How Will Bitcoin Perform in the Second Half of the Year? Rise or Get Dumped? Experts Answered

Some investors expect Bitcoin to emerge from the consolidation process in the second half of the year and reach new record levels.

Behind this optimistic expectation are the accelerating corporate treasury purchases, strong cash inflows into exchange-traded funds (ETFs) (ETF), and advancing cryptocurrency legislation in the US Congress.

Bitcoin rose by about 30% in the second quarter, but this period was labeled as "consolidation". Bitcoin, which traded within a narrow price range for three months, saw its gains decline on a monthly basis. The cryptocurrency, which gained 15% in the first half of the year, showed a more subdued performance compared to the 45% rise in the same period last year. However, analysts suggest that the real upward trend may be starting now.

Since May 9, Bitcoin, which has largely traded above 100,000 dollars, was trading at 108,000 dollars today. This figure is about 3% below the record of 111,999 dollars reached in May.

Citizens Bank Financial Technology Research Head Devin Ryan stated, "We are still seeing an acceleration in ETF adoption. Institutional treasury Bitcoin strategies are just beginning, and we expect more inflows from these channels." According to Ryan, individual and institutional interest in Bitcoin is steadily increasing, and this trend indicates a strong upward potential.

Another factor playing an important role in this rise is "Bitcoin treasury companies." Firms like Nakamoto, Twenty One, and Strive Asset Management are raising capital for Bitcoin purchases through stock issuance by merging with public companies. Steven Lubka, Vice President of Investor Relations at Nakamoto, stated, "There are mergers awaiting SEC approval. So there is much more money that is ready to buy Bitcoin but has not yet made a purchase."

Lubka states that not only institutional demand but also the new financial incentives expected from Washington and record-breaking exchanges will contribute to the rise of Bitcoin. Lubka, saying that "on one hand, Bitcoin is becoming a more mature asset class, while on the other hand, a large amount of capital is flowing into this area with the process of financialization," argues that the current administration's positive attitude towards Bitcoin will also be a major catalyst.

According to Geoff Kendrick, Head of Digital Assets Research at Standard Chartered, regulatory developments in the US could also support Bitcoin for the remainder of the year. If President Donald Trump appoints someone else to replace FED Chairman Jerome Powell, markets may price in expectations for an earlier interest rate cut. Additionally, the GENIUS Act, a stablecoin bill expected to pass Congress, could particularly increase interest in Bitcoin among individual investors.

Kendrick notes that some investors may be concerned about Bitcoin's four-year cycle as September approaches. Highlighting previous cycles where prices fell approximately 18 months after each halving, Kendrick suggests that this time institutional entries could balance these effects.

According to Standard Chartered's prediction, Bitcoin could reach $135,000 by the end of the third quarter and $200,000 by the end of the year. Kendrick stated, "We expect Bitcoin to continue its rise after the market has overcome these cyclical fears."