What To Expect From Bitcoin and Crypto Markets In 2025 | Global News Avenue

The cryptocurrency market has had an extraordinary year, and with a new administration taking office in Washington, D.C., market participants are optimistic about the outlook for 2025, although plenty of uncertainty remains.

Bitcoin (Bitcoin USDBitcoin rallied at the start of the year on the back of explosive demand for a newly launched spot Bitcoin exchange-traded fund (ETF). Soon after, a Bitcoin HalvingSlowing down the creation of new Bitcoins, creating an imbalance between supply and demand, causing prices to surge further.

The election of Donald Trump, along with several crypto-friendly lawmakers, has given Bitcoin another boost in recent weeks, helping the digital currency’s price cross the $100,000 mark for the first time.

Here’s what market participants will be watching for in the coming year.

What does Trump mean for cryptocurrency regulation?

One of the biggest concerns in the cryptocurrency market in recent years has been the lack of clarity from regulation and the U.S. Securities and Exchange Commission (SEC) implement method.

Trump proposed many initiatives during the campaign Commitment to Bitcoin and the Crypto Industryincluding that he will fire SEC Chairman Gary Gensler on his first day in office and establish a “National Strategic Bitcoin Reserve.’ Gensler decided Step down Trump has recommended Cryptocurrency advocate Paul Atkins serves as the head of the agency.

Even as markets await regulatory clarity, there is no guarantee they will get what they want or when they will get it.

“Trump’s stance on (decentralized finance (DeFi)) and cryptocurrencies is somewhat inconsistent,” Delphi Ventures general counsel Sarah Brennan told Investopedia. “While he has expressed interest in the space, much of his Attention seems limited to support for U.S. dollar dominance and real estate applications. The Bitcoin Dominance Index measures Bitcoin’s share of the overall cryptocurrency market valuation. Recently set a new high.

Castle Island Ventures partner Nic Carter said the focus of the legislation will be to allow Stablecoin The legislation was passed first. The focus will then turn to the Cryptocurrency Market Structure Bill, which will clarify which crypto assets are commodities and which are securities.

Bitcoin price predictions and drivers

Analysts at Bitwise expect the price of Bitcoin to reach $200,000 by the end of 2025, while analysts at VanEck put it at $180,000.

Such a prediction is bitcoin price It’s been done many times in the past but seemed too ambitious. With Bitcoin surging above $100,000, they may not seem so far-fetched now.

only 21 million Bitcoins can be created, 19.79 million of which are already in circulation. Despite the limited supply of Bitcoin, demand for it has picked up.

There is growing demand for Bitcoin from institutional investors including ETF sponsors, corporations and nation states. Investors have poured $36 billion into spot Bitcoin ETFs. MicroStrategy (Magnetic transmission technology), a leader in listed company holdings Bitcoin on the ledgerAs of December 23, there were 444,262 coins held, worth approximately US$42 billion.

Historically, Bitcoin, and the cryptocurrency market as a whole, has risen and fallen in line with the four-year Bitcoin movement. Halving cycle. If this cycle continues, the cryptocurrency market will correct in 2025. But the presence of large institutional investors could limit any downturn.

Alex Kruger, an economist and founder of Asgard Markets, said that Bitcoin is in a “super cycle,” which means “20%-40% corrections are common” rather than “85% retracements.”

The Fed could also spoil Bitcoin’s festivities. central bank recently downsized Its expectations of an interest rate cut in 2025 have weighed on Bitcoin prices. If the Fed slows the pace of rate cuts, U.S. Treasury yields could remain high, making them more attractive to investors than riskier assets like Bitcoin.

Will Bitcoin rally spread to altcoins?

Financial institutions have already taken steps to embrace a potentially friendlier regulatory environment by sending out applications for ETFs related to other crypto-assets, such as Ripple (Ripple USD), surpassing the previously approved Bitcoin and Ethereum.

But it is unclear whether Altcoinsor non-Bitcoin cryptocurrencies, will join Bitcoin’s ranks.

The Bitcoin Dominance Index measures Bitcoin’s share of the overall cryptocurrency market, Recently set a new high for this encryption cycle.

“Historically, Bitcoin’s dominance has been cyclical,” Seth Ginns, managing partner and head of liquid investing at CoinFund, told Investopedia. “We expect that once Bitcoin trades significantly above its all-time highs, like the last As cycles happen, there will be a shift toward alternatives.”