Despite retreating to around US$121,000 on Tuesday (October 7), Bitcoin on-chain data and a rising relative strength index still indicate strong momentum and accumulation, with resistance near US$135,000 and support around US$113,300. Analysts believe the crypto market is transitioning from a speculative phase to a “maturity phase,” where institutional strategies and asset allocation will drive price discovery rather than retail hype.
A new report from CF Benchmarks forecasts that Bitcoin could climb another 20 percent to reach US$148,500 by the end of 2025, while the number of crypto exchange-traded funds (ETFs) is expected to double to 80.
The report also projects that stablecoins could hit US$500 billion in circulation.
Various macro factors are shaping this bullish narrative for the sector. Market uncertainty tied to US President Donald Trump’s economic and fiscal policies, his ongoing tension with the Federal Reserve and uncertainty surrounding the ongoing government shutdown have spurred what analysts describe as a “debasement trade.” Investors seeking protection from currency risk are turning to traditional hedges like gold, and increasingly to Bitcoin.
The Fed’s recent interest rate cut has provided additional support for risk assets. CF Benchmarks expects two more reductions by the end of the year, bringing rates closer to the 3.25 percent level.
Despite inflation concerns, analysts argue that Bitcoin remains undervalued, sitting at the lower end of its estimated fair-value range between US$85,000 and US$212,000. According to trader Ted Pillows, if Bitcoin manages to hold the US$120,000 area, it could mark the beginning of a reversal phase and signal renewed bullish momentum.
By Wednesday afternoon, Bitcoin had steadied near US$123,400, recovering some losses, with ETF inflows continuing to boost institutional confidence. The total market cap of cryptocurrencies currently stands at around US$4.3 trillion, per CoinGecko, while the circulating value of stablecoins has already surpassed $300 billion.
Ether (ETH) also slid after last week’s rally, but has since recovered some of its losses. It was up by 0.7 percent over 24 hours to US$4,518.05. Ether’s lowest valuation on Wednesday was US$4,441.20, and its highest was US$4,544.36.
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