Bitcoin's record-shattering climb past the $125,000-mark last week has set the stage for what analysts describe as the most convincing bull phase since the 2021 boom - one driven not by hype but by deep-pocketed institutional capital, macroeconomic shifts, and growing political support for digital assets.

After briefly consolidating near its new all-time high of around $125,245, Bitcoin remains on firm ground, with momentum building for another upward leg that could take it to $150,000 before the year ends.

The cryptocurrency's ability to sustain gains despite intermittent profit-taking signals a structural evolution - from speculative instrument to a mainstream macro asset with expanding institutional relevance.

Nigel Green, chief executive of deVere Group, believes the current rally reflects a fundamental re-rating of Bitcoin's role in global portfolios.“The price action reflects a deeper structural change in how investors view digital assets,” he said.“Bitcoin is no longer a speculative corner of the market; it's being treated as a legitimate macro instrument. Institutional capital, treasury allocations, and sovereign interest are reshaping the market's depth and maturity.”

The renewed optimism follows a sharp weakening in the US dollar, which has fallen to multi-week lows amid persistent fiscal uncertainty. Investors have been diversifying into alternative stores of value, with Bitcoin increasingly viewed as a hedge against inflation and monetary instability.

“Every time the dollar softens or government data falters, the market is reminded of the value of decentralised, borderless assets,” Green noted.“Bitcoin's appeal strengthens when trust in central authority is questioned - and right now, that trust is under heavy strain.”

The latest uptrend is backed by extraordinary trading activity, with 24-hour volumes exceeding $50 billion and short positions worth more than $200 million liquidated in a single day. Analysts say each corrective dip since midyear has been swiftly met with renewed buying - a clear indication of conviction-driven accumulation rather than short-term speculation.

Peter Eberle, chief investment officer at Castle Funds, expects Bitcoin to“consolidate above $120,000 before advancing toward $160,000–$200,000 by December,” pointing to the robust inflows into spot Bitcoin ETFs and the rising participation of sovereign and pension funds.

Meanwhile, Citigroup's latest forecast pegs a slightly more cautious year-end target of $133,000, though it acknowledges that long-term momentum remains intact as institutional adoption accelerates.

Simon Peters, crypto analyst at eToro, said crypto markets surged to a record $4.24 trillion market cap as weaker US jobs data fuelled expectations of further Federal Reserve rate cuts. Bitcoin hit a new high of $125,736 amid $3.24 billion ETF inflows, with Ethereum also gaining.

Beyond price charts, strategists see a broader shift unfolding. Bitcoin's correlation with major US equity indices has strengthened, underscoring its growing integration into traditional financial markets. Renowned macro analyst Lyn Alden says Bitcoin's limited supply and expanding network effect make it“one of the few assets capable of outperforming both inflationary and deflationary cycles.” She describes the current phase as“fundamental price discovery in a maturing asset class.”

Political tailwinds are also reinforcing sentiment. The Trump administration's renewed emphasis on crypto innovation and US competitiveness in blockchain technology has reignited investor enthusiasm, with Washington's tone now markedly more supportive. Green said that“policy clarity and openness to innovation catalyse institutional confidence - a critical ingredient in sustaining this bull run.”

While risks remain - from potential dollar rebounds to policy reversals - analysts agree that the underlying trend points higher. With global liquidity improving, ETF-driven inflows rising, and long-term holders staying firm, the world's largest digital asset appears to be entering a new, more durable growth phase.

Crypto experts argue that if the current trajectory holds, the next breakout could carry Bitcoin well beyond its latest peak - validating the belief among many in the market that $150,000 is no longer a speculative target, but a matter of timing.

MENAFN07102025000049011007ID1110157691