In a recent discussion, Melker pointed towards the rising interest from institutional investors and the decreasing volatility of Bitcoin as key elements that could fuel the next significant surge.

“Bitcoin could absolutely hit 250K this year,” stated Melker, highlighting the significant reduction in Bitcoin’s volatility over recent years. “It used to have triple the volatility of the S&P. Now, it’s less than double.”

Melker referred to the growing engagement from pension funds and ETF issuers as an indication of a more mature and stable market. This shift, he argues, mirrors a larger trend of institutional adoption. “The more institutional and Wall Street money that gets involved, and the more long-term holders that participate, the lower the volatility will be,” Melker clarified.

Looking ahead to 2025, the crypto markets have already displayed strong signs. Bitcoin has soared past $104,000, while Ether (ETH) has regained footing above $2,600. Melker emphasized that Coinbase’s inclusion into the S&P 500 is a significant step forward for crypto’s integration with mainstream finance.

In addition to Coinbase, companies like Galaxy Digital and eToro have progressed with public listings, suggesting confidence in the current regulatory environment under the existing US administration. Melker believes that this favorable backdrop has fostered an “extremely bullish” environment for the sector.

Although Bitcoin remains the primary focus, Melker acknowledged a resurgence in interest in altcoins. The recent price fluctuations saw Ethereum outpace Bitcoin, sparking a rally across smaller-cap tokens — a sign of “new money” entering the market.

Despite his optimism, Melker cautioned against unchecked expectations, noting that most experts predict cycle highs between $120,000 and $150,000. Nevertheless, he emphasized that dramatic surges are not unusual in the crypto world.

Various analytics accounts and trading firms have also echoed Melker’s sentiments, predicting a significant increase in Bitcoin’s value by 2025. This comes as institutional Bitcoin demand from exchange-traded funds and traders seeking to hedge against macroeconomic risk continues to grow.

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