Peter Chung, head of research at Presto, a quantitative trading firm, recently shared a bold prediction about Bitcoin’s price trajectory. In an interview with CNBC’s Squawk Box Asia, Chung confirmed that Presto’s 2025 Bitcoin price target remains at $210,000. This optimistic forecast is based on key factors such as strong institutional demand and the continued expansion of global liquidity.

This forecast has gained attention, especially as Bitcoin recently reclaimed the $95,000 level after significant inflows into Bitcoin exchange-traded funds (ETFs). These ETF inflows marked the largest of the year, fueling optimism among market participants. According to U.Today, these inflows are largely driven by institutional investors, who have been increasingly involved in the cryptocurrency space, while retail investors have largely remained on the sidelines.

Bitcoin’s price movement has been impressive in the face of broader market challenges. Chung believes that Bitcoin’s current recovery is rooted in a “healthy” market correction. He likened Bitcoin’s role during recent macroeconomic turbulence, including tariff-induced volatility, to that of gold — an asset traditionally viewed as a safe haven during periods of instability. With Bitcoin’s increasing status as a store of value, many investors are starting to see the cryptocurrency as a hedge against economic uncertainty, similar to gold’s role in traditional finance.

Institutional Demand Driving Bitcoin’s Surge

The key driver behind Bitcoin’s price growth, according to Presto, is institutional demand. The influx of institutional investors has been a significant factor behind Bitcoin’s positive price action, especially in the first quarter of 2025. Presto’s analysis suggests that as liquidity expands globally and institutions continue to adopt cryptocurrencies, Bitcoin’s potential for growth is strong.

Bitcoin’s recent recovery from previous lows signals that it may be on the cusp of significant bullish momentum. The $95,000 level is seen as a psychological barrier, and breaking past this level could pave the way for Bitcoin to test higher levels in the future, including the $200,000 target. The continuation of institutional demand and the increasing institutional adoption of Bitcoin as a treasury reserve asset could propel Bitcoin toward this lofty goal.

Despite the ongoing bullish sentiment, Presto’s prediction does come with some caution. Although the broader market dynamics appear favorable for Bitcoin, the lack of explosive volume during recent breakouts has raised concerns. For Bitcoin’s price to move toward $200,000, investors are hoping for increased buying volume to sustain the momentum. The technical factors, including the cryptocurrency’s resistance levels and support zones, must be carefully monitored to ensure the breakout is legitimate and sustainable.

The ETH/BTC Ratio and Presto’s Other Predictions

Beyond Bitcoin, Presto’s research also touches on the ETH/BTC ratio, predicting that it could rebound to 0.05. However, this ratio has currently fallen to 0.019, signaling Ethereum’s struggles against Bitcoin in terms of relative strength. Despite this, Chung remains optimistic, citing the ongoing efforts within the Ethereum community to address issues related to value leakage. Should these efforts prove successful, it could lead to a stronger performance for Ethereum relative to Bitcoin in the future.

Presto’s predictions extend beyond Bitcoin and Ethereum. In December, the firm forecasted that the price of Solana could surge to $1,000, but given current market conditions, that prediction seems increasingly unlikely. Similarly, Presto anticipated that an S&P 500 company would adopt Bitcoin as a treasury reserve asset — another prediction that may take longer to materialize than originally expected.

Conclusion

While Bitcoin’s price predictions are inherently speculative, Presto’s outlook reflects a strong belief in the cryptocurrency’s future, especially with institutional demand and global liquidity playing a central role. As Bitcoin approaches significant resistance levels and continues to show resilience, many analysts and investors are optimistic about the potential for further growth. Should Bitcoin break through key levels and maintain upward momentum, the $200,000 price target could become a reality by 2025. For now, all eyes are on the cryptocurrency’s continued performance in the face of evolving market dynamics.