Bitcoin’s price experienced significant swings in December after failing to sustain a position above $100,000. However, according to ARK Invest, these fluctuations were not unusual when viewed in a broader context.
In its December edition of The Bitcoin Monthly report, ARK Invest analyzed Bitcoin’s monthly and yearly realized volatility—a key metric assessing the intensity of price changes over time. While the final quarter of 2024 saw a noticeable uptick in volatility, ARK noted that this increase was relatively mild when compared to historical trends.
A chart included in the report highlighted that Bitcoin’s monthly volatility in December remained modest compared to its yearly averages.
This subdued level of relative volatility suggests that Bitcoin has not yet entered the mania phase often seen during market cycles. Consequently, there appears to be ample room for further upward momentum, particularly in the context of a bullish market.
“These observations indicate potential for continued market growth throughout 2025,” ARK stated in the report.
The report also pointed to other positive indicators for Bitcoin, including rising mining difficulty, strong holder behavior, and a solid short-term holder cost basis.
Notably, ARK highlighted that 62% of Bitcoin’s supply had remained dormant for over a year, even as the cryptocurrency surged by more than 100% in 2024. This resilience among long-term holders underscores the market’s strength and optimism heading into 2025.
Trump Administration Sparks Optimism in Crypto Markets
Bitcoin soared past the $100,000 mark in December, fueled in part by anticipation surrounding the election of Donald Trump. Trump campaigned on a promise to position the United States as a global leader in Bitcoin and cryptocurrency innovation.
As president-elect, Trump announced key pro-crypto appointments, including Paul Atkins to lead the Securities and Exchange Commission and David Sacks as a senior adviser on cryptocurrency and artificial intelligence. These decisions were widely applauded within the crypto community.
Pantera Capital projects that the incoming Trump administration will further legitimize Bitcoin and cryptocurrencies, potentially driving prices to unprecedented highs in the coming months.
According to a report from The Washington Post, Trump is expected to sign executive orders prioritizing cryptocurrency on his first day in office, January 20. These actions are anticipated to clarify and enhance the role of crypto in U.S. economic policy, further boosting confidence in the market.
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