Institutional Adoption and Declining Volatility Create Perfect Conditions
Renowned crypto analyst Scott Melker, host of the popular The Wolf of All Streets podcast, believes Bitcoin could reach $250,000 by the end of 2025. In a recent interview, the expert pointed to growing institutional interest and declining volatility as key factors that could trigger the next wave of growth for the first cryptocurrency. According to him, reaching such a price point is “totally possible” this year, given the fundamental changes in market structure and characteristics of the asset itself.
Declining Volatility as a Sign of Market Maturity
One of Melker’s key arguments supporting his forecast is the significant reduction in Bitcoin’s volatility in recent years. “It used to be about three times as volatile as the S&P. Now it’s less than two times,” the analyst noted, attributing this change to increased participation from pension funds and ETF issuers in the market.
Indeed, statistics confirm Melker’s observations. According to data from the analytical platform CryptoCompare, Bitcoin’s 30-day volatility has decreased from more than 100% during peak periods in 2017 and 2021 to around 40-50% in 2025. This is still significantly higher than traditional assets but demonstrates a trend toward stabilization.
“The process of declining volatility is a natural evolutionary path for any financial asset,” explains Maria Stankevich, financial analyst at Exante. “We’ve observed similar patterns with gold and other commodity assets in the past. As market capitalization grows and the institutional investor base expands, Bitcoin’s volatility will continue to decrease, making it more attractive to conservative players.”
Melker also emphasizes the direct relationship between institutional participation and the reduction in price fluctuations: “The more institutional money, the more Wall Street money, the more long-term holders get involved, the less volatility there’s going to be.”
Institutional Integration of Cryptocurrencies into Traditional Finance
A landmark event for the crypto industry was Coinbase’s inclusion in the S&P 500 index. Melker notes that the company not only entered the index but immediately ranked in the top 50 by market capitalization—a fact that reflects how deeply some crypto firms have integrated into mainstream finance.
Besides Coinbase, companies like Galaxy Digital and eToro have moved forward with public listings, signaling confidence in regulatory conditions under the current US administration. Melker believes that this environment, bolstered by withdrawn SEC lawsuits and favorable executive orders, has created what he calls “an extremely bullish” backdrop for the sector.
“We’ve seen a substantial shift in how cryptocurrencies are perceived by regulators and traditional financial institutions over the past 12-18 months,” comments Alex Tapscott, author of “Financial Services Revolution.” “The market has moved from hostility and skepticism to constructive dialogue and integration. The introduction of spot Bitcoin ETFs became a watershed moment, after which even the most conservative financial advisors began considering cryptocurrencies as a legitimate asset class.”
Market Activity Shows Signs of Strength
Market activity in 2025 has already shown signs of strength. Bitcoin surpassed $104,000, while Ethereum reclaimed levels above $2,600. These price levels not only represent new all-time highs but also reflect sustainable growth, unlike the speculative jumps of the past.
Particularly noteworthy is that recent price action saw Ethereum outpace Bitcoin, triggering a rally across smaller-cap tokens. According to Melker, this is a sign that “new money” is entering the space rather than just rotating within existing assets.
“When we see Ethereum and altcoins starting to move independently of Bitcoin and sometimes outperform it, this usually indicates a deeper bull market,” explains John Tedesco, senior analyst at Messari. “It suggests that investors are seeking higher returns and believe in the long-term viability of the ecosystem beyond just Bitcoin.”
Historical Context and Comparison of Forecasts
Despite the optimism, Melker tempered expectations, noting that most experts are forecasting cycle highs between $120,000 and $150,000. Nevertheless, he emphasized that wild surges are not out of the ordinary in cryptocurrencies.
“From the 2020 lows to the last bull market, Bitcoin went from $3,000 to $69,000. A 2.5x from here wouldn’t be a big deal,” Melker noted, pointing to the historical perspective that makes the $250,000 target quite achievable.
Interestingly, other analysts have independently arrived at similar forecasts. On May 16, the analytical X account Apsk32 argued that Bitcoin has a “decent chance” of hitting $250,000 or more in 2025. On April 28, Peter Chung, head of research at quantitative trading firm Presto, also repeated his prediction that Bitcoin will reach $210,000 by the end of 2025.
Analysts from Standard Chartered and Intellectia AI said on April 22 that institutional Bitcoin demand from exchange-traded funds and traders seeking to hedge against macroeconomic risk could cause Bitcoin’s price to more than double this year.
Factors That Could Support Growth to $250,000
Analyzing the factors that could support growth to $250,000, several key points stand out:
- Inflow of institutional investments through ETFs: Since the launch of spot Bitcoin ETFs in January 2025, they have received more than $50 billion, and the pace of inflows continues to accelerate.
- Macroeconomic conditions: Global economic uncertainty, inflationary risks, and dedollarization in several countries create a favorable environment for alternative stores of value.
- Technological improvements: The development of L2 solutions, such as the Lightning Network, and the growth of the Ordinals ecosystem have significantly expanded Bitcoin’s functionality.
- Regulatory clarity: New regulatory frameworks in the US and other key jurisdictions have reduced legal uncertainty around crypto assets.
- Reduction in available supply: Active accumulation of bitcoins by companies like MicroStrategy and other corporate holders creates a supply deficit in the market.
“The combination of limited supply with growing institutional demand creates a classic scenario for a price surge,” explains David Gerard, economist and author of “Attack of the 50-Foot Blockchain.” “When we talk about Bitcoin, we need to remember that its market capitalization is still only about 2% of gold. Even a relatively small reallocation of global portfolios can cause a significant price effect.”
Conclusion: Is Reaching $250,000 Possible?
In summary, Scott Melker’s prediction of Bitcoin growing to $250,000 by the end of 2025, while ambitious, is based on a number of objective factors: declining volatility, growing institutional participation, a favorable regulatory environment, and historical precedents of significant growth.
“In the world of cryptocurrencies, we’ve learned to never say ‘impossible’,” Melker concludes. “The market has repeatedly proven that it can exceed even the most optimistic forecasts.”
Considering that Bitcoin’s price has already increased more than 5 times from the lows of late 2022, further growth of 2.5 times from current levels, while representing a significant movement, is not beyond the historical patterns of this asset class. Nevertheless, investors should remember the inherent volatility and risks of the crypto market, even despite signs of its maturation.
Ultimately, whether the $250,000 mark is reached or not, the growth of institutional participation and market stabilization will likely continue to strengthen Bitcoin’s position as a legitimate asset class in the eyes of financial mainstream.