As we enter 2025, Bitcoin $96,525.2It becomes important to take a measured and analytical approach on the future of . By considering on-chain data, market cycles, macroeconomic indicators and more, it is possible to paint a data-driven picture beyond mere speculation.
MVRV Z-Score: Upside Potential Grows
MVRV Z-Score measures the ratio between Bitcoin’s realized price and market cap. This ratio is standardized for volatility, providing a clear picture of market cycles. Currently, the MVRV Z-Score indicates significant upside potential.
Pi Loop Oscillator: Bullish Trend Reviving
The Pi Loop Oscillator tracks the 111-day and 350-day moving averages. The intersection of these averages usually signals a top in Bitcoin price. Currently, these moving averages are trending upwards, suggesting that Bitcoin is entering a strong growth phase.
Future of Bitcoin
Looking at the historical price movements of Bitcoin, after the “cooling off after halving” period is passed in each cycle, the exponential growth phase is entered. Based on previous cycles, we are approaching this tipping point. During this period, Bitcoin can achieve significant gains.
Macroeconomic factors also support Bitcoin in 2025. Despite the strengthening of the US Dollar Index, Bitcoin is performing strongly during this period. Since Bitcoin and DXY often move in opposite directions, a reversal in the strength of DXY could further increase Bitcoin’s value.
Other macroeconomic indicators, high-yield credit cycles and global M2 money supply, also reveal positive conditions for Bitcoin. The contraction in money supply seen in 2024 is expected to reverse in 2025, which heralds a more favorable environment.
The Bitcoin Cycle Master Chart combines various on-chain valuation metrics to show that Bitcoin has the potential to grow further before becoming overvalued. The current upper limit of approximately $190,000 supports the expectation of a sustainable rise.
Nearly all of Bitcoin’s data points for 2025 appear aligned for a bull market. It should be noted that past performance does not guarantee the future. However, current data suggests that Bitcoin’s best days may be yet to come.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
