21 shares report that increased demand for institutions and tightening supply could boost Bitcoin prices amid improved global macro conditions.
In particular, Bitcoin (BTC) is approaching a critical breakout phase, strengthened by the convergence of structural factors that expand beyond retail speculation. According to recent forecasts from investment firm 21Shares, Bitcoin could reach $138,500 by the end of 2025.
This forecast takes into account increased institutional participation, favourable macroeconomic changes, and deepening of supply crunches.
As of today, Bitcoin is trading at $104,684, an increase of 2.16% over the last 24 hours and an increase of 0.95% over the last seven days.
As supply decreases, facility purchases will accelerate
21Shares reports that institutional capital has moved to the forefront of Bitcoin’s demand structure. Spot Bitcoin Exchange-Traded Funds (ETFs) have become consistent net buyers, absorbing more than the daily 450 BTC generated through mining.
The next chapter of Bitcoin is written by an institution, not by a retailer.
The ETF absorbs more BTC than the network generates, and the supply is rapidly drying due to macrotail wind building. Dive into the latest analysis of why this market is different: https://t.co/teq9m28ucd pic.twitter.com/wscdiiog1h
– 21 shares (@21 shares) May 20, 2025
This permanent discrepancy between supply and demand reduces availability and supports higher prices. At the same time, the agency is exploring alternative exposure strategies, including Michael Saylor’s strategy and future allocations through companies such as Twenty One Capital.
In parallel, every 21 shares Reportsome public companies are beginning to hold Bitcoin as part of their financial strategy. Additionally, jurisdictions such as New Hampshire and Texas have proposed legislation to establish state-level Bitcoin reserves.
Internationally, Abu Dhabi’s sovereign wealth fund is reportedly accumulating BTC, indicating a growing state-level interest in assets. These developments demonstrate fundamental changes in how Bitcoin is adopted and held by long-term holders.
Macroeconomic trends strengthen positive outlook
The broader macroeconomic environment also plays a key role in Bitcoin’s upward trajectory. Central banks, including the US Federal Reserve, are expected to reverse courses after a two-year rate hike.
True yields have declined, and the US dollar has weakened in recent months. At the same time, global liquidity is expanding as central banks in Europe, Japan and China are increasing their balance sheets. These changes support risky assets, and Bitcoin is particularly sensitive to such liquidity movements.
Around 21 sharesimproved US relations also add momentum. The recent ease of trade tensions between the two countries has eased investors’ sentiment.
Stock markets rose, credit spreads tightened, and financial indicators such as M2 and ISM manufacturing indexes began to recover. Historically, Bitcoin has been tracking the growth of the M2 with a 12-week delay. This is a pattern that appears to be repeated.
Historical trends inform current forecasts
21 shares point to how previous Bitcoin rallies usually occurred six months after the harving event. Past cycles like 2017 and 2020 have often been driven by retail enthusiasm and loose monetary policy.
Though 10x profits are not expected this time, 21 shares say that twice or three times from Bitcoin’s previous $69,000 peak will coincide with historic post-Herning behavior.
Furthermore, retail participation remains moderate compared to past cycles, suggesting that current price growth is primarily institutional in nature. Capital is reportedly flowing from registered investment advisors (RIAS), wirehouses and corporate investors. This pattern differs from previous bull run, and refers to a more durable demand base.
Other companies that are paying attention to more than $130,000
Last October, research company EcoInometrics release An analysis showing that Bitcoin’s value could potentially double the value in the next 12 months.
This forecast was based on the assumption that both Bitcoin and the broader stock market would maintain upward momentum throughout the period. Under such conditions, the company suggested that BTC could reach around $130,000 by the second half of 2025, increasing 100% from its value at the time of report.
Meanwhile, Vaneck, investment manager known for issuing Crypto ETFs; It is outlined Long-term forecasts for Bitcoin, which will be extended until 2050. The company presents three different scenarios, with its baseline case reaching $2.9 million by 2050.
