6 Ways to Make Sure Bitcoin Price Will Break the Sky in 2025

For context, Bitcoin returned an average crypto exchange price return of 210% since November 1, 2023, to an all-time high above $108,000 on December 16, according to data compiled by CoinMarketCap.

Compare this to the performance of US stocks over the same time period and the original, safer cryptocurrency massively over-indexed for investor benefit:

During the same period, the S&P 500 index, the broad benchmark of US stocks, gained 45%. Meanwhile, the tech-focused Nasdaq Composite rose 55%, according to data from Yahoo Finance.

What makes Bitcoin’s feat in 2023 particularly remarkable is that it was an all-time record year for the stock.

However, key analysts in the crypto X community and traditional financial firms expect a repeat of the cryptocurrency sector in 2025.

Below are six key factors pouring rocket fuel into the Bitcoin economy.

1. Crash CX balance to Bitcoin price ratio

Based on the simple economics of supply and demand, one of the most bullish omens for Bitcoin in 2025 is the disappearance of BTC supply on crypto exchanges. This decreases the available supply of Bitcoin for sale.

The remaining supply is becoming radically more precious and therefore priced higher. Also, the flight of BTC from exchanges indicates the intention of owners to hold their deposits for the long term. This implies sustained support for the price of Bitcoin at its current levels.

Bitcoin balance on crypto exchanges crashed over the New Year holiday to a low not seen since February 2018, according to data from Coinglass. Meanwhile, the price of BTC is soaring near all-time highs.

2. Corporations and governments join the roaring 20s

The US government’s early entry into the BTC race is another sure sign of massive and lasting price support for Bitcoin.

In addition to the entry of the Trump Administration, which plans to establish a strategic Bitcoin reserve, a number of publicly traded corporations are jumping into the fray.

The Donald Trump Administration plans to keep its current stockpile of 198,000 BTC, mostly seized from criminal operations, instead of continuing to sell it at auction.

Senator Cynthia Lummis (R-WY) proposes to go further and accumulate one million BTC. Disruptive changes in global finance in the Internet age are being taken very seriously.

The CEO of Japanese venture capital firm MetaPlanet said on New Year’s Eve that he hopes other governments in the Asia Pacific region will follow the US and establish national reserves.

Meanwhile, several publicly traded companies, including MetaPlanet, VA-based MicroStrategy and CA-based Semler Scientific, are hoarding Bitcoin to shore up their finances and benefit from their historic market gains.

In addition, there is voracious demand on Wall Street for Bitcoin ETFs.

3. Bitcoin MVRV Z-Score – Screaming Bull Signal

MVRV stands for market value to realized value. Z-score is a term in statistics that means the average of the differences between a set of values ​​and its mean value.

This is the ratio of Bitcoin market cap to the total of all BTC calculated at its average market price the last time it moved wallets.

A recent article that appeared in Forbes explains why this is important: “By accounting for short-term price fluctuations, realized value provides a clearer view of Bitcoin’s long-term ‘fair’ valuation.”

In past cycles, Bitcoin’s MVRV ratio marked the top of the market in two weeks, when the ratio reached 7. On January 1st, Bitcoin’s MVRV was below 3, indicating a lot of up

In fact, it is very suggestive that the price of Bitcoin could still double from here to the end of the cycle.

4. Bitcoin Hash Rate Breaks New All-Time Highs

BTC hashrate hit new highs through December in a strong historical uptrend line for 2025.

Bitcoin’s hash rate is a measure of the number of computing cycles that BTC mining machines are running to secure the network and maintain an accurate and up-to-date copy of the blockchain.

When it rises, that’s a bullish sign for Bitcoin’s price because miners have to use electricity and tie up computing cycles that could be used for something else to run the cryptocurrency’s core software. They are doing this to get the blockchain reward to help maintain Bitcoin, which is paid in new BTC.

Therefore, an increase in the hash rate indicates optimism about future BTC price increases from some of the most well-informed stakeholders in the entire enterprise.

5. Macro rate cuts and the US federal deficit

Here’s your real Trump coup for crypto assets.

In addition to an administration that will be friendly to the blockchain industry, Trump’s plans for the federal government during his next term will melt the federal budget deficit.

Fiscal year 2024 was the third largest deficit in history at $1.833 trillion. However, the Committee for a Responsible Federal Budget estimates that Trump’s plans will quadruple that every year he’s in office.

This macro tide will undoubtedly increase inflation throughout the economy and more dramatically in financial markets such as the NYSE, NASDAQ and Bitcoin exchange markets.

6. Urgent Bitcoin Chart Technical Indicator

According to data compiled by CoinGecko, Bitcoin price appeared to be already breaking out of a classic 15-day bullish falling wedge pattern with decreasing volume on December 31st.

Traders may need to act quickly to make this trip. The year started with a rally from under $93,000 to over $97,000. After a minor pullback, the asset could be poised for further gains even ahead of Trump’s January 20 inauguration.

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