Bitcoiners are a group of people that are always looking toward the future. Thinking about bullish scenarios that will cause Bitcoin to gain adoption, and also possible bearish scenarios that could pose a threat to Bitcoin.
Therefore, it makes sense that as the year 2024 is quickly coming to an end, everyone in the industry has already begun to wonder how Bitcoin will perform in 2025. Thinking about what could cause the price of Bitcoin to soar next year and just how high its price could go.
These are the reasons why 2025 will be a very bullish year for Bitcoin.
The BTC Halving is Being Underestimated
The Bitcoin halving occurred in April 2024, cutting the issuance of newly minted Bitcoin rewarded to miners in half. Going from 6.25 BTC every block, down to 3.125.
As always, there was an incredible amount of hype leading up to the halving taking place. This time was even more significant due to the fact that BTC had just made new all-time highs before the halving even occurred. A first in Bitcoin's history.
During previous crypto cycles, the BTC halving was the main catalyst to ignite the bull market. Causing a supply shock that eventually resulted in Bitcoin's price going parabolic. There is no reason to think this won't happen again.
Yet, it seems like the same story plays out every cycle. Everyone is hyped about the halving occurring but ends up being disappointed that the bullish results aren't instant. Instead, it takes about months on average until the supply shock begins to affect the market. That is the moment when the price of Bitcoin becomes bullish.
We are just entering this period now, which means that Bitcoin's price could begin moving at any moment. The halving should never be unestimated, especially when we have never seen such high demand for BTC.
Bitcoin's Image Has Recovered
It's incredible how much of a difference a year makes. At this point last year, we were still fresh off of the FTX fraud, and there were real doubts about whether Bitcoin would ever be able to recover from this.
Financial experts were declaring that the scandal had set back Bitcoin by at least 5 years if not more.
BlackRock's application for a BTC Spot ETF truly changed everything. They are arguably one of the most powerful financial companies in the world, and when they speak; everyone listens.
Due to this, Bitcoin's image has never been better. It shouldn't be underestimated that this will be the first bull cycle where Wall Street and hedge fund investors can fully participate due to the recent approval of the ETFs.
The end result is that an unprecedented amount of capital will be put into Bitcoin and not even the most bullish of us can predict how this will affect Bitcoin's price.
The Lull in the Market
"Sell in May and go away."
It's uncanny how often this famous investing phrase ends up becoming accurate. While Bitcoin's price is currently above $62k, the truth is that Bitcoin has been moving sideways for several months now.
For most people, the most dangerous aspect of the Bitcoin market isn't when there is extreme volatility upward or downwards. The time when they are in the most danger is when boredom sets in.
This is the moment when they begin to lose patience, and conviction in Bitcoin itself, or just mentally withdraw from the market. Becoming anxious in the market is when people make unforced errors and end up selling out of their positions too early.
The market is always the calmest right before the storm hits.
Bitcoin is about to remind everyone just how volatile it can be, and that is the moment we will all wish that we had bought more Bitcoin.
The World & Market are Recovering
The last Bitcoin cycle we saw it soar all the way up to $69k, yet for many people this was a disappointment. The truth is that Bitcoin had its wings cut before it really had a chance to soar last cycle.
Some of the biggest reasons for this were the pandemic that was spreading rampantly around the world, countries entering deep recessions, wars breaking out, the countless scandals and frauds that ravaged the crypto industry, countries banning Bitcoin, and the list goes on.
There are still several notable problems that the world is currently dealing with. However, most countries are on the verge of recovery and exiting recession status.
With less FUD and more capital available to Bitcoin, it should prove to be a very bullish period for Bitcoin.
Nation-State Adoption
El Salvador was the first country to officially make Bitcoin legal tender in their country, but they definitely won't be the last.
It appears that Bitcoin is on the ballot in the US election. Donald Trump has declared that if elected President, he would start a national Bitcoin reserve in the US.
The US remains the world leader, especially when it comes to finance. This means that the entire world is paying attention to this election and, inevitably what they will do with Bitcoin.
If the US starts its own Bitcoin reserve or even starts actively purchasing BTC; no one would be ready for the game theory event that would take place. We have seen retail investors FOMO into Bitcoin during bull cycles, but countries FOMOing into Bitcoin would be something on a whole different scale. That is the moment when the fabled "Bitcoin Super Cycle" could become very real.
These are just a few of the key things that Bitcoiners need to be paying attention to as we approach 2025. However, the most important thing to remember about Bitcoin is that it thrives on being unpredictable. Just when you thought you had it figured out. That is when it will do the complete opposite. Taking that into consideration, Bitcoin could exceed all expectations in 2025.
How about you? What is your Bitcoin prediction for 2025?
As always, thank you for reading!
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