The cryptocurrency market is once again facing heightened volatility following U.S. President Donald Trump’s plans to impose a 25% tariff on the European Union. This decision has sent shockwaves through global financial markets, increasing uncertainty and exacerbating market fluctuations. However, amidst the growing pressure on the market, Bitcoin’s long-term outlook remains a subject of debate among analysts.

Bitcoin’s Bullish Potential in 2025

Despite the ongoing economic turmoil, Assure DeFi CEO and crypto analyst Chapo holds a positive outlook on Bitcoin for the year 2025. According to Chapo, Bitcoin still has significant upside potential and could continue its bullish trajectory in the current cycle. While the broader market is dealing with a fresh wave of turbulence, Chapo believes that Bitcoin could reach new highs before the cycle peaks.

One of the key metrics that Chapo relies on to predict Bitcoin’s potential growth is its Market-Value-to-Realized-Value (MVRV) ratio. MVRV is a tool used to measure the relationship between Bitcoin’s market capitalization and its realized capitalization, which is the total value of all the BTC at their price when last moved. In a recent post on social media platform X (formerly Twitter), Chapo suggested that Bitcoin’s MVRV could peak at 3.2 during this cycle, signaling that further bullish momentum is possible in 2025.

Historically, Bitcoin’s MVRV has spiked around the cycle’s peak, and Chapo noted that Bitcoin’s MVRV ratio reached 3.2 in April 2021 when Bitcoin’s price surged to $58,253. That represented a 101% gain from $28,994. Chapo emphasizes that the market is not yet at this level, indicating that there is room for more growth before the cycle reaches its top.

What Does MVRV Tell Us About Bitcoin?

Bitcoin’s MVRV ratio is often used to determine if the asset is overvalued or undervalued. Currently, the MVRV ratio stands at 2.09, meaning that the average Bitcoin holder has more than doubled their initial investment. While this signals strong market participation, it also indicates that Bitcoin is far from reaching an overvalued point.

Chapo highlighted that historically, MVRV spikes significantly when Bitcoin nears its cycle top. This is when profit-taking surpasses new buying interest, and the market becomes less favorable for new investors. However, Chapo suggests that there is still significant room for Bitcoin to grow before this happens. Once MVRV spikes, it signals that the market is reaching a point of maximum risk, where further gains are unlikely and price corrections may begin.

Other Analysts Share the Same Optimism

Chapo’s viewpoint is not unique. CryptoQuant’s Head of Research, Julio Moreno, shares a similar outlook, reinforcing the belief that Bitcoin has a bullish 2025 ahead. Analysts across the board are paying close attention to the MVRV ratio and the historical patterns it follows. This provides a strong case for a potential rally in Bitcoin’s price as 2025 progresses.

The Current Market Dynamics

As of writing, Bitcoin is trading at $86,113.30 after a 3.47% decline in the past 24 hours, according to CoinMarketCap. The market is clearly reacting to geopolitical developments, such as the tariff, as well as ongoing volatility in other financial sectors. Despite this, there remains a sense of optimism among long-term Bitcoin holders who are weathering short-term fluctuations.

In the coming months, the market will continue to analyze key indicators to determine whether Bitcoin has found a stable support level or if further price corrections are imminent. While short-term uncertainty remains, analysts like Chapo suggest that Bitcoin’s long-term outlook remains favorable for 2025.