Throughout 2025, Bitcoin experienced significant market developments, with its price reaching a peak of over $100,000 after starting the year near $42,000. This sharp increase was facilitated by strong onchain liquidity and supply dynamics during the previous year’s rally.
Despite these advancements, the cryptocurrency faced limitations due to external economic factors, such as high real yields and a contraction of the Federal Reserve's balance sheet. These conditions potentially capped Bitcoin’s returns even as its onchain structure remained robust.
In terms of valuation, the market value to realized value (MVRV) ratio for Bitcoin rose from 1.8 in early 2024 to about 2.2 by the end of 2025. This indicates a strengthening market position, though it remained below the overheating threshold of 2.7.
Monthly stablecoin inflows averaged between $38 and $45 billion, reflecting a healthy liquidity environment. Additionally, the correlation between stablecoin inflows and Bitcoin outflows suggested accumulation trends, supporting the sustained price growth throughout 2024.