The rise of cryptocurrency: How high could Bitcoin go in 2025?

Bitcoin’s stunning gains this year have been attributed to optimism surrounding US regulatory developments. Analysts predict the cryptocurrency may have significantly more room for growth in 2025.

Bitcoin experienced a 150% rally in 2024, positioning itself as one of the top market performers in the year. This can be attributed to three bullish factors – regulatory optimism, an improved macro environment, and mounting investor enthusiasm.

Looking ahead, the world’s largest cryptocurrency is expected to extend its bullish trend in 2025, with analysts projecting it may reach a price range of between $200,000 (€193,000) and $250,000 (€241,000).

The bullish Bitcoin cycle may continue

Bitcoin has historically reached fresh highs every 4 years during its past two bullish cycles since 2017. Each cycle saw gains of 2300% and 1700% before setbacks of between 70% and 80%.

Since its low of $16,000 (€15,500) two years ago, Bitcoin has surged approximately 600%, indicating substantial potential for further growth in the coming two years.

Tom Lee from Fundstart Global Advisors predicts Bitcoin could reach $250, 000 in 2025. The Standard Chartered projects the price to hit $200,000 next year.

Cryptocurrencies generally tend to move in a bullish trend during the easing monetary cycles of central banks. Investors’ appetite for risky assets typically grows in environments of increased liquidation and expanding money supply.

With the world’s major central banks expected to continue cutting interest rates in 2025, prevailing risk-on sentiment is likely to support further gains for Bitcoin.

The US regulatory tailwind

Regulatory developments were the primary drivers of Bitcoin’s price surge in 2024. Its price saw a substantial rally, surpassing the critical resistance level of $52,000 (€50,200) in February.

It followed the US Securities and Exchange Commission (SEC)’s approval of a spot Bitcoin ETF in January, ahead of the much-anticipated Bitcoin halving event in April.

Bitcoin traded between $52,000 and $72,000 (€69,600) until November, when Donald Trump’s victory in the US presidential election catalysed further gains.

Trump’s pledge to implement crypto-friendly policies, including his statement that he would make America the “crypto capital of the planet”, boosted investor sentiment.

Bitcoin topped the psychological threshold of $100,000 (€96,600) in early December after Trump announced plans to nominate Paul Atkins, a pro-crypto former SEC commissioner, as the next Chair of the SEC.

Analysts upbeat on Bitcoin prospects for 2025

“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 markets analyst at eToro Australia.

The Trump administration’s policies could continue providing regulatory tailwinds for cryptocurrencies in 2025. The US president reiterated its plan to adopt Bitcoin as part of the US strategic reserves in December. The investment firm Charles Schwab expects Bitcoin to reach $1 million if this happens.

At a July conference, the president-elect said Bitcoin holding would create “a permanent national asset to benefit all Americans.” Senator Cynthia Lummis outlined the purchase of not more than 200,000 Bitcoin tokens annually over five years, or approximately 1% of the total supply.

Based on its mining mechanism, Bitcoin has a maximum supply limit of 21 million tokens. Although the proposal did not clarify how it would pass the legal process, the US government could sell some of its gold reserves to raise the funds to buy Bitcoins, according to a Reuters report.

Near-term retreat risks

Nonetheless, the long-term view may not alter the near-term correction risk. Bitcoin price has retreated sharply from an all-time high of above $108,000 (€104,300) in mid-December to the current $94,000 (€90,800) level.

This is likely driven by profit-taking and risk-off sentiment. This decline coincides with a pullback in global stock markets over the past two weeks.

Until the incoming Trump Administration implements clear pro-crypto policies, some investors may choose to lock in their 2024 gains.

From a technical perspective, Bitcoin’s immediate support level appears to be around $90,000 (€87,000). A breakdown below this level could see the cryptocurrency testing the next target of approximately $73,000 (€70,500).