Bitcoin’s 2024 rise shocked the globe, but with the new year just hours away, it appears to be stopping. After reaching a record high of $108,000 in mid-December, the cryptocurrency traded at $93,670 early Monday in New York, 16% below the high. Ether and Dogecoin, meme favorites, have also struggled to acquire momentum.
Bitcoin’s Surge Trump and Crypto Policies
The US election results and President-elect Donald Trump’s support for cryptocurrencies fueled the rise of BTC. Trump’s proposals to construct a national Bitcoin reserve and ease crypto regulation boosted cryptocurrency prices. He appointed Paul Atkins as the new SEC head a month later, replacing Gary Gensler, who brought over 100 crypto firm actions.
The euphoria has faded as Federal Reserve interest-rate reduction prospects have decreased, cooling financial market speculation. Pepperstone Group head of research Chris Weston said. The momentum has come from the post-election move” in Bitcoin, citing outflows from cryptocurrency exchange-traded funds.
MicroStrategy, a tech corporation turned Bitcoin accumulator, has been buying big recently. Trading analysts expect regular announcements of additional Bitcoin purchases from the corporation, which holds over $40 billion. Invezz examines the many factors that could affect Bitcoin’s price in 2025 and the milestones it could reach:
Bitcoin’s 2025 Outlook Bullish vs Caution
Analysts are confident about Bitcoin’s future despite the standstill. Galaxy Digital head of research Alex Thorn called the current drop a hiccup. Bitcoin’s 2024 Surge, Thorn expects Bitcoin to surpass $150,000 in the first half of 2025 and “test or best” $185,000 by year’s end.“Institutional, corporate, and nation-state adoption will propel Bitcoin to new heights in 2025,” Thorn said.
Bitcoin has appreciated faster than all other asset classes, including the S&P 500 and gold, and that trend will continue in 2025. Not all market observers are bullish. Following the expiration of $14 billion in options contracts, XS.com analyst Rania Gule warned on Monday that Bitcoin may fall to $85,000.
Bitcoin Price Predictions for 2025
Blockware Research predicts three Bitcoin price pathways in 2025 based on legislative and economic changes: In the worst-case scenario, long-term Bitcoin holders aggressively sell, steadily raising the price to $150,000. This happens when the Fed maintains rates higher longer if the Trump administration doesn’t adopt the Strategic Bitcoin Reserve Plan.
The bull run may stop. The SBR initiative makes Bitcoin a US reserve asset, and company acceptance and Federal Reserve rate decreases, bringing Bitcoin to $225,000 in this basic case—bull case scenario. Bitcoin rose to $400,000 due to the US government’s enormous growth: Bitcoin reserves, rapid business adoption, and exceptionally dovish Federal Reserve policies.
Summary
After the US election and President Trump’s crypto policies, Bitcoin’s impetus faded, and its 2024 climb to $108,000 slowed to $93,670. Bitcoin might hit $150,000 by mid-2025, according to Galaxy Digital, an optimistic analyst firm. Blockware Research states three possible outcomes depend on economic circumstances and adoption. Bitcoin’s 2024 Surge, A base case of $225,000, a worst-case scenario of $150,000, and a bullish $400,000 projection.
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