As 2024 comes to a close, Bitcoin (BTC) has had an impressive year, highlighted by its all-time high above the coveted $100,000.
Several catalysts have been central to this achievement, such as the entry of major Wall Street players into the cryptocurrency space alongside discourse on the asset in the political arena.
Bitcoin started the year at approximately $42,200, rallying over 136% year-to-date, marking one of its most bullish annual trends. By press time, the maiden digital asset was trading at $99,930
The year can be broken into three distinct phases. Bitcoin saw a sharp surge from January to March, breaking past $70,000. This rally was fueled by renewed investor interest and growing institutional adoption, largely driven by the approval of spot exchange-traded funds (ETFs) in the United States.
The market entered a consolidation phase from April to around September, with Bitcoin fluctuating between $60,000 and $71,000. However, October marked the start of a resurgence in momentum, with Bitcoin blasting through $80,000 and setting its sights on the critical $105,000 resistance level.
Catalysts of Bitcoin’s 2024 performance
2024 began with Bitcoin receiving a major mainstream nod following the approval of the spot ETF on January 11, a key event that helped the asset claim its record high above $70,000.
Bitcoin proponents highly anticipated the ETF, which they view as a gateway to institutional investors. To this end, BlackRock’s (NYSE: BLK) iShares Bitcoin Trust (IBIT), with $50 billion in assets, has been one of the notable ETFs.
Although there remains some skepticism regarding Bitcoin, especially concerning its volatility, the ETF is viewed as the asset’s gateway into the traditional finance sector.
From there, Bitcoin’s price compressed but experienced an uptick in interest as the asset gained more attention in the political scene around the November U.S. presidential elections.
The chatter was initiated after then-Republican nominee Donald Trump attended the Bitcoin Conference in Nashville, where he made several promises, including the contentious one of making the digital asset part of the strategic reserve.
At the same time, Trump, now the president-elect, promised to replace Securities and Exchange Commission (SEC) Chair Gary Gensler, who the crypto community has criticized for allegedly stifling the sector’s growth.
Interestingly, Gensler has since announced his resignation from the regulator, with Trump nominating pro-crypto Paul Atkins. This move partly contributed to Bitcoin surpassing $100,000.
Generally, Trump’s election and intentions to implement some of his crypto promises have contributed to Bitcoin’s newfound momentum.
What next for Bitcoin in 2025
Looking ahead, there remains positive sentiment surrounding Bitcoin, especially regarding its price movement. As reported by Finbold, banking giant Standard Chartered analyst Geoff Kendrick predicted that Bitcoin is likely to trade at $200,000 in 2025, driven by institutional capital inflows into the asset.
Of interest is that the bank accurately predicted that Bitcoin would trade at $100,000 before the end of 2024.
Bernstein analysts have also shared the same outlook. They believe Bitcoin will hit a cycle high of $200,000 by late 2025, fueled by regulatory clarity and growing institutional adoption.
“We remain convinced $100,000 is not the final milestone. We expect Bitcoin to hit a cycle-high of $200,000 in late 2025,” concludes Bernstein.<…> Paul Atkins, a former SEC Chair (2002-2008) is a known advocate for crypto & blockchain technology. He is also the co-chair of the Token Alliance, part of the Chamber for Digital Commerce, focused on digital asset regulation,” the analysts stated.
As prominent on-chain analyst Ali Martinez demonstrated, technical indicators also point to a possible cycle top in 2025. In the last two cycles, Bitcoin took 1,065 days to rise from a market bottom to its peak and 1,430 days to complete a full cycle.
If this trend continues, the next peak could occur by October 2025, suggesting the current bull run is just getting started.
In the long run, Bernstein predicts Bitcoin will eventually replace gold as the top ‘store of value,’ becoming a key part of institutional portfolios and corporate treasuries. Federal Reserve Chair Jerome Powell has also suggested that Bitcoin is a competitor to gold but not the U.S. dollar.
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