Bitcoin Dominance Drops Again, Is Altcoin Season Coming in August?

Bitcoin may face three potential trend scenarios in the future, with the most optimistic one forecasting a surge to $150,000 to $175,000 within the next 12 months. 

This prediction is supported by factors such as a strong influx of institutional capital and positive investor sentiment following the Trump administration’s plans to establish a national Bitcoin reserve.

Positive Forecasts from Experts and Market Signals

Bitcoin (BTC) is showing promising prospects as numerous positive signals from the market and expert predictions emerge in early May 2025. In an analysis by AxelAdlerJr, as of today, on-chain momentum is in the “starting” phase of a bull run.

The Bitcoin Composite Index currently stands at ≈ 0.8 (80%). Based on this indicator, AxelAdlerJr outlined three possible scenarios.

In the most optimistic scenario, BTC’s price could reach $150,000 to $175,000, following the cyclical logic of 2017 and 2021. This would occur if the Bitcoin Composite Index surpasses 1.0 and remains above that level.

If the ratio stays within the 0.8–1.0 range, the market would likely consolidate in a broad corridor between $90,000 and $110,000, indicating that participants are maintaining positions without increasing exposure.

Alternatively, if the ratio drops to 0.75 or below, short-term holders may start taking profits, potentially leading to a price correction to $70,000–$85,000. However, AxelAdlerJr notes that this scenario is less likely than the other two.

On-chain signals further bolster the bullish outlook. According to Coinglass, over the past 7 days, approximately 42,525.89 Bitcoins were withdrawn from centralized exchanges (CEX), reducing the supply on exchanges to a 7-year low of about 2.48 million BTC.

The trend of Bitcoin withdrawals from exchanges is often seen as a positive sign, as it indicates investor accumulation and reduced selling pressure, paving the way for price growth.

Bitcoin’s 7-day volatility has also hit its lowest level in 563 days. Low volatility typically signals a period of accumulation before a price breakout, as observed during past major rallies, such as in 2020 before Bitcoin peaked at $69,000.

Technical Analysis and Key Price Levels

Technical analysis also supports Bitcoin’s bullish scenario. According to a post on X by Ali, Bitcoin’s key support levels are at $93,198 and $83,444, indicating strong consolidation above these thresholds.

If Bitcoin sustains above $93,198, the likelihood of continuing its upward trend to reach the $150,000 target becomes highly feasible. 

“The most critical support levels for #Bitcoin $BTC are $93,198 and $83,444. Key zones to watch if momentum shifts,” Ali shared.

Moreover, Breedlove22, a well-known analyst, shared on X about three indicators signaling optimism for Bitcoin. The first is the Average Miner Cost of Production. According to Breedlove22, this metric is at a bottom, suggesting a significant bull market may be on the horizon.

The second indicator is the supply held by long-term holders, which measures Bitcoin unmoved on-chain for at least 155 days. Breedlove22 noted that over the past 30 days, long-term holders have acquired an additional ~150,000 BTC. 

“Bitcoin is running out of sellers in the $80,000 to $100,000 range,” Breedlove22 stated.

Lastly, and most importantly, is USD liquidity, which effectively represents the “demand” side of the equation. More dollars in the system mean more potential bidders. 

“And it’s not just USD liquidity that’s increasing – liquidity of all fiat currencies is on the rise, and Bitcoin is a global asset,” Breedlove22 added.

Echoing Breedlove22’s perspective, another X user shared that BTC’s valuation based on hash rate is at a support level, suggesting that a local bottom may have been reached.

In the optimistic scenario, Bitcoin is poised for a significant opportunity to reach $150,000 to $175,000. However, investors should also prepare for risks such as short-term price corrections.

With strong support levels at $93,198 and $83,444, Bitcoin has a solid foundation for continued growth, but caution remains essential.

The post Three Key Scenarios for Bitcoin Price in 2025 – Could BTC Hit $175,000? appeared first on BeInCrypto.

The role of stablecoins is expanding beyond the crypto market and attracting attention from traditional financial institutions. Meanwhile, new regulations from Europe and the US could make stablecoins more useful in the real world.

However, these regulations also pose challenges for stablecoin issuers like Tether and Circle. Currently, Tether’s USDT and Circle’s USDC dominate the stablecoin market capitalization, but many experts believe this could change in the future.

Expert Questions the Sustainability of Tether and Circle’s Business Model Under New Regulations

A recent PitchBook report revealed that the top 10 stablecoins have a total market capitalization of approximately $220 billion—up from less than $120 billion two years ago. Tether alone accounts for about 65% of this total, while USDC holds another 25%.

The report also highlighted that fiat-backed stablecoins are the most common, making up around 95% of the total supply. However, Robert Le, a senior analyst at PitchBook, warned that such a high concentration carries risks.

“Another major risk is centralization, in which a single entity such as Tether or Circle controls the minting and burning of tokens, raising concerns about decision-making and conflict of interest. An issuer might halt redemptions or freeze funds under regulator pressure, hurting legitimate holders,” PitchBook Analyst Robert Le commented.

Legal risks are also becoming more evident as US regulators draft specific rules for stablecoins. Several bills, including FIT21, GENIUS, and STABLE, are currently under discussion.

The US is expected to introduce stablecoin-specific legislation next year. This would legalize stablecoins but impose stricter requirements on issuers, such as higher reserve standards, mandatory audits, and increased transparency. Meanwhile, the EU’s MiCA regulations require stablecoins to meet banking-like standards. In response, Tether has opted out of the European market to avoid MiCA compliance.

Traditional Finance Firms Plan to Enter the Stablecoin Market

A report from Ark Invest stated that in 2024, the total annual transaction volume of stablecoins reached $15.6 trillion—equivalent to 119% of Visa’s volume and 200% of Mastercard’s. Despite this, the number of stablecoin transactions remains relatively low at 110 million per month, only 0.41% of Visa’s and 0.72% of Mastercard’s.

This suggests that the average stablecoin transaction value is significantly higher than those of Visa and Mastercard.

Due to this growing demand, traditional financial institutions are racing to develop their own stablecoins.

Major banks like BBVA and Standard Chartered are considering launching their own stablecoins. PayPal has already introduced PYUSD, while Visa is developing the Visa Tokenized Asset Platform (VTAP) to help banks issue stablecoins. Notably, Bank of America (BoA) recently committed to launching a stablecoin if new US regulations permit.

Meanwhile, investment giants such as BlackRock, Franklin Templeton, and Fidelity are offering tokenized money market funds. These funds function similarly to stablecoins and could directly compete with USDC and USDT.

“We further expect that every major financial platform or fintech app will seek to launch its own stablecoin, hoping to lock users into seamless payment ecosystems. However, we believe only a handful of trusted issuers—those with regulatory greenlights, recognized brands, and proven technological reliability—will ultimately capture the majority of market share.” – PitchBook predicted.

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