Bitcoin Starts 2025 Lower After Rising Over 120% in 2024

Bitcoin (BTC) began 2025 on a downward trend, still above $94,000, after closing 2024 with a 121% accumulated gain, making it one of the top-performing assets of the year.

For this year, cryptocurrency enthusiasts are expecting another Bitcoin rally, fueled by the pro-crypto regulatory outlook under President Donald Trump’s government in the U.S. Historical performance also supports these expectations, as Bitcoin has typically seen significant price increases in the years following “halvings,” when miners receive half the reward for authenticating new blocks on the blockchain. The last halving occurred in April of the previous year.

BTC/USD

On the other hand, critics of digital currencies and new investors in the sector warn that much of the optimistic outlook may already have been priced in over the past few months, particularly after Trump’s election. As a result, BTC/USD and other cryptocurrencies may have little room for substantial gains in the coming months without new catalysts to justify significant capital inflows into the market.

Bitcoin Outlook

Analysts suggest this may partly explain Bitcoin’s weak performance in December, when the cryptocurrency fell 3.2%, in line with the disappointment in risk markets due to the U.S. Federal Reserve’s (Fed) interest rate cuts forecasted for 2025.

As of today, Bitcoin was trading at $94,189, down 1.1% in the last 24 hours, according to CoinGecko. Ether (ETH), the native currency of the Ethereum network, was priced at $3,345.85, down 1.9%.

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ABOUT THE AUTHOR See More
Ignacio Teson
Ignacio Teson
Economist and Financial Analyst
Ignacio Teson is an Economist and Financial Analyst. He has more than 7 years of experience in emerging markets. He worked as an analyst and market operator at brokerage firms in Argentina and Spain.
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