Bitcoin Enters Euphoria Phase: Analyst Predicts Rally Could Extend Through 2025

Bitcoin surpassed $100,000 for the first time on December 6, marking a huge milestone for the leading cryptocurrency. The achievement comes amid lackluster performance in traditional global assets, showcasing Bitcoin’s resilience and growing appeal.

Over the past month, Bitcoin’s price surged by 32%, in stark contrast to oil’s 6.3% decline, the S&P 500’s 1% drop, and a 1% fall in gold.

The cryptocurrency’s remarkable performance has fueled optimism among analysts, many of whom predict the current bull rally could extend through 2025.

This phase, often referred to as the “euphoria stage” in crypto circles, is characterized by heightened investor confidence and market exuberance.

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Long-Term Holder NUPL Suggests Euphoria Stage

Quinten François, co-founder of WeRate, pointed to the long-term holder net unrealized profit/loss (NUPL) metric as evidence of Bitcoin’s entry into this euphoric phase.

“Bitcoin is entering the euphoria stage. You have a maximum of 12 months before the cycle top,” he wrote in a December 7 post on X.

$BTC is entering the euphoria stage

You have maximum 12 months before the cycle top pic.twitter.com/984OYpbaRH

— Quinten | 048.eth (@QuintenFrancois) December 7, 2024

The NUPL metric gauges the profit or loss status of Bitcoin holders, indicating the network’s overall profitability.

James Coutts, chief crypto analyst at Real Vision, also commented on the milestone, noting Bitcoin’s strength despite a challenging global liquidity environment.

“Bitcoin has hit new ATHs in the face of a deteriorating liquidity backdrop. If conditions worsen, the rally, while euphoric, can only last for a limited time. If conditions ease, we could see another leg up,” Coutts wrote on December 6.

Global liquidity trends are seen as a critical factor in Bitcoin’s trajectory. A potential bottom in the global M2 liquidity index—encompassing cash and short-term bank deposits—suggests Bitcoin may continue its ascent in the near term before facing a correction.

Bitcoin has hit new ATHs in the face of a deteriorating liquidity backdrop.

1. If conditions worsen, the rally, while euphoric, can only last for a limited time.
2. If conditions ease from here, then a pullback is warranted, but then off we go again.

Remember, I am very… pic.twitter.com/KOclmmsNjQ

— Jamie Coutts CMT (@Jamie1Coutts) December 5, 2024

Meanwhile, Raoul Pal, founder and CEO of Global Macro Investor, projects a local top above $110,000 by January 2025, based on Bitcoin’s correlation with the liquidity index.

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Corporate Interest In Bitcoin Increases

Last week, North American Bitcoin mining giant Hut 8 announced a $250 million stock repurchase program alongside a share sale initiative. The proceeds from these programs are expected to fund various initiatives, including acquiring Bitcoin as a strategic reserve.

Hut 8 joins a growing list of companies investing in Bitcoin reserves, including Genius Group, Hoth Therapeutics, and Jiva Technologies, signaling a broader trend of corporate interest in digital assets.

Other companies are also turning to Bitcoin to diversify their treasuries. Video platform Rumble announced plans to invest in Bitcoin on November 25, while Genius Group recently acquired 110 BTC for $10 million, aiming to hold up to 90% of its reserves in Bitcoin.

Furthermore, healthcare technology firm Semler Scientific has expanded its Bitcoin portfolio. It purchased an additional 47 BTC for $3 million. The acquisition brings the company’s total holdings to 1,058 BTC as part of its ongoing strategy to accumulate Bitcoin.

More recently, Japanese investment firm Metaplanet also announced that it is looking to bolster its Bitcoin reserves by raising over $62 million (9.5 billion Japanese yen) through a stock acquisition initiative.

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Disclaimer

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