Demand is driving the price of Bitcoin to $130K

In any market, whether it is fruit and vegetables or financial assets, prices are determined by the intersection of

For example, in the last days of a crypto winter — like in recent months — typically, we can detect an increase in withdrawals from crypto exchanges and a reduction in balances held in these centralized platforms. Since keeping crypto assets in third-party custody is usually considered more dangerous, this signal is considered bullish since it shows the preference for investors to hold a long Bitcoin position in the long term rather than holding it in a trading account to take advantage of short-term speculative opportunities.

This phenomenon is therefore accompanied by an increase of addresses (withdrawal from a few cumulative cold wallets to fill many single addresses controlled by individual persons) and lays the foundations for a cyclical price appreciation also based on the model described in this article.

Data from this graph and this model indicate the price of Bitcoin could reach its next ceiling in autumn 2025 at $130,000 — and possibly higher.

As always, it is important to note that this forecast is not financial advice. It can only be taken as an expected value based on some assumption with a certain degree of confidence. But similar price growth estimates also emerge from other predictive models. The recent surge of interest in this asset class among institutional players like BlackRock — the largest asset manager in the world, which is seeking approval for a spot Bitcoin exchange-traded fund — may indicate that they place some faith in these models.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.