The rise of cryptocurrency: How high could Bitcoin go in 2025?
Bitcoin experienced a 150% rally in 2024, positioning itself as one of the top market performers in the year. This can be attributed to three bullish factors - regulatory optimism, an improved macro environment, and mounting investor enthusiasm.
Looking ahead, the world’s largest cryptocurrency is expected to extend its bullish trend in 2025, with analysts projecting it may reach a price range of between $200,000 (€193,000) and $250,000 (€241,000).
Bitcoin has historically reached fresh highs every 4 years during its past two bullish cycles since 2017. Each cycle saw gains of 2300% and 1700% before setbacks of between 70% and 80%.
Since its low of $16,000 (€15,500) two years ago, Bitcoin has surged approximately 600%, indicating substantial potential for further growth in the coming two years.
Tom Lee from Fundstart Global Advisors predicts Bitcoin could reach $250, 000 in 2025. The Standard Chartered projects the price to hit $200,000 next year.
Cryptocurrencies generally tend to move in a bullish trend during the easing monetary cycles of central banks. Investors’ appetite for risky assets typically grows in environments of increased liquidation and expanding money supply.
With the world’s major central banks expected to continue cutting interest rates in 2025, prevailing risk-on sentiment is likely to support further gains for Bitcoin.
Regulatory developments were the primary drivers of Bitcoin’s price surge in 2024. Its price saw a substantial rally, surpassing the critical resistance level of $52,000 (€50,200) in February.
It followed the US Securities and Exchange Commission (SEC)’s approval of a spot Bitcoin ETF in January, ahead of the much-anticipated Bitcoin halving event in April.
Bitcoin traded between $52,000
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