FameEX Hot Topics | Bitcoin's Stability Signals Potential Growth in 2025

Bitcoin saw significant price swings in December 2024 after failing to sustain levels above $100,000. However, ARK Invest’s The Bitcoin Monthly report highlighted that these fluctuations were not extraordinary in a historical context. The report evaluated Bitcoin’s monthly and yearly realized volatility, finding that the year-end volatility spike was moderate compared to previous trends.

ARK noted that Bitcoin’s low relative volatility suggests the cryptocurrency has not yet entered the “mania phase” of its market cycle, indicating room for further growth. The report stated, “These data points suggest room for further market expansion during 2025,” reinforcing optimism for Bitcoin’s potential upside. Key indicators such as mining difficulty, strong holder behavior, and the short-term holder cost basis contributed to this positive outlook.

Holder behavior proved particularly bullish, as ARK’s analysis revealed that 62% of Bitcoin’s supply had not moved in over a year, even as the cryptocurrency gained more than 100% in 2024. This demonstrates strong confidence among long-term holders, strengthening Bitcoin’s prospects for sustained growth in the coming year.

Bitcoin’s rise beyond $100,000 in December was closely tied to the election of Donald Trump, who promised to make the United States a global hub for Bitcoin and cryptocurrencies. As part of his pro-crypto agenda, Trump appointed Paul Atkins to head the Securities and Exchange Commission and David Sacks as his chief adviser on crypto and AI. These moves have been well-received by the cryptocurrency community, signaling a favorable policy direction under the incoming administration.

Anticipation also builds around Trump’s expected issuance of crypto-specific executive orders on his first day in office on January 20. According to The Washington Post, these “day-one” orders aim to prioritize cryptocurrency initiatives, emphasizing their importance in the U.S. economy. Pantera Capital projects that these developments could further legitimize Bitcoin and propel its price to new all-time highs in the near future, marking a significant milestone for the cryptocurrency market.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.