2024 was a strong year for Bitcoin, and the impressive performance of the pioneering crypto will likely continue in 2025 as well. Bitcoin went through a tumultuous time, shedding around 65% of its market value throughout 2023, and crypto enthusiasts had to face unexpected events like FTX decline, Terra Luna crash, and macroeconomic factors, but despite all the challenges, the crypto market successfully recovered towards the end of the year, with Bitcoin rising from the ashes, and showing promising growth.
The leading cryptocurrency surged to massive heights, and on December 3, it surpassed the much-anticipated $100,000 mark, fueled Donald Trump’s announcement that he wants to nominate Atkins – a crypto advocate- to run the SEC. Trump has made very positive statements on the cryptocurrency landscape, proposing the creation of a strategic reserve of Bitcoin. In recent years, the crypto king has become increasingly popular among institutional investors, cementing its status as a mainstream digital currency and challenging the perceptions of skeptics in the financial world. With Trump winning the election, the future of Bitcoin looks brighter than ever.
A look into the recovery journey of Bitcoin
After exceeding the $31,000-mark, Bitcoin experienced a bearish trend, trading below the $30K level for most of 2023, but in the latter months of the same year, it showcased an incredible recovery. The leading crypto asset increased about 164.96% in one year, and crypto experts believed that if it could maintain a level of $30,000, it could bounce back from there. And while Bitcoin did exceed its all-time high in March, it experienced a downtrend later.
Looking back at Bitcoin’s recovery journey, in April 2023, the asset achieved the key resistance of the $30,000 level, representing a milestone that marked one of its greatest performances since June 10, 2022. While no one can guarantee how things will unfold for Bitcoin in the future, retail investors should exercise caution when getting started with Bitcoin, given its tumultuous past.
How did Bitcoin perform in 2024?
Bitcoin has recently surpassed the $100,000 mark – a performance that everyone has long been waiting for. Experts predicted the bullish scenario for Bitcoin, but many on Wall Street didn’t not believe it would be possible for the cryptocurrency to achieve this target in 2024. And yet, Bitcoin is up more than 140% in 2024, showcasing its resilience and potential once again.
The Spot Bitcoin ETFs have represented a substantial factor in the growth of Bitcoin throughout the year, as after their approval, retail investors showed massive interest, and as a result, Bitcoin succeeded in surpassing its all-time high. But the halving event was also positive for the price of Bitcoin because it helped contract supply. The fourth halving occurred on April 20, cutting the supply growth rate of Bitcoin to about 1.75%, and it’s an event that will continue until the limit of 21 million coins mined is reached (this is estimated to happen sometime in 2140).
Bitcoin’s performance in 2024 is also closely linked with the presidential election. Donald Trump has been a proponent of Bitcoin ever since 2013, and he has recently pledged for a strategic reserve of Bitcoin, but it’s worth noting that this isn’t a new idea. A bill was proposed this summer by a Trump ally, mandating the Treasury secretary to buy no more than 200,000 bitcoins a year throughout five years, accounting for one million bitcoins, and holding onto them for at least 20 years. Crypto enthusiasts believe the reserve is a good idea, as it would position the US as a global leader in the world of digital assets, which they believe to be the future of the financial system.
Predictions for 2025: Is it possible for Bitcoin to reach $200,000?
Bitcoin is currently experiencing an exponential growth curve, and as more people are joining its network, its value only continues to rise to new heights, further placing more demand on it. As the world governments endorse Bitcoin, this will only cement the enduring resilience of the pioneering cryptocurrency. The endorsements are happening fast – for instance, Nayib Bukele, the millennial president of El Salvador, has invested in Bitcoin in 2021, making a significant profit of $300,000,000. In 2021, El Salvador was also the first country to embrace the pioneering crypto as a legal tender, but interestingly, global governments hold over two percent of Bitcoin on a global level, and this figure is only expected to grow.
A clearer regulatory framework and making Bitcoin a strategic reserve will likely be a game-changer for the growth of the cryptocurrency industry, and the forecasts are bullish when it comes to the price of Bitcoin, which could go as high as $200, 000 by 2025. Furthermore, investors and institutions increasingly see Bitcoin’s potential as a hedge against inflation, which further makes the possibility of the asset reaching unprecedented growth more conceivable.
Despite the optimistic scenario, investors should prepare for volatile swings
While Bitcoin’s path looks clear when it comes to hitting the 200,000 target, or more, it’s worth remembering that the asset hasn’t had a smooth journey in the past and will likely continue to endure some volatile swings before it reaches new heights. So, instead of following the bulls blindly, we recommend assessing risks and developing a plan when buying BTC – this will help you have a safer and overall more enjoyable experience when navigating the crypto market.
You have probably heard of this rule before but be sure to assess your financial situation and only put into BTC the money you are willing to lose. Trading smartly is necessary if you don’t want to expose yourself to unnecessary risks that will lead to losses rather than gains. So, make smart decisions, and stay reasonable, and always remember to do your research.
Takeaway
Among the different Bitcoin predictions, the conclusion is that the asset has seen many downfalls throughout time, yet it has always emerged stronger than before. Its resilient nature instills confidence in crypto enthusiasts who believe in the long-term potential and value of decentralized currencies.
Will Bitcoin soar higher? And if yes, how high will it soar? There is no concrete answer to these questions, and only time will tell how things will unfold for the grandfather of cryptocurrencies. It would be possible for the asset to face challenges along the way, but even if that happens, historically, Bitcoin has successfully recovered, and it will likely continue to do so. However, it’s worth remembering that trading Bitcoin comes with full responsibility, and you should engage in this activity with awareness and caution, as your investment may not yield the return you anticipate. While you should definitely aim for substantial profits, keep your expectations realistic and remember that you won’t likely get rich overnight from trading Bitcoin.
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