Bitcoin (BTC) is ending the year below the expected $100,000 mark, despite briefly hovering above $95,000. It experienced a dip late Sunday night, reaching a low of $92,942 before recovering slightly to its current level of $93,690, reflecting a decline of nearly 1.50% over the past 24 hours.
This downward trend is affecting other cryptocurrencies like Ethereum (ETH), Solana (SOL), Dogecoin (DOGE), and Cardano (ADA), which have all experienced significant losses.
Looking ahead to 2025, analysts and traders are optimistic about the outlook for Bitcoin and the broader cryptocurrency market. The approval of spot Bitcoin ETFs and the upcoming Bitcoin halving event, which will reduce miner rewards and create a supply-demand imbalance, are expected to drive prices higher. The recent political landscape, including Donald Trump's victory and promises of a strategic Bitcoin reserve, is seen as a pivotal moment for the crypto industry.
Ethereum (ETH) has been struggling to maintain momentum below the $3,500 threshold and faced setbacks, including a drop below the 20-day simple moving average and a decline to an intraday low of $3,096. Solana (SOL) is also grappling with selling pressure, particularly around the $200 mark. Both Ethereum and Solana's struggles highlight the challenges altcoins face in a market still heavily influenced by Bitcoin's price movements.
The venture capital landscape for cryptocurrency is expected to strengthen in 2025, with projections indicating a potential influx of $18 billion or more in funding. This marks a 50% increase from 2024, driven by regulatory clarity and institutional interest. Institutions are already submitting applications for ETFs related to major altcoins, signaling a readiness to diversify beyond Bitcoin and Ethereum.
Despite the current price struggles, analysts remain bullish on Bitcoin's long-term prospects. Predictions for BTC's price in 2025 range from $180,000 to as high as $200,000, reflecting a growing belief in its potential. However, the Federal Reserve's monetary policy could pose challenges, as indications of scaled-back rate cuts in 2025 could dampen enthusiasm in the crypto markets. Regulatory developments and macroeconomic indicators will be closely monitored as they could influence Bitcoin's trajectory and the broader cryptocurrency ecosystem.