In 2024, Bitcoin saw a 150% increase, making it one of the year's best market performers. Three positive factors an better macro climate, growing investor euphoria, and regulatory optimism are responsible for this. you need to read the cryptocurrency tax calculator in 2025.
Analysts predict that the biggest cryptocurrency in the world will continue its upward trajectory in 2025, possibly reaching a price range of between $200,000 (€193,000) and $250,000 (€241,000).
Read Also: How is a cryptocurrency exchange different from a cryptocurrency wallet?
What Could Trump Signify For Regulation Of Crypto?
The ambiguity around rules and the enforcement strategy of the U.S. Securities and Exchange Commission (SEC) has been one of the major issues facing the cryptocurrency industry in recent years.
Trump promised the bitcoin and cryptocurrency sectors throughout his campaign that he would create a "Strategic National Bitcoin Stockpile" and dismiss SEC Chair Gary Gensler on the first day of his administration. Trump has suggested crypto enthusiast Paul Atkins to lead the agency after Gensler resigned.
There is no assurance that markets will receive what they desire or when they desire it, even while they wait for regulatory certainty.
The Bitcoin bull market may continue.
- Since 2017, Bitcoin has seen two bullish cycles, with new highs occurring every four years. Gains of 2300% and 1700% were recorded in each cycle, followed by 70% to 80% reverses.
- Bitcoin has increased by almost 600% since its low of $16,000 (€15,500) two years ago, suggesting significant room for development over the next two years.
- According to Tom Lee of Fundstart Global Advisors, Bitcoin may hit $250,000 by 2025. According to Standard Chartered, the cost will reach $200,000 in the upcoming year.
- When central banks are loosening their monetary cycles, cryptocurrencies often move in a favorable direction. Environments with higher liquidity and a rising money supply tend to improve investors' demand for riskier products.
- Given that the world's main central banks are anticipated to keep lowering interest rates in 2025, the current risk-on attitude is probably going to encourage more Bitcoin increases..
Must Know: How can I invest in cryptocurrency in USA?
The regulatory tailwind in the US
The main causes of the 2024 spike in Bitcoin's price were regulatory changes. In February, its price had a significant upswing, breaking over the crucial barrier level of $52,000 (€50,200).
Prior to the highly anticipated Bitcoin halving event in April, it came after the US Securities and Exchange Commission (SEC) approved a spot Bitcoin ETF in January.
Up until November, when Donald Trump won the US presidential election, Bitcoin fluctuated between $52,000 and $72,000 (€69,600).
Investor sentiment was raised by Trump's promise to enact laws that would benefit cryptocurrency, particularly his claim that he would turn America into the "crypto capital of the world."
Early in December, Bitcoin crossed the key $100,000 (€96,600) mark after Trump declared that he will choose pro-crypto former SEC commissioner Paul Atkins as the new SEC chair.
Analysts are optimistic about Bitcoin's prospects in 2025.
Josh Gilbert, a markets analyst with eToro Australia, stated, "That performance is likely to continue in 2025; we will have a clearer regulatory environment and we are seeing institutional capital come to the table in a more significant manner than we have ever seen."
In 2025, the practices of the Trump administration may still give cryptocurrency regulatory advantages. In December, the US president reaffirmed the country's intention to include Bitcoin in its strategic reserves. If this occurs, Charles Schwab, an investing company, predicts that Bitcoin will hit $1 million.
The president-elect stated at a conference in July that owning Bitcoin would provide "a permanent national asset to benefit all Americans." Over a five-year period, Senator Cynthia Lummis proposed buying no more than 200,000 Bitcoin tokens every year, or around 1% of the entire supply.
The maximum number of Bitcoin tokens that may be produced, according to its mining method, is 21 million. According to a Reuters article, the US government would sell part of its gold holdings to acquire the money to purchase Bitcoins, even if the idea did not specify how it would pass the legal procedure.
Risks of a short-term retreat
- However, the short-term correction risk could not be affected by the long-term perspective. The price of bitcoin has dropped precipitously from its peak of almost $108,000 (€104,300) in mid-December to the present $94,000 (€90,800) level.
- Profit-taking and risk-off attitude are probably the main drivers of this. Over the last two weeks, there has been a retreat in global stock markets, which is in line with this decrease.
- There are investors who could decide to lock in their 2024 profits until the incoming Trump Administration enacts explicit pro-crypto policy.
- Technically speaking, $90,000 (€87,000) seems to be the immediate support level for Bitcoin. The cryptocurrency may test the next goal of about $73,000 (€70,500) if it breaks below this level.
- Forecasts for the Price of Bitcoin and Its Influential Elements
- By the end of 2025, Bitwise and VanEck analysts predict that bitcoin will have grown to $200,000 and $180,000, respectively.
Must Read: Is Cryptocurrency Safe? How to Safely Invest in Crypto?
Will Altcoins Experience the Bitcoin Rally?
By submitting proposals for ETFs linked to other cryptocurrency currencies, such XRP (XRPUSD), financial institutions are already embracing a possibly more lenient regulatory climate. These applications go beyond the ones that were previously authorized for bitcoin and ether.
However, it's still unclear if altcoins—cryptocurrencies that aren't bitcoin—will join the party.
The Bitcoin Dominance Index, which gauges the cryptocurrency's total market dominance, just reached all-time highs for this cycle.
According to Seth Ginns, managing partner of CoinFund and head of liquid investments, "historically bitcoin dominance has been cyclical," as reported by Investopedia. "We’d expect a handoff to alts once bitcoin gets meaningfully above its all-time high, as happened in the last cycle."
With $100,000 in virtual cash, compete risk-free.
Use our free stock simulator to test your trading prowess. Trade your way to the top by competing with hundreds of other Investopedia traders! Before putting your personal money at risk, make trades in a virtual setting. Develop your trading techniques so that you have the necessary experience when you're ready to join the actual market. Check out our Stock Simulator now.
Evelyn Harper
In 2024, Bitcoin saw a 150% increase, making it one of the year's best market performers. Three positive factors an better macro climate, growing investor euphoria, and regulatory optimism are responsible for this. you need to read the cryptocurrency tax calculator in 2025.
Analysts predict that the biggest cryptocurrency in the world will continue its upward trajectory in 2025, possibly reaching a price range of between $200,000 (€193,000) and $250,000 (€241,000).
Read Also: How is a cryptocurrency exchange different from a cryptocurrency wallet?
What Could Trump Signify For Regulation Of Crypto?
The ambiguity around rules and the enforcement strategy of the U.S. Securities and Exchange Commission (SEC) has been one of the major issues facing the cryptocurrency industry in recent years.
Trump promised the bitcoin and cryptocurrency sectors throughout his campaign that he would create a "Strategic National Bitcoin Stockpile" and dismiss SEC Chair Gary Gensler on the first day of his administration. Trump has suggested crypto enthusiast Paul Atkins to lead the agency after Gensler resigned.
There is no assurance that markets will receive what they desire or when they desire it, even while they wait for regulatory certainty.
The Bitcoin bull market may continue.
Must Know: How can I invest in cryptocurrency in USA?
The regulatory tailwind in the US
The main causes of the 2024 spike in Bitcoin's price were regulatory changes. In February, its price had a significant upswing, breaking over the crucial barrier level of $52,000 (€50,200).
Prior to the highly anticipated Bitcoin halving event in April, it came after the US Securities and Exchange Commission (SEC) approved a spot Bitcoin ETF in January.
Up until November, when Donald Trump won the US presidential election, Bitcoin fluctuated between $52,000 and $72,000 (€69,600).
Investor sentiment was raised by Trump's promise to enact laws that would benefit cryptocurrency, particularly his claim that he would turn America into the "crypto capital of the world."
Early in December, Bitcoin crossed the key $100,000 (€96,600) mark after Trump declared that he will choose pro-crypto former SEC commissioner Paul Atkins as the new SEC chair.
Analysts are optimistic about Bitcoin's prospects in 2025.
Josh Gilbert, a markets analyst with eToro Australia, stated, "That performance is likely to continue in 2025; we will have a clearer regulatory environment and we are seeing institutional capital come to the table in a more significant manner than we have ever seen."
In 2025, the practices of the Trump administration may still give cryptocurrency regulatory advantages. In December, the US president reaffirmed the country's intention to include Bitcoin in its strategic reserves. If this occurs, Charles Schwab, an investing company, predicts that Bitcoin will hit $1 million.
The president-elect stated at a conference in July that owning Bitcoin would provide "a permanent national asset to benefit all Americans." Over a five-year period, Senator Cynthia Lummis proposed buying no more than 200,000 Bitcoin tokens every year, or around 1% of the entire supply.
The maximum number of Bitcoin tokens that may be produced, according to its mining method, is 21 million. According to a Reuters article, the US government would sell part of its gold holdings to acquire the money to purchase Bitcoins, even if the idea did not specify how it would pass the legal procedure.
Risks of a short-term retreat
Must Read: Is Cryptocurrency Safe? How to Safely Invest in Crypto?
Will Altcoins Experience the Bitcoin Rally?
By submitting proposals for ETFs linked to other cryptocurrency currencies, such XRP (XRPUSD), financial institutions are already embracing a possibly more lenient regulatory climate. These applications go beyond the ones that were previously authorized for bitcoin and ether.
However, it's still unclear if altcoins—cryptocurrencies that aren't bitcoin—will join the party.
The Bitcoin Dominance Index, which gauges the cryptocurrency's total market dominance, just reached all-time highs for this cycle.
According to Seth Ginns, managing partner of CoinFund and head of liquid investments, "historically bitcoin dominance has been cyclical," as reported by Investopedia. "We’d expect a handoff to alts once bitcoin gets meaningfully above its all-time high, as happened in the last cycle."
With $100,000 in virtual cash, compete risk-free.
Use our free stock simulator to test your trading prowess. Trade your way to the top by competing with hundreds of other Investopedia traders! Before putting your personal money at risk, make trades in a virtual setting. Develop your trading techniques so that you have the necessary experience when you're ready to join the actual market. Check out our Stock Simulator now.