Bitcoin (BTC) and the cryptocurrency market have capped a hugely successful 2024, with analysts, traders, and institutions optimistic about 2025 and further price increases. BTC saw a considerable rally at the beginning of the year following the approval of spot Bitcoin ETFs, which sparked interest in the asset. This was followed by the Bitcoin halving event, slashing the number of BTC awarded to miners, creating an imbalance between demand and supply, sending the price higher. Donald Trump’s victory in November acted as the catalyst needed for BTC to cross the $100,000 mark for the first time.
Trump’s victory is being seen as a game-changing development for the crypto industry, with the President-elect making several promises on the campaign trail, including creating a strategic Bitcoin reserve. Trump has also nominated Paul Atkins, known for his crypto-friendly views, as SEC Chair. However, markets have adopted a wait-and-watch stance. Delphi Ventures General Counsel Sarag Brennan stated,
“Trump’s stance on [decentralized finance (DeFi)] and crypto has been somewhat inconsistent. While he has expressed interest in the space, much of his focus seems limited to supporting dollar dominance and real estate applications.”
Now, let’s talk about BTC. Analysts expect the world’s largest cryptocurrency to reach $200,000, while VanEck has taken a slightly conservative stance, predicting it will reach $180,000. While such predictions have been made in the past, BTC’s jump above $100,000 shows nothing is out of reach for the asset. With the asset approaching its 21 million limit, demand is picking up and will send its price surging. Some economists and analysts have called BTC’s current price action a “supercycle.” However, the Federal Reserve could crash the BTC party after significantly scaling back rate cuts for 2025 and going on record to state it is not allowed to hold BTC.
But will BTC’s rally spill over to altcoins? Analysts and market watchers expect friendlier regulations. This is why many institutions have already sent applications for ETFs related to major altcoins like XRP, indicating the market is ready to shift beyond BTC and ETH.
VC Funding To Be Stronger In 2025
According to PitchBook analyst Robert Le, VC funding will be significantly stronger in 2025 compared to 2024. According to Le, 2023 was a challenging year for crypto funding due to several market factors, including the collapse of FTX, which led to an erosion of trust and higher interest rates. However, 2024 started positively, with markets picking up momentum following the launch of spot Bitcoin ETFs.
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