Bitcoin (BTC) has been underperforming the bullish expectations of late 2024 throughout the first quarter (Q1) of 2025. Specifically, after briefly hitting new all-time highs (ATH)

Alphabet's (NASDAQ:GOOGL) Gemma 3 model predicts that Bitcoin (BTC) will trade in the range of $85,000 and $150,000 by Easter 2025. The model, which is almost as advanced as DeepMind's DeepDream despite running on a single GPU, has analyzed Bitcoin's position and set a price target for the cryptocurrency.
According to Gemma 3, the lower price target of $85,000 is possible if there are setbacks and a slower-than-expected adoption rate. It is also a reasonable floor given the historical post-halving performance of Bitcoin, which usually sees substantial price appreciation in the year following a halving. The full impact of the supply shock created by the halving tends to be seen only months after the event, and we will be well into that cycle by Easter 2025.
On the other hand, the higher price target of $150,000 is achievable if the bullish factors, such as continued exchange-traded fund (ETF) growth and adoption, technological advancements and layer-2 solutions, and institutional adoption, remain dominant. It also factors in the potential for a significant macroeconomic tailwind, such as inflation being contained and interest rates being lowered, to drive Bitcoin prices upward.
The model also notes that regulatory clarity will be a key factor in determining Bitcoin's price trajectory. It is hoping that the macroeconomic climate will cooperate, and that the external shocks that have battered markets throughout 2024 will subside by Easter. These external shocks, which include the Iranian missile attack on Israel, heightened inflation, weak job reports, and the escalation of the trade war, have done much to damage the ‘digital gold’ narrative.
However, Bitcoin has shown resilience and recovered from lows hit earlier in 2024, and it is still trading at relatively high levels compared to the broader market. This suggests that the bearish factors, such as a sudden and harsh regulatory crackdown against the industry, competition from the other cryptocurrencies, security breaches, or a greater economic recession, may not be as dominant as the bullish factors.
Ultimately, Gemma 3's predictions are just that: predictions. It remains to be seen where Bitcoin will actually be trading by Easter 2025. However, the model's analysis provides some valuable insights into the factors that could influence Bitcoin's price in the coming year. It will be interesting to see if the model's predictions are accurate, or if Bitcoin has some "higher-highs, higher-lows" action in store.