Looking back, Bitcoin’s previous halving cycle from May 11, 2020, to April 19, 2024, delivered a remarkable 640% growth. During this cycle, the coin’s price soared from $63,700 to its current all-time high. As the new cycle unfolds, Bitcoin has climbed by 51%, with some projecting targets of $120K to $150K in 2025. The most optimistic forecasts suggest a potential peak of $200K, though the community agrees that $120K is a safer bet.
Source: Brave New Coin’s Bitcoin Liquid Index
The Numbers That Back the Hype
The Puell Multiple chart as a critical indicator supporting Bitcoin’s upward trajectory. This metric, which assesses miner sell pressure, currently stands at 1.241. It hit a yearly high of 2.77 on April 20 and a low of 0.48 on September 11. November saw fluctuations between 1.3 and 0.93, highlighting a market poised for steady growth. These figures reassure investors that Bitcoin’s bullish potential remains intact for the foreseeable future.
Source: CryptoQuant
The recent political shift in the United States further strengthens cryptocurrency’s future prospects. Pro-crypto candidate Donald Trump’s victory in the latest presidential election has ushered in optimism. His decision to nominate Paul Atkins, a well-known crypto advocate, as the new SEC Chairman is expected to ease regulatory tensions that plagued the industry under Gary Gensler’s tenure.
Trump’s win aligns with a growing global sentiment favouring cryptocurrencies. Russian President Vladimir Putin recently emphasized that banning Bitcoin is not an option, stating his nation’s commitment to embracing digital currencies. Such statements reflect the mounting international consensus on the importance of these technologies.
Bitcoin, Gold, and the US Dollar
Adding to this sentiment, Federal Reserve Chair Jerome Powell addressed concerns about Bitcoin’s growing appeal potentially undermining the US dollar. He remarked that Bitcoin does not threaten the dollar’s dominance but competes directly with gold. This perspective highlights Bitcoin’s evolving role as a store of value, akin to precious metals.
Turning the spotlight to Alt Season, experts underscore Miles Deutscher’s analysis, which points to the 88-day duration of the last altcoin rally. Predictions suggest 2025 will be a breakout year for altcoins, with significant gains anticipated across the board. This optimism stems from improved market conditions and reduced regulatory pressures, setting the stage for explosive growth.
The upcoming year presents an opportunity for investors to capitalize on a well-rounded crypto market. While Bitcoin remains the flagship, the altcoin sector is poised for its moment in the sun. Strategic investments in diverse assets could yield impressive returns.
What’s Ahead for the markets?
Bitcoin’s recent breakout from the downward channel and subsequent bull run signal bullish momentum for crypto investors. The move past $70,000 into new highs of $100k suggests strong market sentiment.
Source: Trading View
For crypto investors, sustaining Bitcoin’s upward trajectory near $99,000 is critical. High volatility remains likely, necessitating risk management strategies. A pullback could present buying opportunities, but a decisive move beyond psychological resistance at $100,000 would likely attract more institutional interest, potentially fueling broader market gains.
As 2025 approaches, the cryptocurrency landscape is more promising than ever. A mix of favorable policies, surging market dynamics, and growing global acceptance fuels optimism. With Bitcoin leading the charge and altcoins close behind, the stage is set for a year of unprecedented opportunities in the crypto space.
