2024 marked a transformative year for Bitcoin. The approval of the first Bitcoin spot ETFs in the United States, the cryptocurrency’s record-breaking all-time high, and the occurrence of the fourth Bitcoin halving in April all contributed to its rise.
Currently, Bitcoin’s price has surpassed $84,000, reflecting a 142% increase since the start of the year and a 60% jump since Donald Trump’s election victory on November 5.
With a market capitalization reaching an astounding $2.1 trillion (£1.7 trillion), Bitcoin’s ascent shows no signs of slowing. But what’s next for the cryptocurrency in the coming year? Analysts are weighing in.
Trump’s Influence on Bitcoin
Donald Trump’s return to the White House has been a significant factor in Bitcoin’s recent surge.
“The new Trump administration could serve as a major positive driver for the crypto industry and blockchain assets,” stated Pieran Maru, a fund manager at Liontrust.
Trump’s previous criticism of Bitcoin, including calling it a “scam” and suggesting its value was “based on thin air,” has made way for a complete reversal. During his campaign, he pledged to establish the United States as “the crypto capital of the world.”
This shift is further underscored by his appointment of crypto advocate Paul Atkins as the new chair of the US Securities and Exchange Commission (SEC). Analysts expect this change to bring a more favorable regulatory framework for cryptocurrencies and clearer guidelines for the industry.
Adding to the optimism are rumors that Washington is considering the establishment of a strategic Bitcoin reserve, a move that could significantly bolster Bitcoin’s valuation and demonstrate government backing for the asset.
Institutional Adoption on the Rise
The abandonment of plans for central bank digital currencies (CBDCs) by global monetary authorities has removed a potential obstacle for Bitcoin’s growth. This development, coupled with the integration of Bitcoin into mainstream finance, has solidified its position as a legitimate asset class.
“The introduction of spot Bitcoin ETFs has opened the door for institutional investors, such as pension funds and banks, to gain exposure to the cryptocurrency,” noted John Plassard, senior investment specialist at Mirabaud Group.
Spot Bitcoin ETFs currently hold approximately 1.1 million Bitcoin, accounting for nearly 6% of the total supply. BlackRock recently highlighted that including Bitcoin in a portfolio with a 1% to 2% allocation could provide a risk-return profile comparable to major tech stocks.
Even regulators appear to be softening their stance on Bitcoin. While the SEC under Trump’s leadership is expected to adopt a pro-crypto approach, the UK’s Financial Conduct Authority has also shown signs of easing its traditionally negative outlook.
Bitcoin’s Price Trajectory
“With Bitcoin reaching $106,000 and Tesla gaining 77% since November 5, there’s an undeniable momentum in play,” observed Richard de Lisle, manager of the VT De Lisle America Fund.
While analysts agree that such dramatic upward momentum can’t sustain indefinitely, a sharp decline akin to past cryptocurrency cycles might not be imminent.
“Bitcoin’s unique HODL culture, driven by its capped supply of 21 million coins and its status as a store of value, underpins its resilience,” explained Maru. Over 60% of Bitcoin has remained unsold for more than a year, highlighting the community’s commitment.
The divergence between Bitcoin and gold has also become apparent post-election. Historically correlated, the two assets now appear to be charting separate paths, with Bitcoin aligning more closely with tech stocks such as Tesla.
“Past trends suggest that once an asset achieves escape velocity, its momentum lasts only if it proves to have lasting value,” noted de Lisle. “Investors should consider whether Bitcoin’s current peak mirrors the interim highs seen in 2017 or 2021.”
The divide between younger and older investors remains stark, fueling ongoing debates about Bitcoin’s long-term role as a financial asset. What’s clear is that Bitcoin’s journey in 2025 and beyond will continue to captivate markets and redefine the financial landscape.
For more news, find me on Twitter Giannis Andreou and subscribe to My channels Youtube and Rumble
What is your opinion on this particular topic? Leave us your comment below! We are always interested in your opinion!
