The cryptocurrency market was bullish in 2024. Bitcoin, the leading cryptocurrency by market cap, added over 140% to its value last year, outperforming other major assets, including Gold (26%) and S&P 500 (23%).
Last year’s rally saw Bitcoin break past the $100k mark for the first time in its history. This article will explore Bitcoin’s price performance so far this year and how far it can go.
Bitcoin Hit a New All-time High on Jan. 20
New year, same Bitcoin. The leading cryptocurrency by market cap continued where it left off in 2024. The Bitcoin price surged to a new all-time high on January 20th after hitting the $109,114 mark.
The market has been volatile since then, with BTC slipping below $98k on Monday, January 27th. However, it has since recovered and now trades above $102k per coin. If the bullish momentum resumes, Bitcoin could set a new all-time high in the coming weeks or months.
How High Can Bitcoin Go?
Bitcoin has already set a new all-time high in 2025, but many analysts believe it could go higher in the coming months. The predictions differ, ranging from $150,000 to $250,000.
However, some macroeconomic factors could determine how high Bitcoin’s price could go in 2025. Here are the factors.
inflation/ Interest rate
The inflation and interest rates in the United States usually play a huge role in the Bitcoin price outlook. A low inflation rate will see the Federal Reserve decrease interest rates to stimulate the economy and try to raise inflation levels to their target range. The lower the interest rates, the higher the price of assets like Bitcoin and Gold.
The Federal Reserve is expected to cut interest rates twice in 2025, which could be bullish for Bitcoin and other major assets.
Retail and Institutional Adoption
2024 saw significant liquidity from institutional investors into Bitcoin and the trend could continue this year. Michael Saylors’ MicroStrategy leads the way and has already spent billions of dollars this year in adding bitcoins to its holdings.
Thanks to the launch of Bitcoin ETFs last year, more players are also getting into Bitcoin. BlackRock’s ETF, now the fastest-growing in history, has simplified access for institutional investors. The growing participation indicates Bitcoin’s appeal to retail and institutional players.
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