Important note
Disclaimer: This article is an educational guide to CFD trading and financial markets and should not be considered investment advice. Trading CFDs involves a high level of risk. Always make sure you understand all the potential risks and rewards associated with trading before making a trade.
Cryptocurrency trends in 2025
The year 2024 has been one of the most exciting years so far in the cryptocurrency market. The original and most popular cryptocurrency Bitcoin saw its price skyrocket from $42,265 on January 1 to $93,429 on December 31. This is similar to what happened in 2023, when the price increased by more than 100%, taking the cryptocurrency to unprecedented heights.
Critical events that influenced Bitcoin's price trajectory in 2024 included the US Securities and Exchange Commission's approval to launch Bitcoin ETFs, the election of Donald Trump as US president in November, and the appointment of pro-cryptocurrency SEC Chairman Paul Atkins in December. The last of these events saw prices briefly close above $100,000 in early December, an unprecedented record reached by the cryptocurrency. Bitcoin was able to relatively improve its position in the market in 2024, when other coins experienced less dramatic rises, with Litecoin ending 2024 up 50% and Ethereum up 44%, in line with the general growth of the crypto market.
"Bitcoin's price spike in 2024 leaves crypto traders with an obvious question: Is it likely to happen again?"
What's happened so far : 2025
The year 2025 seems to promise new turbulence in the cryptocurrency markets. Many in the industry have pinned their hopes on incoming US President Donald Trump to take a soft stance on regulation, and the selection of Paul Atkins as chairman of the US Securities and Exchange Commission provided a strong bullish signal for cryptocurrency. Prices in January 2025 are at or near all-time highs, and major financial institutions continue to trade cryptocurrencies, including Bitcoin and Ethereum, both directly and through ETFs or derivatives.
Learn more: What is Bitcoin? Introduction to Bitcoin
Trump's cryptocurrency: Is it a game-changer?
Although markets have rebounded, the first few weeks of 2025 have been chaotic. In January, Trump announced the launch of $TRUMP, which immediately soared in value on a wave of speculative trading. It is a "meme coin," a digital currency launched with extensive online marketing, often based on a popular online joke or prank that has gone viral. Although some meme coins, notably Dogecoin, have retained their value over time, this is generally a questionable practice and meme coins are often viewed negatively by serious cryptocurrency traders.
What happens next?
Since the wallet that allegedly belongs to the president contains 80% of the total $TRUMP coins, the value of this coin is likely to collapse when he starts selling. This could have serious repercussions for the broader cryptocurrency market, and the entire $TRUMP story is one of the most high-profile crypto market tests in recent years. It's no secret that the timing and nature of the announcement of Trump's meme coin is odd, and may scare some traders. A loss of confidence in the overall market would have devastating effects on more popular currencies such as Bitcoin, Bitcoin Cash, and Litecoin. Oddly enough, Melania Trump, the incoming first lady of America, also launched a rival coin on January 19, causing a sharp 50% drop in the price of $TRUMP in the hours following her announcement. Publicity can bring new investors to cryptocurrencies, but this kind of activity can only strengthen the resolve of regulators to impose strict restrictions on the trading practices of marginalized cryptocurrencies such as meme currencies.
What is the outlook for Bitcoin in 2025?
So far, the price of Bitcoin has not been negatively affected by the massive activity surrounding Trump's meme. Analysts have long viewed Bitcoin's future price trajectory as dependent on three things: Regulation and recognition by governments, use in payments, and investor sentiment towards Bitcoin itself and cryptocurrencies in general. High price expectations that were once considered hyperbole, such as $100,000, have already been breached, but claims by Bitcoin proponents of a long-term price of $500,000 or even $1 million now seem less far-fetched. Finally, Bitcoin ETFs, already popular outside the U.S., got the regulatory green light from the SEC in 2024 and look set to bring new traders into these volatile markets.
Weaknesses
Despite the great enthusiasm, Bitcoin and other digital assets are at risk. In the future, regulators may take a tougher stance against the still-unknown and mysterious world of cryptocurrencies. Even if cryptocurrencies perform well overall, it is possible that traders could lose interest in Bitcoin as more and more competing currencies enter circulation.
In 2024, major competitors Litecoin and Bitcoin Cash underperformed Bitcoin, which dominated in a market characterized by news-driven and sentiment-driven price action. Media coverage has also played an important role in shaping the classic price bubble that Bitcoin's critics have repeatedly warned about, and have clearly not succeeded in their predictions so far. Despite the progress cryptocurrencies have made in terms of mainstream acceptance, old issues such as the weakness of cryptocurrency exchanges remain a negative to keep in mind. ADSS traders can avoid potential issues with exchanges and hold underlying cryptocurrency assets by trading crypto CFDs.
How likely are the 2024 trends in Bitcoin to continue?
Bitcoin has benefited from a series of positive announcements in 2024, as many traders and investors expressed hope for faster recognition of cryptocurrencies. Overall, the market capitalization of all digital assets has increased by 50%, with Bitcoin improving its position among competing currencies. The year 2025 may see further focus on trading digital currencies, particularly Bitcoin, and the relative performance of Bitcoin's price against competing currencies is a key metric that traders should monitor. Bull markets have overlooked technical aspects, such as the Bitcoin halving event in March 2024, and there are no plans for further halvings.
**Summary**
Bitcoin is a highly volatile asset, which is why it is favored by traders. The major discussions surrounding Bitcoin in 2025 are similar to those that took place last year, focusing on government acceptance and recognition, regulation, and the stability of the Bitcoin market. The trends in cryptocurrencies in 2024 have mirrored those of 2023, with Bitcoin's price doubling despite concerns about volatility and increased regulatory scrutiny. However, this does not guarantee that the same will happen in 2025.
Indeed, the activity surrounding meme coins has created negative media coverage for the cryptocurrency market. If this continues, regulators and policymakers may become wary of cryptocurrency stars in 2024, and stricter reporting, tax regulations, and capital gains rules could pose serious downward risks.
In recent years, cryptocurrencies have defied all expectations of decline, but the underlying problems and gaps in the market have not disappeared. This presents both upward potential and significant downward risks. The year 2025 is likely to be another pivotal year for the currency, but as always, traders must exercise caution.