Bitcoin has seen a remarkable surge in 2024, with a 150% rally that has solidified its position as one of the best-performing assets of the year. This impressive growth is largely attributed to three key factors: regulatory optimism, a more favorable macroeconomic environment, and growing investor enthusiasm.
Looking ahead to 2025, analysts predict that Bitcoin could see even further growth, with projections suggesting it could reach between $200,000 (€193,000) and $250,000 (€241,000). Historically, Bitcoin has reached new highs every four years during its previous bullish cycles since 2017, with each cycle experiencing gains of 2300% and 1700%, followed by setbacks of 70% to 80%.
From its low of $16,000 (€15,500) two years ago, Bitcoin has surged nearly 600%, signaling substantial potential for additional growth in the next two years. Tom Lee from Fundstart Global Advisors forecasts Bitcoin could hit $250,000 in 2025, while Standard Chartered expects the price to reach $200,000.
Cryptocurrencies, including Bitcoin, typically perform well during periods of easing monetary policies from central banks, as investors tend to favor riskier assets when there is an increase in liquidity and an expanding money supply. With the world’s major central banks expected to continue lowering interest rates in 2025, Bitcoin’s bullish momentum is likely to persist.
Bitcoin’s dramatic rally in 2024 was driven in large part by regulatory developments. Its price surpassed the critical $52,000 (€50,200) resistance level in February, following the approval of a spot Bitcoin ETF by the US Securities and Exchange Commission (SEC) in January. The cryptocurrency continued its upward trajectory through November, fueled by optimism surrounding the US presidential election. Donald Trump’s victory and his pro-crypto stance, including his declaration to make America the “crypto capital of the planet,” significantly boosted investor sentiment.
In December, Bitcoin crossed the psychological barrier of $100,000 (€96,600) after Trump announced plans to nominate Paul Atkins, a former SEC commissioner with a pro-crypto stance, as the next SEC Chair. “That performance is likely to continue in 2025, we will have a clearer regulatory environment and we are seeing institutional capital come to the table in a more significant manner than we’ve ever seen,” said Josh Gilbert, a market analyst at eToro Australia.
Trump’s administration may continue to provide regulatory support for cryptocurrencies, with the US president reiterating plans to include Bitcoin in the country’s strategic reserves in December. Charles Schwab predicts Bitcoin could reach $1 million if this proposal is realized.
At a July conference, Trump indicated that holding Bitcoin could create “a permanent national asset to benefit all Americans.” Additionally, Senator Cynthia Lummis proposed that the US government could purchase up to 200,000 Bitcoin tokens annually over five years. Bitcoin’s maximum supply is capped at 21 million tokens, and while details of the legal process remain unclear, it is speculated that the US could use funds from gold reserves to facilitate Bitcoin purchases.
Despite the long-term bullish outlook, Bitcoin’s recent price retreat from a high of over $108,000 (€104,300) in mid-December to around $94,000 (€90,800) is indicative of profit-taking and a risk-off sentiment. This decline coincides with a pullback in global stock markets.
In the short term, Bitcoin’s support level appears to be around $90,000 (€87,000). A drop below this could lead to further declines, with the next target around $73,000 (€70,500). However, many investors remain optimistic about Bitcoin’s future as pro-crypto policies take shape.
