Bitcoin (BTC) has had a volatile start to 2025, breaking through $100,000 but then falling back down. Given that it was trading below $8,000 five years ago, this is an incredible achievement. The big question is, though – what happens now and can Bitcoin break through $100,000 again?
Why the Bitcoin price is soaring?
Before we look at what the future holds for Bitcoin, it’s worth looking at the factors that have pushed its price up recently. There are several different factors, which combined, have had an enormous impact on its price.
Bitcoin’s 2% increase this year can be attributed to several factors:
- Institutional Adoption: Major financial institutions and corporations have continued to invest in Bitcoin, enhancing its legitimacy and driving demand.
- Regulatory Environment: The incoming Trump administration’s pro-crypto stance, including plans to establish a Bitcoin strategic reserve and appoint crypto-friendly officials, has boosted investor confidence.
- Market Dynamics: Positive market sentiment and increased trading volumes have contributed to Bitcoin’s price appreciation.
- Macroeconomic Factors: Expectations of favorable economic policies under the new administration have further supported Bitcoin’s value.
These elements have collectively contributed to Bitcoin’s modest rise in 2025.
What’s next for Bitcoin?
Bitcoin has always been a notoriously volatile asset. It has also always been very unpredictable. So realistically, no one knows for sure what’s going to happen next. But I wouldn’t be surprised if it kept rising from here.
For a start, a lot more capital could potentially come into the asset class. Realistically, institutions are just getting started in the crypto space. Meanwhile, many retail investors still don’t have exposure to Bitcoin. So, we could continue to see strong inflows. Given that only 21 million Bitcoins can be mined, continued inflows could push prices up further.
Secondly, the regulatory backdrop is likely to continue to improve. Looking ahead, US Securities and Exchange Commission (SEC) Chair Gary Gensler – a crypto skeptic – has said that he’s going to step down from his position early next year. A leadership change in the SEC could lead to more relaxed regulatory frameworks for the asset class. This could result in more investment.
Finally, from a technical perspective, BTC is in a strong uptrend right now. This suggests that market sentiment is bullish, and that there’s high demand for the crypto-asset. It’s worth noting that trends can stay in place for a long time. Often, it pays to trade in the same direction as the prevailing trend.
Now, it’s important to point out that investing in Bitcoin is highly speculative and carries significant risk. Many people still believe that the crypto-asset has no real use case. And history suggests that its price is likely to experience a significant pullback at some stage in the future. So, while there are reasons to be bullish, investors should tread carefully. With this asset class, one shouldn’t invest any capital that they’re not prepared to lose.
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Based in London, Edward is a distinguished investment writer with an extensive client portfolio comprising a diverse array of prominent financial services firms across the globe. With over 15 years of hands-on experience in private wealth management and institutional asset management, both in the UK and Australia, he possesses a profound understanding of the finance industry.
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