Cryptocurrency Rise: How Far Can Bitcoin Go in 2025?

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Bitcoin saw a 150% rise in 2024, positioning itself as one of the best performing currencies in the market during the year. We can attribute this to three bullish factors: regulatory optimism, an improving macro environment, and increasing investor enthusiasm.

Looking ahead, the world’s largest cryptocurrency is expected to expand its upward trend in 2025, with analysts predicting that it could reach a price range between $200,000 (193,000 euros) and $250,000 (241,000 euros).

Bitcoin’s bull cycle may continue

Bitcoin has historically reached new highs every 4 years during its last two bull cycles since 2017. Each cycle saw gains of 2,300% and 1,700% before reversals of between 70% and 80%.

Since bottoming out at $16,000 (€15,500) two years ago, Bitcoin has risen almost 600%, indicating great potential for further growth in the next two years.

Tom Lee of Fundstart Global Advisors expects Bitcoin to reach $250,000 in 2025. Standard Chartered expects the price to reach $200,000 next year.

Cryptocurrencies generally tend to move in an upward direction during central banks’ accommodative monetary cycles. Investors’ appetite for risky assets usually grows in environments characterized by increased liquidation and expansion of the money supply.

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

US regulatory winds

Regulatory developments have been the main driver of Bitcoin’s price rise in 2024. Its price has seen a significant rally, surpassing the critical resistance level of $52,000 (€50,200) in February.

This followed the US Securities and Exchange Commission (SEC) approval of a Bitcoin exchange-traded fund in January, ahead of the long-awaited Bitcoin halving event in April.

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

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

Bitcoin crossed the psychological threshold of $100,000 (96,600 euros) in early December after Trump announced plans to nominate Paul Atkins, the former SEC commissioner and crypto supporter, as the next chairman of the SEC.

Analysts are optimistic about Bitcoin’s prospects for 2025

“This performance is likely to continue in 2025, we will have a clearer regulatory environment and see institutional capital coming to the table in a more significant way than we have seen before,” said Josh Gilbert, markets analyst at eToro Australia. .

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

At a conference in July, the president-elect said owning Bitcoin would create “a durable national asset for the benefit of all Americans.” Senator Cynthia Lummis explained the purchase of no more than 200,000 Bitcoin tokens per year over five years, or roughly 1% of the total supply.

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

Downside risks in the near term

However, the long-term outlook may not change the risk of a near-term correction. Bitcoin’s price has fallen sharply from an all-time high of over $108,000 (€104,300) in mid-December to the current level of $94,000 (€90,800).

This is likely driven by profit-taking and risk-off sentiments. This decline coincides with the decline 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 gains in 2024.

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