Bitcoin Halving Ignites DeFi Boom: Can BTC Price Reach $250,000 with New Strategic Reserve?

Bitcoin’s environment experiences fundamental shifts because Bitcoin halving combined with decentralized finance (BTCFi) changes how Bitcoin functions and shapes its marketplace. In April 2024, Bitcoin underwent reward mining cuts to 3.125 BTC, which strengthened Bitcoin’s deflationary properties while drawing more investors to observe its future price evolution. BTCFi has enabled yield-generating possibilities through its $8.6 billion TVL growth, which resulted from the Runes protocol and the development of USDh synthetic dollar. The U.S. strategic Bitcoin reserve program joins other developments that transform Bitcoin from a passive monetary asset into an on-chain productive asset.

Bitcoin’s Transformative Leap: Halving, BTCFi, and Strategic Reserves

The BTCFi sector experienced explosive expansion following this key event while its Total Value Locked exceeded 2,700% to reach $8.6 billion. BTCFi features Babylon’s Bitcoin staking service alongside Hermetica’s USDh synthetic dollar product, which provides 25% interest to Bitcoin holders, thus making Bitcoin transition from a passive store to an active productive asset. Runes protocol brought additional utility to Bitcoin halving because it enabled blockchain users to create fungible tokens.

The movement matches institutional adoption because the U.S. strategic Bitcoin reserve program started in March 2024 to hold stolen BTC from criminal operations. Bitcoin’s acceptance as an economic uncertainty protection mechanism continues to grow through its strategic reserve while ETF approvals from regulatory bodies direct institutional investments into the asset.

As BTCFi advances, it faces market sluggishness, and Ethereum’s well-established DeFi platform becomes a significant competitor. The Bitcoin reserve advances through layer-2 solutions and sustainable mining methods after Bitcoin halving events, whereas it addresses the scalability as well as sustainability challenges. The TVL of BTCFi will extend to three times its current value by 2025 because of yield-generating elements added with rising institutional interest, thus creating Bitcoin as an economic tool that connects centralized financial systems with decentralized technologies. 

Bitcoin Price Analysis: Death Cross Signals Potential Downtrend

The trading session on April 3 began with obvious downward pressure. Bitcoin price movements interrupted the downward movement by breaking out of the channel. The RSI indicator went into the oversold zone before eventually returning to find some support around the mark of approximately $81,238. Then, several golden crosses appeared, confirming a bullish attitude. The RSI entered an overbought condition, signifying possible resistance at $84,004 level. A breakout happened at 12:15 UTC above this resistance, followed by a violent slump.

Chart 1, analysed by anushrivarshney2613, published on TradingView, April 4, 2025

At the moment, Bitcoin hovers around $84,717 with a possible retest of the $81,238 support area. The death cross at the end of the chart shows more downside risk. Bitcoin Price prediction based on this analysis indicates possible continuation to the downside to test $81,238 support. If this level fails to hold the price, further drops could follow. In contrast, renewed upward momentum and a break above recent highs for Bitcoin will indicate the start of a new bullish trend.

What Future Holds for Bitcoin?

The price trajectory of Bitcoin demonstrates a positive outlook due to three significant developments expected in 2024, including institutional entry and BTCFi expansion. Various analysts believe Bitcoin will achieve prices above $100,000 by the end of 2025, based on their predictions, which extend to $140,000. The combination of increasing scarcity and rising adoption will lead Bitcoin prices to reach $1.5 million by 2030, along with multi-million values by 2040. BTCFi inventions such as staking and synthetic dollars are creating yield-generating opportunities for Bitcoin, thus enabling it to become a productive asset. In addition, the U.S. reserve strategy regarding Bitcoin reserves shows increasing institutional interest, which could further strengthen demand.