Cryptocurrency has cemented itself as a digital asset to watch out for over the past few months, especially with Bitcoin recently breaking into the $100,000 mark.
Government leaders have also matured their approach towards regulating Bitcoin and other cryptocurrencies, expressing their stances and establishing clearer dynamics surrounding this relatively new digital finance space.
As the years pass, Bitcoin is projected to continue to advance as more people adopt it and hear about it in local media. That said, its journey to achieving long-term success is still hazy, and many people even claim that Bitcoin’s breakout moment may have likely passed its prime.
This begs a few questions. Is Bitcoin a viable investment option for serious investors looking to diversify their portfolios? Is 2025 a good year to hop into the crypto trend or continue dollar-cost averaging into this digital asset?
With the world still adjusting to new economic and political spheres—for better or for worse—Bitcoin’s position is something that many investors and financial experts are keeping a close eye on. And for good reason.
Let’s uncover what 2025 has in store for this digital financial asset.
Bullish and Less Liquid Market Trends
The months leading up to 2025 have seen a meteoric rise in Bitcoin’s price level, as well as the price of other cryptocurrencies. This is largely because of the anticipation of Donald Trump’s presidency, which has shown him having a crypto-positive stance.
Furthermore, Bitcoin is also found in many equity funds and institutions as a viable investment method. This increases the legitimacy of this crypto token, which increases its appeal to both crypto enthusiasts and novices interested in making their first investment.
This enthusiasm surrounding Bitcoin feeds onto itself and brings hype into the coin, leading to more investors putting a stake in the cryptocurrency. With more people investing in this low-supply token, Bitcoin becomes less volatile and increases in price accordingly.
That said, Bitcoin’s rise won’t be a continuous uphill slope. The strained economy and hiccups of the administration can contribute to the failings of the cryptocurrency.
Furthermore, the controversial executive orders of President Donald Trump, as well as his and other government officials’ involvement in pump-and-dump coins, have caused a dent in the growth and legitimacy of Bitcoin and other cryptocurrencies.
That said, crypto has had massive corrections from all-time-high peaks, so it’s not unlikely for these moments of despair to set in. But not all hope is lost: Bitcoin’s price is very likely to bounce back and reclaim new highs, as it has historically always done during its post-halving period.
For the most part, crypto’s role as a reliable hedge against inflation and its continuous involvement in a wide range of global financial activities will contribute to its growth and widespread adoption in 2025 and beyond.
Bitcoin Becomes More Regulated
The year 2025 will see a rise in more government regulations regarding cryptocurrencies on a global scale. Naturally, this will involve major crypto tokens like Bitcoin and Ethereum. The passing of this legislature can be for better or for worse for crypto’s widespread adoption.
In the United States, government bodies like the US Treasury are considering adding more Bitcoin into their reserve. Coupled with the current regularisation and taxation of crypto holdings, this signals to crypto investors that major government bodies are interested in holding onto this digital asset, which can increase public demand for Bitcoin and other cryptocurrencies.
However, in Europe, the European Central Bank (ECB) has a less favourable view of cryptocurrencies.
While EU citizens can trade and hold crypto like Bitcoin without government scrutiny, the president of the ECB Christine Lagarde has just recently rejected the idea of incorporating Bitcoin into European reserves due to its volatility and association with crimes like money laundering.
As 2025 rolls in, the relationship between Bitcoin and cryptocurrencies with the government will mature in its respective pathways. Not all countries accept Bitcoin; some even prohibit transactions involving it, like China and the United Arab Emirates. However, many countries and government officials within these countries are very accepting of Bitcoin and its mainstream adoption.
Bitcoin ETFs Become More Mainstream
While the crypto market is big and mature, it’s not something anyone can easily access.
It’s possible to buy Bitcoin with bitcoin.com.au and other crypto exchanges. In fact, you should heavily consider going this route if you want immediate rights to transact with most major crypto coins.
Having said that, no investor follows the same path—for investors who want a broker or who aren’t willing to fully commit to the crypto trend, Bitcoin ETFs present a solid investment alternative for these people.
Bitcoin ETFs, for the unaware, are exchange-traded products that allow investors to gain exposure to Bitcoin without directly holding or managing the asset. These ETFs are backed by actual Bitcoin and mirror BTC’s market performance while being securely held by a custodian on behalf of their customers.
This ETF type is likely to spring in popularity in 2025 as new investors who are distrustful of crypto exchanges enter the scene in a safe and regulated manner. Just like traditional ETFs, Bitcoin ETFs are secure, transparent, and tradable in traditional stock exchanges.
Furthermore, crypto ETFs are also on the rise, such as the newly-released Ethereum ETF. Over time, regulatory frameworks will evolve and investors will support crypto ETFs, which can further solidify BTC’s position in the global financial system.
Bitcoin Lending Rises
Crypto lending is similar to traditional lending in the sense that it involves receiving a lump-sum payment and paying it through regular interest payments. The major difference, of course, is the fact that payments are made through cryptocurrency.
Bitcoin lending is likely to increase in popularity as more lenders enter the scene, undercutting existing competition and granting more generous deals to their customer base. Normally, crypto lenders are required to deposit collateral and agree to a 20% APY to access a crypto loan.
This financing method will become more accessible in 2025, and these opportunities will allow crypto holders, particularly Bitcoin holders, to access immediate funding. Bitcoin lending in particular is enticing as this crypto is vastly more stable than other cryptos, sans stablecoins.
While the crypto lending scene has gone through some tough times with multiple bankruptcies, the recent change in control to the Republican party shows some promise in regulating this sector of the crypto industry—which can lead to a fresh cut of companies thriving and avoiding the same fate as their predecessors.
Bitcoin Mining Takes a Backseat
Bitcoin mining rewards continue to decrease every four years, with block rewards being at 3.125 BTC as of the end of 2024.
This essentially cuts half of a miner’s revenue stream, decreasing the profitability of the activity when taking things like electricity costs and mining hardware into account.
While new technology and hardware provide better efficiency, supplies for this equipment are hard to come by. Furthermore, miners are restricted to joining mining pools with multiple miners to profit nowadays, as solo mining is becoming tougher as more Bitcoin computational problems get solved.
Established miners with multiple computer rigs will be mildly annoyed by the result of the halving, but they may be able to stay profitable. New and smaller miners, on the other hand, may suffer greatly and fail to kick off due to these added challenges. And unfortunately, this will only become harder with each new halving cycle.
More Bitcoin Acceptance in Commercial Spaces
Bitcoin has established itself as a respected digital asset for quite some time now, but its recent crossing beyond the $100,000 digit mark, as well as the newly-elected Republican party’s favourable stance on crypto, essentially sealed the deal.
More businesses are starting to embrace Bitcoin as a payment method. This is the case across industries, from retail to real estate. This widespread adoption encourages people to transact with Bitcoin and other cryptocurrencies, which can drive mainstream integration of the token into daily life.
Furthermore, Bitcoin ATMs are also becoming more prevalent in stores and public areas in the developed world. This not only makes reaching for one’s Bitcoin easier, but it also creates a sense of legitimacy for the token as it’s displayed in everyday life.
Couple these perks with faster and cheaper transactions thanks to Bitcoin’s Lightning Network, and it won’t be difficult to imagine that Bitcoin’s fame will sustain for years to come.
