Why Bitcoin's 2025 Bullish Outlook Is More Than Just Hype

The bullishness in 2025 for bitcoin has stirred considerable chatter about why the largest cryptocurrency is one of this year’s best-performing assets. That status is, of course, good news for ETFs such as the CoinShares Valkyrie Bitcoin Fund (BRRR).

The Demand Factor

The aforementioned conversation has revolved largely around demand. There’s a steady stream of clamoring for bitcoin at the highest levels of the corporate and investment communities. That’s the case whether it’s ETF issuers meeting demand from advisors and investors, or more companies building bitcoin Treasuries.

Long-Term Holding Perspectives

Another factor figuring prominently in the 2025 bitcoin conversation is the increasing willingness of market participants to treat the digital currency as a long-term holding. That objective is made easier with ETFs like BRRR. Speaking of approaching bitcoin and BRRR with long-term perspectives, there are credible reasons to do just that.

Government Spending and Debt

With the U.S. being a prime example, major governments around the world are doing poor jobs of reining in spending. Many are taking on more sovereign debt, kicking the can down the road for future generations to deal with. Those swelling debt obligations are negative, but could be a long-term positive for bitcoin and ETFs like BRRR.

“In the U.S., interest payments on the national debt are on track to surpass military spending and medicare in the next three years,” noted CoinShares. “Investors are increasingly wary of the long-term sustainability of sovereign debt, particularly as The Big Beautiful Bill increases 10-year spending plans and refinancing at higher rates becomes a structural issue.”

Inflation and Monetary Policy

BRRR’s issuer also highlighted sticky inflation and murky monetary policy as factors potentially boding well for bitcoin. In the U.S., the Federal Reserve appears to be obliging, because the central bank hasn’t lowered rates this year.

“Currently there’s a lack of consensus for U.S. inflation expectations due to tariff impact uncertainty. Interest rate cycles, best described in our opinion as rapid hikes and delayed cuts, along with erratic government actions have introduced a new layer of policy unpredictability,” added CoinShares.

Diversification Benefits

And there are increasing views that the cryptocurrency provides credible, much-needed diversification in traditional investment portfolios — even in modest doses.

“Bitcoin is increasingly recognized by professional investors for its uncorrelated return profile. It is now well documented that adding bitcoin to a diversified portfolio can improve risk-adjusted performance. In our April 2025 survey, with responses from professionals managing $478 billion AUM, diversification ranked as the top reason for investing in digital assets, cited by 30% of respondents,” concluded CoinShares.