$Bitcoin (BTC.CC)$ Having experienced a historic year, it has risen 135.7% since the beginning of 2024, successfully breaking through the 0.1 million dollar mark. However, in the view of analysts, this is not the end, and it is expected that this cryptocurrency will maintain this momentum in 2025.
Despite the Federal Reserve releasing hawkish signals on Wednesday, causing Bitcoin to briefly drop below $0.1 million, it quickly recovered most of its losses.
The rapid rise of cryptocurrencies can be attributed to several significant events, such as the approval of Bitcoin spot ETFs in the USA at the beginning of 2024 and the pro-crypto victory of Trump in the USA presidential election.
According to CoinGecko, as of July, governments around the world hold 2.2% of the total Bitcoin supply, equivalent to 471,380.6 Bitcoins, valued at $32.7 billion, with the USA holding over 0.2 million Bitcoins.
Traders are now full of anticipation for next year as analysts expect institutional capital flow to continue driving the development of Digital Currency.
Augustine Fan, head of SOFA Insights, stated: "Due to the Federal Reserve's dovish policies, the strong performance of the USA economy, robust stock market sentiment, substantial changes in USA cryptocurrency regulation and narrative, sustained traditional capital inflows, and ongoing tariff and Forex pressures on Emerging Markets currencies, Bitcoin should have a strong start in 2025."
Geoff Kendrick, the Head of Cryptocurrency Research at Standard Chartered Bank, stated in a report that by the end of next year, the inflow of institutional funds into Bitcoin could push its value to $200,000.
Trump's victory accelerated the surge of Bitcoin, as the incoming president chose cryptocurrency supporter Paul Atkins to lead the USA Securities and Exchange Commission, causing Bitcoin to break the $100,000 threshold.
"A series of senior appointments by incoming president Trump that support cryptocurrencies signal a rapid shift in the USA's cryptocurrency landscape. We will look for significant milestones in several areas, including clear regulatory clarity, venture capital returning to the cryptocurrency space, etc., marking a structural turning point for mainstream cryptocurrency adoption. The year 2025 is likely to be a year for integration with traditional finance (TradFi)," Fan added.
$MicroStrategy (MSTR.US)$ Companies have been frantically purchasing Bitcoin, and more and more companies have been seeking to join this trend, increasing the number of enterprises adopting Cryptos.
Fan also expects that significant structural developments in cryptocurrency Options will become the next explosive growth catalyst after perpetual Futures.
Nick Ruck, head of LVRG Research, stated: "The new government in the USA has indicated that it will protect and attempt to promote the development of the cryptocurrency Industry. Although Bitcoin has reached $100,000 and entered unknown territory, many Analysts and traders believe that $200,000 to $250,000 is the next key level for Bitcoin to reach."
However, cryptocurrencies may also have certain drawbacks.
Fan stated: "Downward concerns may arise from the unwinding of current leverage accumulation, with the most obvious example being MicroStrategy's long position in Bitcoin. As stock prices and the overall prosperity of Technology companies flourish, FOMO sentiment has emerged, and we have already begun to see a lot of realized volatility as both sides' leverage positions are squeezed out." He added that the continued strengthening of Bitcoin's dominance is concerning for the health of the entire cryptocurrency landscape.
Fan added that unexpected disappointment in policy measures and the pause in MicroStrategy's high-risk bets may lead to significant liquidation pressure in the first quarter, while the selling pressure brought by large-scale token unlocks may remind us of the current shortcomings in token economics design.
However, Ruck believes that apart from common political and macroeconomic events like trade wars, the potential negative impacts are now limited.
BTSE Chief Operating Officer Jeff Mei believes that Bitcoin could reach the $0.125 million mark by the end of 2025, adding, "While some say that the recent rise in Bitcoin over the past month has already been digested, we believe the rebound has just begun."
Mei added that there are many bullish reasons given Trump's support for Cryptos, ongoing rate cuts, and China's stimulus spending.
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