(Kitco News) – Bitcoin’s ongoing rally to new all-time highs is being driven by a powerful combination of macroeconomic factors and regulatory support, which could sustain a series of fresh all-time highs over the coming months, according to Ryan Lee, Chief Analyst at Bitget Research.
Lee told Kitco News that both Bitcoin and Ethereum are enjoying significant price drivers that should last at least until the end of the third quarter.
“Bitcoin’s surge past $117,000, fueled by Trump’s pro-crypto policies, ETF inflows, and corporate treasury buying, signals a sustained bullish trend for Q3 2025,” Lee said. “BTC is projected to average $125,000, with a high of $135,000–$150,000 and a low of $105,000–$110,000.”
“Ethereum, currently trading at $2,800–$3,000, is driven by ETF inflows, the Pectra upgrade, and DeFi growth, with a Q3 average forecast of $3,800, ranging from $2,900 to $5,000,” he said. “ETH needs to break the $3,700 resistance to confirm upside momentum but could dip to $2,700 if BTC corrects or regulatory uncertainties arise. Corporate adoption and staking (34.6M ETH staked) bolster ETH’s long-term value, though volatility and competition from blockchains like Solana pose risks. Investors should brace for 10–30% corrections and monitor macroeconomic shifts and policy execution closely.”
Lee noted that Bitcoin’s current rally is being driven by a mix of macroeconomic tailwinds and regulatory developments.
“Expectations of US interest rate cuts have fueled a risk-on sentiment, while pro-crypto political narratives—particularly from the Trump campaign—are reshaping how institutional capital views Bitcoin as a hedge and a long-term asset,” he said. “The upcoming votes on the GENIUS Act and CLARITY Act could add further fuel by signaling long-awaited policy alignment. That said, global tariff tensions and geopolitical uncertainty remain wildcards that could introduce volatility in the weeks ahead.”
He added that investor sentiment is decisively bullish, as evidenced by record inflows into spot Bitcoin ETFs, which have now surpassed $51 billion. “Institutional demand is strong, and treasury allocations from corporates are becoming more normalized,” Lee said. “ETH is also seeing steady staking participation, with 34.6 million ETH now locked, indicating long-term confidence. At the same time, capital is beginning to rotate into high-utility sectors such as real-world asset (RWA) tokenization, stablecoins, and AI-integrated blockchain projects.”
“These flows suggest that investors are positioning for sustained growth across both foundational and frontier sectors.”
But despite the overall bullish picture, Lee said he’s still watching for signs of exhaustion from market participants. “On-chain indicators like the MVRV Z-Score suggest that while we’ve seen a local top, the market hasn't hit overheated extremes yet,” he noted. “A 10–30% pullback wouldn’t be unexpected, especially as leverage builds up or if legislation introduces unexpected clauses.”
Lee said the critical near-term levels to watch are Bitcoin’s key support at $108,500 and resistance at $130,000. “Should BTC fail to hold above $110,000 in the coming weeks, it may indicate temporary overextension and open the door to deeper corrections before Q4 strength resumes,” he said.
After setting a new all-time high above $118,900 just after 5:30 am EDT, Bitcoin’s price is rising once again on Friday morning.
Bitcoin last traded at $118,034.71 for a gain of 1.72% on the daily chart.
