies can sometimes be misleading and that Bitcoin may experience a dip before breaking through major resistance levels.

The next key resistance level is seen around $91,000. Until this level is surpassed, short-term price corrections may still occur in the market.

Political Climate and Its Impact

The current political environment is adding another layer to Bitcoin’s price dynamics. President Donald Trump’s criticism of Federal Reserve Chair Jerome Powell has intensified, with Trump calling for Powell to “preemptively” lower interest rates.

Trump has suggested that failure to cut rates could risk damaging economic growth. These comments have increased speculation about a potential rate cut, which could further weaken the dollar and benefit Bitcoin’s rally.

Reports indicate that Trump may be seeking a way to remove Powell before his term ends in May 2026. Powell has maintained that the Fed will not cut interest rates soon and that he plans to serve his full term.

Global institutional interest in Bitcoin remains strong despite recent market volatility. Investment firms from Japan and the United Kingdom continue to invest in the cryptocurrency, demonstrating trust in its future prospects.

While Bitcoin has shown strength, other cryptocurrencies have experienced mixed performance. Ethereum fell nearly 4% to $1,584.52, and XRP dropped 2.4% to $2.0790. Solana and Cardano also declined, while Polygon rose nearly 7%.

Bitcoin is still down 5.6% so far in 2025, as market sentiment has been affected by uncertainty surrounding Trump’s policies and the ongoing trade tensions between the United States and China.

The convergence of weakening fiat currencies, rising institutional support, and potential Treasury buybacks creates a favorable environment for Bitcoin’s price to continue its upward trajectory toward $100,000 and beyond.

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