After a strong start to October that saw Bitcoin (BTC) hit new record highs, the world’s leading cryptocurrency took a breather this week. Despite the short-term decline, analysts remain confident that Bitcoin’s long-term outlook remains bullish — with some even predicting it could surpass $140,000 before the end of 2025.
Bitcoin Pulls Back After Record Highs
Bitcoin briefly touched a new all-time high of $126,080 on Monday, according to CoinGecko data. However, within 24 hours, BTC corrected by over 3%, falling to around $122,071 on Tuesday. This pullback coincided with a broader downturn in the crypto market, as several major tokens posted moderate losses.
The decline came just as gold, Bitcoin’s traditional “analog” counterpart, hit an all-time high of $4,000 per ounce, reflecting a wider investor trend toward safe-haven assets amid ongoing global economic uncertainty.
Analysts See Bitcoin as a Long-Term Store of Value
Despite the minor correction, market experts remain positive about Bitcoin’s long-term trajectory. According to Gerry O’Shea, head of global market insights at Hashdex Asset Management, Bitcoin’s role as a hedge against inflation and currency debasement is driving renewed investor interest.
“As more investors move their wealth into assets that preserve long-term value, Bitcoin continues to stand out as a borderless store-of-value asset,” O’Shea said. “Given its strong fundamentals and increasing institutional adoption, BTC could break past $140,000 by year-end.”
O’Shea added that investors are turning to what’s known as the “debasement trade” — buying assets like Bitcoin and gold that can protect against weakening fiat currencies, especially amid growing fiscal concerns in the United States and abroad.
Economic Concerns Drive Demand for Bitcoin and Gold
Growing fears about U.S. fiscal stability and global economic policies have strengthened the appeal of alternative assets. Analysts point to rising U.S. deficits, high national debt, and persistent inflationary pressure as reasons why investors are looking beyond traditional markets.
The U.S. dollar, long considered the world’s reserve currency, is under pressure amid tariff-driven trade tensions and high government spending. Meanwhile, other major global currencies like the euro and Japanese yen are also struggling due to sluggish growth in their respective economies.
Against this backdrop, Bitcoin and gold are gaining renewed interest as modern and traditional hedges against inflation.
Institutional Inflows Strengthen Bitcoin’s Market Position
Institutional investors have been a key force behind Bitcoin’s latest rally. In recent weeks, Bitcoin investment products — including U.S.-based exchange-traded funds (ETFs) — saw their largest-ever net inflows, underscoring continued demand from professional traders and funds.
Research strategist Dilin Wu from Pepperstone believes that the “debasement trade” still has room to run. “I believe the debasement trade is far from over and could continue for the next six to eighteen months,” Wu told Decrypt.
She highlighted that rising U.S. fiscal deficits, falling real interest rates, and accommodative monetary policies remain strong drivers of the bullish narrative. “Bitcoin is now being seen as a digital safe haven rather than a purely speculative asset,” Wu said.
Wu also pointed out that the increase in ETF holdings and institutional inflows reinforces Bitcoin’s evolution from a niche investment to a recognized store of value in global markets.
Historical Trends Support Optimism
Bitcoin’s seasonal patterns also support a bullish outlook for the rest of the year. Historically, the fourth quarter has been one of Bitcoin’s strongest periods, often producing double-digit gains.
According to market data, Bitcoin has averaged a 79% increase in Q4 since 2013, reflecting cyclical inflows of institutional capital as funds rebalance their portfolios ahead of the new fiscal year.
With Bitcoin’s fundamentals improving and institutional confidence at record highs, analysts believe the current correction could simply be a healthy consolidation before another leg up.
Outlook: Bitcoin Still Has Room to Grow
While short-term volatility is to be expected, experts suggest that Bitcoin’s underlying momentum remains strong. As global economic uncertainty persists, both retail and institutional investors continue to diversify into alternative assets like Bitcoin and gold.
“Bitcoin’s long-term trajectory looks promising,” said O’Shea. “The digital asset has proven its resilience through multiple market cycles and continues to attract capital as a reliable hedge against currency depreciation.”
As 2025 enters its final quarter, Bitcoin’s path toward $140,000 remains a realistic target, supported by favorable macroeconomic conditions, institutional demand, and growing recognition of its role as a digital alternative to gold.
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