In a recent interview, Melker pointed out that Bitcoin’s volatility has significantly declined in recent years. “It used to be about three times more volatile than the S&P 500; now it’s below twice that,” he said, emphasizing that one of the main reasons behind this is the growing interest from pension funds and ETF issuers.

Volatility Decreases as Institutional Money Flows In

According to Melker, capital entering from traditional finance makes Bitcoin not only a more stable asset but also reduces volatility as the number of long-term investors increases. “As Wall Street money flows in, volatility decreases. This opens the door to stronger and more sustainable price movements,” he said.

As of 2025, the market has already started showing strong signals. Bitcoin has surpassed $104,000, while Ethereum reclaimed the $2,600 level.

Meanwhile, the inclusion of Coinbase in the S&P 500 index is seen as a major milestone in the integration of crypto into traditional finance. Moreover, Coinbase not only entered the list but also ranked within the top 50 by market cap.

Investor Confidence Is Growing

The public listing processes of companies like Galaxy Digital and eToro also indicate that the regulatory environment under the current U.S. administration has become more favorable for investors.

Melker noted that dropped SEC lawsuits and positive executive decisions have created what he calls an “extremely bullish atmosphere” in the crypto market.

Altcoin Shift Has Begun

Although Bitcoin remains the main focus, the analyst also observed liveliness in the altcoin market. Ethereum’s recent surge triggered activity in smaller-cap coins as well. Melker argued this is a sign of new money entering the market, not just internal rotation between assets.

A Rapid Climb Wouldn’t Be a Surprise

While Melker shared the $250,000 prediction, he also mentioned that most market expectations are in the $120K to $150K range. However, he added that unexpected surges are nothing unusual in crypto:

“From the lows of 2020 to the last bull run, Bitcoin went from $3,000 to $69,000. A 2.5x increase from here wouldn’t be surprising at all.”

Similar Predictions from Other Analysts

On May 16, an analysis account named Apsk32 on platform X argued that Bitcoin has a high chance of reaching $250,000 or more in 2025.

On April 28, Peter Chung, head of research at quantitative trading firm Presto, once again stated that Bitcoin could hit $210,000 by year-end.

And on April 22, analysts from Standard Chartered and Intellectia AI projected that demand from ETFs and investors looking to hedge against macroeconomic risks could lead Bitcoin to more than double in price this year.

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The post Could Bitcoin Reach $250K in 2025? Analysts Weigh In appeared first on Coin Engineer.