December 6, 2024, was the most memorable milestone for Bitcoin when the world’s largest cryptocurrency crossed the $100,000 level for the first time during its existence. A bull run that ensued post-US elections with a win for Donald Trump has already grown over 30 per cent since, and crossing the psychological barrier of $100,000 turned out to be a driving factor for Bitcoin’s future in 2025.
Interestingly, while Bitcoin sustained its surge following the US elections, conventional assets such as gold, oil and global equities had a difficult period during this time. For example, oil prices dropped over 6 per cent, while gold also dropped by 1 per cent in comparison with Bitcoin, as the risk asset charted a new frontier.
While Bitcoin has witnessed sharp price appreciation following all US presidential elections, the school of thought at this stage suggests that its bull run is yet to lose all its upward momentum — as some experts suggest Bitcoin could top $200,000 by the upcoming year. This notion is also backed by the NUPL indicator, which provides a positive outlook for investors — institutionalised and retail.
However, Bitcoin’s primary bull run will be supported by global governments, especially in the US where President-elect Donald Trump has vowed to make America the Bitcoin capital of the world. Trump has also promised to introduce pro-crypto laws and regulations, extending a positive future outlook to not only Bitcoin but the entire cryptocurrency ecosystem.
Around the world, even countries like Bhutan are having a major governmental participation in this new-age asset, whereas established world powers like Russia are also looking to develop a crypto reserve — an aspect that will further supplement Bitcoin’s upward push. In India, the crypto adoption rate remains one of the highest in the world and with a new RBI governor incoming and securities market regulator SEBI offering a favourable outlook to Bitcoin may lead towards a positive sentiment in India’s upcoming crypto bill, an element that could establish India as one of the critical enablers of Bitcoin’s growth in the future.
However, these aspects only present the tip of the iceberg when it comes to sustaining Bitcoin’s growth, as its long-term price appreciation depends on several intertwined factors as well.
Governmental Participation
As Bitcoin keeps outperforming conventional assets such as equity and gold, worldwide governments have identified the trend as well. This has led to a paradigm shift in governmental participation in Bitcoin, with the United States and the Kingdom of Bhutan coming up on top for their current or proposed initiatives.
In America, President-elect Donald Trump not only raised Bitcoin for campaign funding but has pledged to bring in new favourable regulations that support the growth of Bitcoin domestically. The Trump administration is also believed to be working to establish a crypto reserve, with particular emphasis on Bitcoin. With this increasing emphasis on Bitcoin by the US government, the market sentiments have largely become positive, and it expects Bitcoin to give multi-bagger returns by 2025.
Furthermore, other countries like China, Ukraine, Bhutan, El Salvadore, Venezuela, Malaysia, Japan, Australia and many more are actively buying, mining and creating strategic Bitcoin reserves. As governmental participation increases, this is both incentivising and democratising retail investors in those geographies — creating value and credibility for this new-age asset.
Positive Global Regulations
The differentiating factor that has helped Bitcoin to become popular has been its decentralised nature. Since it is not regulated by any central body, Bitcoin has been a popular go-to investment solution for millions of investors, particularly the youth.
However, global governments have been vocal about establishing some form of regulations surrounding Bitcoin, something that was also voiced at the G20 Summit in 2023 with India as the acting chair. In India, a crypto regulation bill is expected to be introduced in the coming time, something that has been replicated in the US House of Representatives as well as the European Union (EU).
Positive regulations could act as catalysts for widespread Bitcoin adoption, helping Bitcoin to cover more ground and untapped population. This aspect will be critical to sustain Bitcoin’s growth in the next year and beyond. However, an adversarial outlook may have a vastly different outcome, however, is not expected as of now.
Crypto Adoption Rate
While governmental participation and institutional investors are critical components of sustaining Bitcoin’s long-term growth, retail investors are another crucial cog in the wheel. As more individuals adopt Bitcoin as an investment tool — Bitcoin’s price action is expected to remain at a bullish stance in 2025 and beyond.
Retail investors’s role will be critical to help Bitcoin sustain six-figure valuations, particularly to create a robust foundation for future growth. For now, the population of select geographies, such as the USA, India, Germany, the United Kingdom, South Korea and others boasts of some of the highest crypto adoption rates in the world and with the participation of retail investors from new geographies will bolster Bitcoin’s future and lead to a multibagger return by the next year.
(The author is the Co- founder & CEO of GoSats)
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