In 2024, Bitcoin was once again in the spotlight of the financial world, having more than doubled in value. This rapid growth is due to key factors that have changed the cryptocurrency market. This is reported by Reuters.
Optimism about easing regulatory restrictions helped bitcoin hit an all-time high of $108,315 in mid-December.
Despite the all-time high, bitcoin lost 3.2% of its value in late December as US investors began cashing in cryptocurrency gains. Bloomberg data shows a net outflow of about $1.8 billion from exchange-traded funds that trade bitcoin in the United States.
On January 1, 2025, Bitcoin fell 0.2% to trade at $93,518 in Singapore. Similar trends were observed among other cryptocurrencies such as Ether and Dogecoin.
Despite the volatility, Bitcoin has rallied 120% in 2024, well ahead of gold and global stocks. Also, the second largest digital asset, Ether, showed a 50% increase. This allowed the total market capitalization of the sector to increase to $3.5 trillion, according to CoinGecko.
Forecasts for 2025
Analysts at Bernstein brokerage predict that Bitcoin could reach $200,000 by the end of 2025. According to them, the cryptocurrency will become the key asset of the new financial era, gradually displacing gold as the main store of value.
"Bitcoin will become an integral part of institutional investment portfolios, as well as the standard of corporate treasury over the next decade," Bernstein analysts note.
Bitcoin continues to be a major player in the world of cryptocurrencies, uniting investors from around the world and shaping a new era of digital assets.
