Bitcoin has achieved a historic milestone, surpassing $100,000 for the first time and extending its year-to-date gains to an impressive 138%. Analysts predict that this momentum, fuelled by optimism surrounding US President-elect Donald Trump’s pro-crypto policies, could drive further growth in cryptocurrency markets through 2025.
The recent rally has sparked renewed interest in altcoins, which are increasingly seen as offering greater potential for short-term gains than Bitcoin. After Bitcoin’s surge past $100,000 in early December, investor focus has shifted toward alternative cryptocurrencies.
November was a pivotal month for Bitcoin, with its price climbing more than 50% to a record $99,600 before continuing its upward trend in December, peaking at $103,607. A major driver of this rally has been the anticipated support for the crypto industry under Trump’s administration, which has hinted at initiatives such as a national Bitcoin reserve and incentives for US-based Bitcoin mining operations.
Woramet Chansen, an investment advisor at Merkle Capital, highlighted the strong growth prospects for Bitcoin and the broader crypto market, particularly the Ethereum ecosystem. He attributed this optimism to the impact of Trump’s election victory, Ethereum’s continued expansion, and a decline in Bitcoin’s market dominance.
“Trump’s victory has significantly boosted expectations for the crypto market,” said Woramet. He noted that Trump’s pro-crypto stance, including appointing a Securities and Exchange Commission chair supportive of digital assets, has already had a noticeable impact on Bitcoin’s valuation.
Ethereum has also benefited from this renewed optimism, with its price surging over 56% in November. Increased investment in the Ethereum spot exchange-traded fund, which hit an all-time high, reflects a growing appetite for riskier assets among institutional investors.
Woramet further pointed out the rising total value locked in the Ethereum network, which now stands at $70 billion, making it a key area to watch for potential growth in December and beyond.
Meanwhile, Bitcoin’s dominance within the overall crypto market has declined, signalling a shift of capital toward altcoins. Bitcoin dominance recently fell below a critical support level of 53%, paving the way for a potential altcoin rally throughout December.
Mana Khanijou, chief commercial officer at Merkle Capital, cautioned investors to remain vigilant. “I recommend carefully planning your investments and maintaining an acceptable level of risk,” he said. “All investments carry risks, so it’s crucial to conduct thorough analysis before making any decisions.”
As the digital asset market continues its remarkable trajectory, experts remain optimistic about its performance heading into 2025. Both Bitcoin and altcoins are poised for significant growth, buoyed by macroeconomic factors and heightened investor confidence in the evolving cryptocurrency landscape.
