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Bitcoin’s Bullish Horizon: Surging Beyond $200K in 2025 Amid U.S. Fiscal Instability

Bitcoin’s Bullish Horizon: Surging Beyond $200K in 2025 Amid U.S. Fiscal Instability

Published:
2025-06-24 05:21:12
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Bitwise analysts have projected a staggering surge for Bitcoin, potentially exceeding $200,000 by 2025, driven primarily by escalating fiscal turmoil in the United States. According to their report, the Congressional Budget Office anticipates net interest payments on federal debt to triple, reaching $3 trillion by 2030. This fiscal chaos, Bitwise argues, is the exact scenario Bitcoin was designed to navigate, highlighting its resilience amidst political and economic volatility. As of June 2025, this prediction underscores Bitcoin's growing role as a hedge against systemic financial instability, reinforcing its appeal to investors seeking alternatives to traditional assets.

Bitwise Predicts Bitcoin Could Surge Beyond $200K in 2025 Amid U.S. Fiscal Turmoil

Bitwise analysts project bitcoin could surpass $200,000 by 2025, citing escalating U.S. fiscal instability as the primary catalyst. The Congressional Budget Office forecasts net interest payments on federal debt will triple to $3 trillion by 2030, creating what Bitwise describes as "precisely the kind of chaos Bitcoin was built for."

The report highlights Bitcoin's resilience amid political volatility, noting a 6% price dip during recent clashes between Elon Musk and Donald TRUMP over tax policy. At press time, Bitcoin trades at $109,000, with Bitwise emphasizing its scarcity as a hedge against dollar debasement.

Bitcoin's Volatility and Macro Correlations Amid Tariff Speculations

Bitcoin's price action continues to mirror the frenetic energy of Big Tech stocks, with its correlation to the Nasdaq Composite now at 0.81. The cryptocurrency briefly approached its all-time high before retreating to $108,600, down 1.4% over 24 hours. This pattern echoes its behavior three weeks prior, when it surged from $103,000 to $110,000 in 48 hours.

Market analysts attribute the recent volatility to Leveraged short positions being liquidated rather than new spot demand. The 'digital gold' narrative falters as bitcoin's correlation with gold turns negative (-0.07), while its sensitivity to macroeconomic forces remains pronounced. All eyes now watch whether geopolitical tensions, including potential tariffs, could accelerate bitcoin's decoupling from traditional assets.

ARK Invest Maintains Bitcoin Bullish Stance Amid Record Price Proximity

Cathie Wood's ARK Invest has reinforced its optimistic outlook on Bitcoin as the cryptocurrency nears its all-time high. The firm's May report underscores multiple bullish indicators, including aggregate unrealized gains, robust ETF inflows, and elevated support levels. "Bitcoin has not hit irrational exuberance," the analysis concludes, suggesting room for further upside.

Glassnode data reveals unrealized profits remain just one standard deviation above the mean this cycle—far from the three-deviation threshold that typically signals market euphoria. This metric, combined with sustained institutional demand through ETF channels, paints a compelling picture for Bitcoin's continued ascent. ARK previously projected a $2.4 million price target by 2030, a forecast that now appears less speculative as adoption accelerates.

Michael Saylor Dismisses Quantum Computing Threat to Bitcoin

MicroStrategy co-founder Michael Saylor has downplayed concerns about quantum computing posing an existential threat to Bitcoin. In a Bloomberg interview, Saylor characterized the risk as overblown, suggesting that tech giants like Microsoft and Google would never commercialize quantum technology capable of breaking cryptography—as it would undermine their own security infrastructure.

While recent advancements in quantum error correction have sparked fears about cracking Bitcoin's SHA-256 encryption, Saylor maintains that phishing scams present more immediate dangers to crypto users today. "I don't worry about it," he stated, emphasizing the cryptocurrency community's proven ability to adapt to emerging threats through protocol upgrades.

The comments come after Google researchers suggested quantum computers might eventually break RSA encryption 20x faster than previously estimated. Yet Saylor positions quantum risk as a broader challenge for traditional finance and big tech—not a unique Bitcoin vulnerability—citing the network's track record of cryptographic evolution.

Bitcoin Holds Firm Above $100K Amid Market Volatility

Bitcoin's resilience above the $100,000 psychological threshold signals unwavering investor confidence despite recent price fluctuations. The cryptocurrency briefly dipped to $100,000 before rebounding to $109,500, marking a 4% surge on June 9 and peaking at $110,600 for the week.

On-chain data from Glassnode reveals a market structure strengthened by the downturn. The 9% correction from June 7's all-time high of $111,965 resulted in a mere $200 million in realized losses—far below previous cycles. Capitulation was isolated to recent entrants, with holders of BTC younger than one week accounting for most exits. Notably, long-term holders (3+ months) reported zero loss-taking during the movement.

Derivatives markets saw $2.3 billion in open interest liquidations—the seventh-largest deleveraging event since 2023. The price stabilized above the short-term holder cost basis ($97,600), maintaining cyclical momentum. Historically, 41% of trading days since the 2022 bottom experienced deeper pullbacks.

At peak levels, long-term holders realized $930 million daily profits—matching March's breakout velocity when Bitcoin first surpassed $100,000.

Trump-Backed Mining Firm American Bitcoin Amasses $23.7M in BTC Reserves

American Bitcoin, a cryptocurrency mining company backed by Donald Trump's sons, has accumulated 215 BTC worth approximately $23.7 million at current prices. The firm disclosed its holdings in a June 6 SEC filing, emphasizing Bitcoin accumulation as its Core business strategy rather than a byproduct of operations.

The Trump-affiliated miner joins over 100 public companies holding Bitcoin on their balance sheets, according to Bitcointreasuries.net. American Bitcoin plans to continue growing its BTC reserves based on market conditions, reflecting institutional confidence in the cryptocurrency's long-term value proposition.

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