Since 2009, Bitcoin has remained the leader of the digital market. Its continuous innovations, network improvements, and surprising achievements have made BTC gain the status of the “gold” of crypto. However, the popular coin is also known for its volatility and has experienced many ups and downs over the years. Still, despite the challenges, market experts and analysts forecast a positive outcome starting in 2024, ranking Bitcoin as a top investment choice for the upcoming bull run this year. Also, the best is yet to come, as the 2025 prediction suggests that BTC could reach a new high, exceeding the expectation with a $150,000 value. Whether you are already a full-time trader or a new entry in the Web3 market, in this article, you can find the main aspects that influence the positive outlook for Bitcoin:
Bitcoin in 2024
Bitcoin is the first cryptocurrency introduced to the public in 2024, so we can call it the starter of this revolutionary market. Starting with a price of less than $0.10, the digital currency brought high expectations, encouraging the appearance of new altcoins to fuel the potential of Web3. In the modern era, 2024 is the year of innovations in the crypto market. From Sec approval for Ethereum to Bitcoin halving, this year brought high expectations for the cryptocurrencies. One thing is for sure: Bitcoin is here to say. BTC ETFs, layer-2 solutions, and the overall network improvements make the leader a great competitor in the next bull run, which is predicted for summer 2024. The term bullish suggests the potential of a cryptocurrency to reach a considerable high, and the event itself is the explosion of the prices on the market, so the pre-run period is the perfect time to take action and invest in the coin with an easy guide on how to buy Bitcoin. For the last period, BTC fluctuated around $69,000, with a market cap of $1,359.02 B and a maximum supply of 21.00 M. These high numbers attest to the popularity and potential of the digital currency, so, understandably, they promise a great future.
Supply and demand
One of the main factors that influence Bitcoin’s price is the interconnection between supply and demand. The supply of bitcoin is limited at 21.00 M, which makes the coin rarerare and scarce. Also, with the BTC halving that occurred in April this year, the supply was cut in half, raising its price even more. This “limited edition” asset fosters interest in individuals and organizations that seek decentralization, fuelling its demand and, hence, a price riserise in price. The demand for Bitcoin is also directly influenced by the media and news coverage. This results in higher prices when the news sounds appealing to investors, and the bad reputation sends it down.
Why could Bitcoin reach its highest potential?
In the dynamic crypto market, nothing is certain. However, market analysts and experts take into consideration all the external factors that could influence the development of Bitcoin and forecast its development for years to come. The majority of experts believe that starting from the end of 2024, Bitcoin will see significant price increases, reaching 150K by the end of 2025. Some factors influenceThere are some factors that influence the market’s sentiment and analysis, such as the latest innovations in the network:
Bitcoin Spot ETFs
Bitcoin ETFs are Exchange-traded funds, which are financial instruments that expose investors to the price movements of BTC. Spot ETFs provide investors with a regulated way to invest in Bitcoin through their brokerage accounts in the underlying asset Bitcoin. SEC (Security and Exchange Commissions) approved the first spot ETF in January 2024, raising the interest in BTC even more. ETFs enhance the liquidity of the market, and they could lead to more stability for the prices and easier analysis of the trends, which facilitates investment and comes with new opportunities for traders. Market makers (firms or individuals) continuously buy and sell shares of ETFs, which is crucial for maintaining stability in the crypto world. Furthermore, since Bitcoin funds enable a straightforward overview of the possibilities of investment, they also create a transparent network that aims for financial inclusion for both institutions and individuals worldwide. As of today, the current bitcoin price remains strong, reflecting ongoing investor interest.
Layer-2 solutions
Layer-2 Networks are built on top of the main blockchain as a secondary protocol to enhance the scalability and efficiency of the BTC network. This new technology contributes to the ecosystem by enhancing the scalability of the market and improving the transaction speed, expanding BTC utility and making the digital currency capable of supporting new innovations like apps and systems, which go beyond being just a store of value. One of the most popular layer-2 solutions is stacks, which is a platform designed to support smart contracts and embrace decentralized finance (DeFi) for financial inclusion worldwide, NFTs (non-fungible tokens) for new investment opportunities and decentralized apps (dApps) for a private and decentralized digital world. Moreover, all these aspects attract businesses from all industries to address common problems and manage the efficiency of the supply chain by tracking the process, gaining access to a broader audience, proving ownership of the goods, and avoiding involving third parties like banks and other financial institutions, which can be more secure and cost-saving.
Bitcoin halving
Bitcoin halving takes place every four years, the latest one occurring recently, in April 2024. This event lowers the supply of the currency, increasing its scarcity and, hence, raising the price. One of the key purposes behind this practice is to address inflation concerns, lower the reward amount, and keep it more scarce. Halving brings high expectations, considering the past events, and this year, it also promises a great outcome for a new high for Bitcoin.
The bottom line
The ever-evolving digital market is taking over the world, bringing multiple opportunities to earn financial freedom and protect from common economic issues. Despite the volatility and overall dynamic of Bitcoin, the currency promises great returns in 2025, so if until now you’ve invested in small altcoins for little gains, go big and high and opt for the leader to change your path.
