Thailand’s leading cryptocurrency exchange, Bitkub, is optimistic about a potential Bitcoin “super cycle” in 2025, buoyed by the return of Donald Trump to the White House and his administration’s pro-Bitcoin stance.
In 2024, Bitcoin prices soared by 145%, reaching an unprecedented $108,350 in December. Despite a slight pullback as investors locked in profits and concerns arose over the Federal Reserve’s pace of interest rate cuts, analysts at Bitkub remain bullish about the cryptocurrency market’s outlook for 2025.
“2025 is shaping up to be a pivotal period for Bitcoin and the broader cryptocurrency market. Trump’s presidency and proposed policies could provide substantial support for long-term growth,” Bitkub’s research team said.
Trump Administration Fuels Optimism
Key to this optimism is the Trump administration’s pro-crypto agenda. Plans include the introduction of the Bitcoin Act, which proposes accumulating Bitcoin as a reserve asset, purchasing 200,000 BTC annually over five years, and adopting a proof-of-reserve system to enhance transparency.
However, Federal Reserve Chairman Jerome Powell has cautioned that these measures require congressional approval and may not align with existing regulatory frameworks. The Fed’s monetary policy is also expected to play a critical role, with interest rates projected to decline gradually to 3.9% by the end of 2025, slower than initially anticipated.
Institutional Investors Drive Market Sentiment
Institutional interest in Bitcoin remains robust, with spot Bitcoin exchange-traded funds (ETFs) continuing to attract significant inflows. By the close of 2024, ETF issuers collectively held 1.13 million BTC, valued at approximately $109 billion, marking a 73.6% increase for the year.
“However, the success of the market will largely depend on the Fed’s monetary policy and institutional investors,” Bitkub analysts noted. “A faster monetary policy easing could provide a significant tailwind, while a more cautious approach might limit growth.”
While institutional inflows have supported market stability, profit-taking following the recent surge has introduced some volatility. Analysts warn that high-risk assets, including cryptocurrencies, could face additional pressure unless the Federal Reserve adopts a more aggressive monetary easing strategy.
Market Outlook
Bitcoin’s performance remains a critical indicator of market sentiment. As of January 14, Bitcoin was trading near $95,000, maintaining a remarkable 121% return over the past year.
While optimism surrounding the cryptocurrency market is high, global uncertainties and market volatility continue to pose risks. For investors, Bitkub advises cautious navigation of the market to capitalize on opportunities in what could be a transformative year for cryptocurrencies.