In just a few weeks, the price of Bitcoin (BTC/USD) has continued to rise, surpassing $100,000 for the first time. The world's largest cryptocurrency has risen about 30 percent since Election Day and 121 percent since the beginning of the year. Considered the “digital gold” of the new generation, Bitcoin continues its rapid rise.
At the moment, there is great excitement around the cryptocurrency markets. Recent data show a generational shift in investment flows, with BlackRock's Bitcoin Trust (NASDAQ:IBIT) now surpassing the gold ETF in terms of holdings.
This trend could explain the precious metal's difficulties as the new form of digital gold gains popularity. It would be unwise to ignore this phenomenon considering that the world's largest cryptocurrency appears to be less volatile than in the past. Experts attribute this to the growing institutional adoption of cryptocurrency, which could help stabilize its value in the future.
In the past week, we have seen a significant increase in inflows into Bitcoin ETFs. In the past two days, these inflows have increased by nearly $2 billion. This trend is encouraging for fund managers and institutions, as it indicates increased mainstream adoption that could reduce market volatility. What can we expect in the coming months?
Studying the on-chain data of Bitcoin transactions, it was found that there were numerous profit-taking transactions totaling more than $3.1 billion in the March/April period. Over the past seven months, as the market has consolidated, the profit and loss situation has remained stable, indicating a balance between supply and demand that is a favorable condition for sustaining price rises.
With only a few months to go before he assumes office as president of the United States on January 20, 2025, Donald Trump is already putting his plans in motion. Trump's victory has given a boost to markets, particularly cryptocurrencies. Markets are now waiting to see if there will be increased regulations under Trump's presidency, while Elon Musk has suggested that the U.S. government use Bitcoin to address the country's enormously high debt.
In the coming months, developments and comments from new members of Trump's team could have a significant impact on the cryptocurrency market. These will be exciting times for all who follow its development.
What factors could influence Bitcoin's future in 2025? One of the most important is the lagged effect of halving, which historically has led to significant price increases in a short period of time. This is due to the deflationary nature of Bitcoin and its supply limit of 21 million units.
In addition, the growing adoption of Bitcoin as a store of value through new ETFs, along with clearer and more favorable regulation in major financial markets, could lead to greater acceptance both institutionally and by individuals.
The operation of the cryptocurrency market is based on the principles of supply and demand. As in any other financial market, the price of Bitcoin is determined by the meeting of buyers and sellers. However, unlike traditional markets, the cryptocurrency market is decentralized and not regulated by central authorities. When demand exceeds supply, the price increases.
Demand for cryptocurrencies is growing as more and more people use them as a method of payment. And it is not only Bitcoin that is involved, but other digital currencies are also gaining popularity. The greater the acceptance and use of these currencies, the greater their demand and value will be. Although there are already companies accepting cryptocurrencies, it will still take some time before their adoption becomes commonplace on a large scale.
However, when this happens, the price of cryptocurrencies will rise significantly, as the market is always ready to anticipate big events.
According to my predictions, the price of Bitcoin will continue to rise in the coming quarters and reach the $150,000 mark by the end of 2025.
However, it is important to choose the right investment instrument to get the best results. There are different options such as ETFs or direct investments on Bitcoin, but also companies involved in cryptocurrency production.