Bitcoin & Crypto in 2025: Predictions You Can’t Afford to Miss!

The crypto market is buzzing with excitement after an extraordinary year, and everyone is eager to see what 2025 holds as a new administration takes the stage in Washington D.C. However, uncertainties linger.

Bitcoin (BTCUSD) kicked off the year with a bang, surging in response to fierce demand spurred by newly launched spot bitcoin exchange-traded funds (ETFs). A subsequent bitcoin halving further fueled the frenzy by slowing the rate at which new bitcoins enter circulation, creating a classic demand-supply crunch.

The recent election of Donald Trump, along with several pro-crypto lawmakers, has injected new energy into the bitcoin market, helping the digital currency breach the coveted $100,000 milestone for the first time.

Here’s what everyone in the market will be keeping a close eye on in the coming year.

What Trump’s Presidency Could Mean for Crypto Regulation

A major concern for the crypto market has been the murky waters of regulatory clarity and the U.S. Securities and Exchange Commission’s (SEC) enforcement tactics.

During his campaign, Trump made bold promises to the bitcoin and crypto industries, including a pledge to dismiss SEC Chair Gary Gensler on his first day in office and the introduction of a ‘Strategic National Bitcoin Stockpile. Gensler has since announced his resignation, with Trump proposing crypto advocate Paul Atkins to lead the agency.

Yet, even as markets await regulatory clarity, there’s no promise that clarity will come or when it might arrive.

“Trump’s stance on [decentralized finance (DeFi)] and crypto has been somewhat inconsistent,” noted Delphi Ventures General Counsel Sarah Brennan. “While he has shown interest in the space, much of his focus seems limited to preserving dollar dominance and real estate applications.” Bitcoin’s share of the overall crypto market, measured by the Bitcoin Dominance Index, has recently skyrocketed to new heights.

According to Nic Carter, a Partner at Castle Island Ventures, the legislative priority will likely be on passing stablecoin legislation first, before tackling the crypto market structure bill that will delineate which assets are commodities and which are securities.

Bitcoin Price Predictions and Key Influencers

Experts at Bitwise anticipate bitcoin hitting $200,000 by the conclusion of 2025, while VanEck predicts a more conservative $180,000.

These ambitious predictions for bitcoin prices have been floated before but often deemed unrealistic. With bitcoin now soaring above $100,000, they may not seem so far-fetched anymore.

With only 21 million bitcoins ever to be minted and 19.79 million already in circulation, the finite supply of bitcoin is fueling heightened demand.

Institutional players are increasingly eyeing bitcoin, with ETF promoters, corporations, and nations showing growing interest. Spot bitcoin ETFs have already attracted a whopping $36 billion in investments. MicroStrategy (MSTR), a frontrunner for public companies holding bitcoin on its balance sheet, owned 444,262 bitcoins worth approximately $42 billion as of December 23.

Historically, bitcoin—and the crypto market as a whole—has followed a cyclical pattern tied to the four-year bitcoin halving cycle. If this pattern holds, a correction in 2025 could be looming. Yet, the influx of institutional investors may help cushion any potential downturn.

Bitcoin is currently in what economist and Asgard Markets founder Alex Kruger describes as a “supercycle,” indicating we might see “recurrent corrections of 20%-40%” rather than the extreme “85% drawdowns” of the past.

The Federal Reserve could also have a say in bitcoin’s future. Recent statements indicate the central bank is scaling back its expectations for interest rate cuts in 2025, which could weigh on bitcoin prices. If the Fed maintains high Treasury yields, they may become more attractive to investors compared to riskier assets like bitcoin.

Will Bitcoin’s Surge Extend to Altcoins?

Financial institutions are already positioning themselves to capitalize on potential regulatory friendliness by filing applications for ETFs tied to other crypto assets like XRP (XRPUSD), expanding beyond the approved bitcoin and ether ETFs.

However, it remains uncertain whether altcoins, or cryptocurrencies other than bitcoin, will join the bullish celebration.

The Bitcoin Dominance Index, which reflects bitcoin’s share of the overall crypto market, has recently peaked during this crypto cycle.

“Historically, bitcoin dominance has followed a cyclical pattern,” remarked Seth Ginns, Managing Partner and Head of Liquid Investments at CoinFund. “We expect to see a shift to altcoins once bitcoin breaks significantly above its all-time high, mirroring trends from previous cycles.”