Bitcoin’s surge past $110,000 highlights its growing role as a hedge against bond market volatility, with rising U.S.

Treasury yields fueling investor concern over broader economic stability. While this rally reflects strong institutional demand—driven in part by ETF inflows—its sustainability remains in question, as tighter liquidity conditions could weigh on risk assets.

Looking ahead, Bitcoin price forecasts for 2025 range between $120,000 and $200,000, supported by continued institutional interest and macroeconomic uncertainty.

Ethereum is projected to reach $2,800–$5,000, bolstered by supply constraints and growing use cases in real-world asset tokenization.

As traditional safe havens like gold underperform, Bitcoin is gaining traction as a portfolio diversifier.

However, its correlation with equities during market stress and susceptibility to sharp corrections means it remains a high-risk asset.

For most portfolios, a prudent allocation would be in the 2–5% range, with ongoing macro shifts and regulatory developments likely to shape the path forward.

Ryan Lee, Chief Analyst at Bitget Research

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