bitcoin's 2024 surge and market position
in 2024, bitcoin surged by 150%, making it one of the top market performers of the year. this rise can be credited to three main factors: regulatory optimism, a more favorable macro environment, and growing investor enthusiasm.
bitcoin's 2025 price predictions
looking forward, bitcoin, the largest cryptocurrency, is expected to continue its upward trajectory in 2025, with analysts predicting it could reach a price range between $200,000 (€193,000) and $250,000 (€241,000).
bitcoin’s bullish cycles and growth potential
historically, bitcoin has reached new highs every four years during its past two bullish cycles since 2017. each cycle saw increases of 2300% and 1700%, followed by corrections of 70% to 80%.
from its low of $16,000 (€15,500) two years ago, bitcoin has increased by about 600%, showing considerable potential for further growth over the next two years.
expert predictions for bitcoin's future price
tom lee from fundstart global advisors predicts bitcoin could reach $250,000 in 2025, while standard chartered forecasts a $200,000 price point for next year.
cryptocurrency performance and central bank monetary policy
cryptocurrencies typically experience bullish trends during easing monetary cycles by central banks, as investors seek riskier assets in environments with increased liquidity and a growing money supply.
with major central banks expected to continue reducing interest rates in 2025, the prevailing risk-on sentiment is likely to support further bitcoin gains.
regulatory developments supporting bitcoin's surge in 2024
regulatory developments have been key to bitcoin’s price surge in 2024. the price saw a significant rally, breaking through the important resistance level of $52,000 (€50,200) in february.
this occurred after the us securities and exchange commission (sec) approved a spot bitcoin etf in january, ahead of the highly anticipated bitcoin halving event in april.
bitcoin traded between $52,000 and $72,000 (€69,600) until november, when donald trump's victory in the us presidential election led to further gains.
trump's promise to implement crypto-friendly policies, including making america the "crypto capital of the planet," boosted investor sentiment.
bitcoin surpassed the psychological barrier of $100,000 (€96,600) in early december after trump announced plans to nominate paul atkins, a former sec commissioner who is pro-crypto, as the next sec chair.
analysts optimistic for bitcoin in 2025
josh gilbert, a markets analyst at etoro australia, stated, “that performance is likely to continue in 2025, as we will have a clearer regulatory environment, and institutional capital is entering the space in a more significant way than ever before.”
the trump administration’s policies may continue to provide regulatory support for cryptocurrencies in 2025. in december, trump reaffirmed plans to incorporate bitcoin into the us strategic reserves. charles schwab, an investment firm, predicts that bitcoin could reach $1 million if this occurs.
in july, the president-elect mentioned that bitcoin holdings could create "a permanent national asset to benefit all americans." senator cynthia lummis proposed purchasing up to 200,000 bitcoin annually over five years, or about 1% of the total supply.
given bitcoin's mining mechanism, there is a maximum supply of 21 million tokens. although the proposal did not clarify the legal process, reports suggest the us government could sell some of its gold reserves to finance bitcoin purchases.
near-term risks and correction potential for bitcoin
despite the long-term positive outlook, there are near-term correction risks. bitcoin’s price has recently dropped sharply from an all-time high of over $108,000 (€104,300) in mid-december to around $94,000 (€90,800).
this decline is likely due to profit-taking and a risk-off sentiment, coinciding with a pullback in global stock markets over the past two weeks.
until the new trump administration implements clear pro-crypto policies, some investors may choose to lock in their 2024 gains.
from a technical standpoint, bitcoin’s immediate support level appears to be around $90,000 (€87,000). if it falls below this level, it may test the next support at approximately $73,000 (€70,500).