Crypto analyst Scott Melker believes Bitcoin could surge to $250,000 by the end of 2025, driven by institutional demand and a maturing market structure. Melker, who hosts The Wolf of All Streets podcast, shared his outlook in a recent interview, pointing to reduced volatility and deeper integration with traditional finance as key catalysts for the next major rally.

“$250K this year is totally possible,” Melker stated, emphasizing that Bitcoin’s volatility has significantly decreased. “It used to be about three times as volatile as the S&P. Now it’s less than two times.”

Melker attributes the shift to increased involvement from pension funds and exchange-traded fund (ETF) issuers, noting that long-term investors are replacing short-term speculators. According to him, the arrival of institutional players has changed Bitcoin’s profile from a high-risk asset to a potential portfolio cornerstone.

Signs of renewed strength have already emerged. In May, Bitcoin climbed above $104,000, while Ethereum moved past $2,600. The rally was accompanied by gains in smaller-cap altcoins, indicating new capital entering the market. Additionally, Coinbase’s addition to the S&P 500 further underscored the growing legitimacy of crypto assets in traditional finance.

Despite the optimistic forecast, Melker acknowledged that some analysts are more conservative, predicting a Bitcoin peak between $120,000 and $150,000. However, he emphasized that Bitcoin’s history is filled with unpredictable upside moves. “From the 2020 lows to the last peak, Bitcoin went from $3,000 to $69,000,” he said. “A 2.5x move from here wouldn’t be a big deal.”

Meanwhile, Adam Back, CEO of Blockstream, offered an even more aggressive forecast. Back believes that Bitcoin is significantly undervalued and could reach between $500,000 and $1 million per coin during the current cycle, citing the surge in institutional interest and major developments in the crypto landscape.

Michael Saylor, the founder of Strategy, echoed these sentiments, noting that Bitcoin’s recent price stagnation below $150,000 can be attributed to short-term holders exiting the market. He added that Bitcoin is now finding its way into the hands of institutions and long-term investors, particularly through spot Bitcoin ETFs and corporate treasury strategies.