Bitcoin has seen record highs over the last few months. Yet this Bitcoin price rise has been extremely volatile as of late. We discuss if the run has ended or if it will continue into 2025.
There have been many trials and tribulations with Bitcoin over the last few months. From record highs to potential institutional backing, even the hardiest of investors are struggling to keep up with the coin. But will its meteoric rise continue into 2025? We discuss it in the article below.
Bitcoin Remains Head of the Table
Bitcoin remains the world's largest cryptocurrency by market capitalization. It currently has a market cap of $1.8 trillion, half the value of all crypto in circulation. During 2024 the value of the coin rose massively. A rise of 120% was seen during the previous year, followed by a brief tail off and then another rally. The Bitcoin price today shows that it is still going up. This has led to a tenuous position, with Bitcoin possibly set for record highs and a new bull run, but with investors treading carefully.
There are several factors that continue to make Bitcoin a very attractive prospect. Mainly, this is down to its decentralised nature. It is not owned by any institution or government. Running on a secure system known as a blockchain, it also has a fixed supply of coins. This totals 21 million, with many still being created, known as the process of mining.
Bitcoin, and other cryptocurrencies, will undoubtedly hold more value if they are adopted into mainstream use and finance further. There are still very few merchants and businesses that accept cryptocurrency and Bitcoin as a form of payment. Even today, just under 8000 companies worldwide accept it as a form of payment. Most of these are related to digital services and entertainment. Thus, it may still be some time before you can go into a store and pay for groceries using Bitcoin.
Even US states have begun to discuss cryptocurrency as a way to invest their money. Oklahoma is one state that is considering a strategic Bitcoin reserve. It is hoped this will position the state at the cutting edge of monetary policy. Named House Bill 1203, it will see the state pensions and savings accounts invested in digital assets. It has been announced it will be managed to meet the needs of fund managers, creating a reliable return for citizens. It is also believed to be a measure against current inflationary pressures.
At the forefront of this is Rep. Cody Maynard, who wants to use technology to empower governments and individuals. He believes the decentralised nature and finite supply of Bitcoin represent a chance to ensure sustainable growth for many years to come. The act will be considered in February. If the motion is passed, it will then come into effect as of November 2025.
Other Cryptocurrencies Also Rebounding
Bitcoin is not the only cryptocurrency to have had a boost over the past few days. Ethereum and XRP, the other two leading cryptocurrencies, have also seen a spike in their value. Up in both the daily and weekly charts, this has been bolstered by positive sentiment from governments on both sides of the Atlantic. In the United Kingdom, the Financial Conduct Authority has discussed laying out plans for cryptocurrencies and digital assets. This shows that crypto is being taken seriously and signals more mainstream adoption.
Inflation has also dropped off a little, which has fuelled the price of crypto. It rose only 0.2% in the month of December. This had an immediate overall 1.3% rise in the crypto market, as people had a wave of economic confidence. Oddly, Bitcoin ETFs have seen a drop in trading volume despite a rise in the value of the currency. This fell to $2.23 billion in a single day, despite being $3 billion the day before.
At the time of writing, Ether is up 4% over the last week and 3% in a day. However, XRP has been the real winner. It has bounced 27% over the last week with a huge 9% in one day alone.
There are also signals that Bitcoin is repeating its 2017 bull cycle. This was a year when Bitcoin went from $200 to $20,000 in value. While each cycle has been individual, with different external factors, there are some similarities in them. The main one is that cycles tend to last around 1068 to 1060 days, judging by the last two cycles. If this is a bull cycle, it would put us at around 750 days, give or take.
Compared to the 2017 cycle, prices are also very closely aligned. The market value to realised value is also shadowing previous trends. All of this signals that we are following the same patterns. If this is true, then there would still be value to have in Bitcoin yet before it tails off. Bitcoin will always remain volatile, yet if you can weather the dips, now may be the time to buy.