Bitcoin Price Prediction: If multiple favourable information make a strong push together, BTC is expected to challenge $250,000 by the end of the year.

Core Drivers of Bitcoin's Rally Crypto analyst EliteOptionsTrader pointed out that one of the key drivers of this rally is the market's strong expectation of Ethereum spot ETF approval. Just as the Bitcoin ETF has attracted a large amount of institutional funds, the approval of the ETH ETF may once again trigger a massive inflow of funds, which will drive the entire cryptocurrency market, including Bitcoin, to rise further.

In addition, with the U.S. elections coming to a close, the market's focus shifts to the potential interest rate cuts by the Federal Reserve in 2025. Rate cuts will weaken the dollar, reinforcing Bitcoin's role as "digital gold" and a safe-haven asset, further attracting investor allocation.

At the moment, the allocation of hedge funds, sovereign wealth funds and pension plans to bitcoin is still extremely low. Once they start adding to their positions, it could completely change the supply and demand structure of Bitcoin.

Long-term consolidation builds a solid foundation Bitcoin has been oscillating below $110,000 for more than nine months, and such prolonged sideways trading usually signals a strong breakout to follow. The current uptrend is expected to continue further. However, there is also a technical possibility of a short-term retracement of $115,000–$118,000, and this area will be the key support.

In terms of resistance, the market is closely watching the $125,000 level. Once broken, it may open up space for further upward movement.

Institutional FOMO sentiment brewing Even though the price of Bitcoin has risen, most institutions have not really entered the market. According to EliteOptionsTrader's analysis, if a large pension fund or insurance institution allocates bitcoin, it may trigger a new round of price "discovery" and push it into a price vacuum.

More importantly, the Bitcoin halving effect in April 2024 has not yet fully been released, and the impact of its long-term supply pressure reduction often takes a longer period of time to manifest, but we have already seen a rebound in demand.

The market still needs to be vigilant about adjustment risks Despite the upward trend, there could still be a 10%-20% retracement in the Bitcoin price, especially in the event of a sudden change in macro policy or regulation. For example, the introduction of sudden regulatory policies by the US SEC or Europe may become an unstable factor in the process of rising.

Mid-term Goals and Operational Suggestions If Bitcoin manages to break through $127,000, it is expected to hit the $150,000 mark further. According to EliteOptionsTrader's analysis, if all bullish factors continue to exert force, the possibility of challenging $250,000 by the end of the year cannot be ruled out. However, the realization of this goal requires the continuous cooperation of the market, and there can be no major disruption events.

The current round of rally is worth looking forward to, but traders also need to be vigilant about the effectiveness of support and the extent of retracement, avoid blindly chasing higher, and reasonable risk control is the key to crossing bulls and bears.

Conclusion: Bitcoin's latest breakthrough has not only ignited market sentiment, but also opened up imagination for future upside. ETF expectations, institutional FOMO, macroeconomic resonance and other factors are brewing a bigger market, but each rise is also accompanied by new risks and challenges. For crypto users, now is the time for strategy and patience.