Bitcoin has reached a series of new highs in 2025, with each pullback being more limited than the previous one, according to analysts.
Yesterday, before the post-Jackson Hole recovery began, Bitcoin dipped below $112,000, hitting its lowest level since early August. However, last week, Bitcoin hit a new high near $125,000, confirming the expected trend amid growing interest from institutional investors: declines following new highs become increasingly shallow.
David Duong, Head of Institutional Research at Coinbase, noted that the current surge is a remarkable period in the development of cryptocurrencies:
“The rally and subsequent shrinking pullbacks since the beginning of the year are closely linked to increased institutional demand and regulatory clarity.”
On August 14, Bitcoin hit its fifth all-time high of the year at $124,496 before falling 10% to $111,658. While this decline was slightly larger than the 9% decline following the $123,194 peak in July, it was more limited than the sharp pullbacks in January and May. According to Duong, this reflects confidence in Bitcoin’s resilience and the increased liquidity in the market.
“Shallower declines reflect strong demand supported by long-term investors and corporate treasuries. This could also signal a potential regime shift in capital assumptions in the markets.”
Bitcoin rose to prominence among risk-on assets in April, managing to stay above $80,000 despite President Donald Trump’s tariff announcement. Maintaining this level throughout the year, Bitcoin’s strength despite volatility in the stock market has drawn attention. Experts attribute this strength to increased institutional buying through ETFs and cryptocurrency-focused companies.
DYOR CEO Ben Kurland stated that Bitcoin’s movements this year indicate the maturation of the market:
“The shallower pullbacks and faster recoveries after each peak demonstrate the growing influence of strong investors, deep conviction, and long-term holders.”
Analysts predict that a potential interest rate cut in September could be a major catalyst, while a delay could trigger short-term selling pressure. According to Kurland, the timing of the monetary policy easing could coincide with the final rally of this cycle, and unlike past cycles, the subsequent correction could be quite limited.
*This is not investment advice.