Growth of 120% Last year

Growth of 120% Last year, Bitcoin beat the majority of asset classes. Will this trend continue in 2025?

Following a record surge, Bitcoin saw its first monthly decline since August 2024, dropping 3.2% in December. In spite of this, it increased by 120% in 2024. We examine the expectations of industry participants and experts regarding Bitcoin, other tokens, and the larger crypto markets.

The largest cryptocurrency in the world, Bitcoin, outperformed most asset classes in 2024 with a gain of 120%. However, a Bloomberg story claims that the token experienced its first monthly decline since August 2024 as its record-breaking run faltered at the end of 2024 and into the New Year 2025.

Following a prolonged surge ahead to Donald Trump’s inauguration as the 47th president of the United States on January 20, 2025, Bitcoin fell 3.2% in December as investors started to cash in their gains.

Bitcoin Beat Equities and Gold

Before US Federal Reserve actions cooled the high, Bitcoin reached an all-time high of $108,315 in mid-December due to the Trump-backed cryptocurrency craze. According to the analysis, the cryptocurrency has nevertheless outperformed gold and international stocks, recording a 120 percent rise through 2024. The research also said that Bitcoin had made a “comeback” in 2023, more than doubling in value. Curiously, one of the few assets that outperformed even the cryptocurrency resurgence was cocoa.

Additionally, other cryptocurrency tokens saw an increase in value, even as investors and market observers mostly dipped into the Bitcoin pie. Dogecoin, a popular meme, increased by 253%; for instance, an investment of $10,000 in the token would have yielded $35,345 in return.

Experts' Expectations and Hopes for 2025

In a statement to investors, QCP Capital stated: “We believe the major catalyst may occur in January as institutions reassess asset allocations, despite the excitement around crypto-friendly laws following the Trump administration. Allocations are expected to rise as a result of Bitcoin’s widespread adoption by a wide range of institutions, including university endowment funds this year. This will solidify Bitcoin’s dominance, stabilize spot fluctuations, and move volatility dynamics closer to those of stocks.

The expansion of Bitcoin is “impressive,” according to Vishal Sacheendran, Head of Regional Markets at Binance, who told Livemint that 2024 has been “transformative for the industry as a whole.” Sacheendran stated that the emphasis for 2025 will be on “improving blockchain utility to address real-world challenges, fostering stronger collaborations with authorities, and increasing knowledge and trust within the crypto community.” More than just trading, the future of cryptocurrency lies in creating a decentralized, inventive, and inclusive digital economy. “We are hopeful that in 2025, India will take the lead in forming progressive and comprehensive crypto regulations,” he added, expressing excitement about the country’s role in the industry.

According to CoinDCX co-founder Sumit Gupta, who spoke to Livemint, the cryptocurrency industry is about to reach a pivotal phase that is “driven by enhanced regulatory clarity, increased institutional involvement, and advancements in technology.” “As 2025 draws near, the market’s maturity is becoming clear,” he continued. Bitcoin and other altcoins made up 51.5% of investor portfolios in 2024, according to CoinDCX data, suggesting a shift away from speculative trading and toward more smart investing strategies. Given that investors are becoming more concerned with long-term value, it is anticipated that Bitcoin’s proportion in these portfolios will increase by an extra 10% to 15%. Gupta expressed optimism that the amount of institutional investment might exceed $500 billion, led by the IPOs of Web3 firms and cryptocurrency. He also mentioned how technology and geopolitical considerations affect the sector. He believed that 2025 would be a crucial year for the industry’s assimilation into mainstream finance, notwithstanding persistent obstacles.

FAQ

Why did Bitcoin experience a 120% growth in 2024?

Bitcoin’s remarkable growth in 2024 was driven by several factors, including increased institutional adoption, the crypto-friendly policies anticipated with Donald Trump’s presidency, and its position as a hedge against traditional assets during global economic uncertainty. These factors propelled Bitcoin to an all-time high of $108,315 in mid-December 2024.

What caused Bitcoin's decline in December 2024?

Bitcoin experienced its first monthly decline since August 2024, dropping 3.2% in December, as investors began cashing in on profits following its record-breaking rally. This coincided with the US Federal Reserve’s actions, which dampened the overall market enthusiasm.

How did Bitcoin perform compared to other asset classes in 2024?

Bitcoin outperformed most asset classes, including equities and gold, with a 120% increase in 2024. However, other cryptocurrencies, such as Dogecoin, also saw substantial growth, with a 253% increase during the same period.

What are the expert expectations for Bitcoin and the crypto market in 2025?

Experts anticipate that 2025 will be transformative for the cryptocurrency sector, with a focus on enhancing blockchain utility, fostering regulatory clarity, and increasing institutional investments. Bitcoin’s dominance is expected to stabilize further, and institutional investments may exceed $500 billion, driven by Web3 IPOs and broader adoption.

What role will India play in the cryptocurrency industry in 2025?

Experts, including Binance’s Vishal Sacheendran, believe that India will take the lead in forming progressive and comprehensive crypto regulations in 2025. The emphasis will be on creating a decentralized and inclusive digital economy, addressing real-world challenges, and fostering trust within the crypto community.