The cryptocurrency's price reached an all-time high and is expected to grow even further in the first quarter of 2025, thanks to the aftermath of the fourth halving .
2024 is coming to an end and the numbers reflect that it has been a relevant year for the evolution of Bitcoin (BTC) as a financial asset. The cryptocurrency managed to reach a new historical maximum of US$ 100,000, with a market capitalization of US$ 1.95 trillion and a daily trading volume exceeding US$ 83.5 billion. Many investors seek profitability in a scenario of high liquidity and in many cases, Bitcoin is positioned as the preferred alternative to achieve this.
In this scenario, we cannot forget the internal and external factors to the crypto market that shaped Bitcoin in recent months. “The approval of ETFs in the United States boosted institutional investment. Bitcoin reached new historical highs, favored by the halving and greater institutional interest. In addition, the growing regulation provided greater security and confidence for investors,” explained Tomás Villanueva, CEO of Skipo, a digital wallet focused on the purchase and sale of cryptocurrencies , to AméricaEconomía .
Villanueva also points to Donald Trump's victory in the US elections as a turning point for the role of Bitcoin in the global financial market. The now president-elect spoke out in his election campaign in favor of the friendly use and regulation of cryptocurrencies.
In doing so, he became the first “pro-crypto” US president in history, despite having rejected them in the past. This favorable stance, as well as the Republican tycoon’s alliance with technology leaders Elon Musk and Michael Saylor, could boost Bitcoin’s legitimacy as a safe haven asset worldwide.
THE REASONS FOR THE INCREASE
Fast forward to the present and the past few days have seen the Bitcoin price skyrocket. On December 5, the cryptocurrency surpassed the US$100,000 threshold, reaching around US$120,000. For Villanueva, this rise is explained by the growing institutional interest of MicroStrategy and Marathon Digital Holdings (MARA), digital asset companies, in purchasing large sums of the currency.
“For example, MicroStrategy acquired 27,200 BTC between October and November 2024, bringing its total holdings to 279,420 BTC. Additionally, Bitcoin exchange-traded funds (ETFs) have attracted significant flows from institutional investors, which has also boosted demand,” Villanueva added.
Skipo CEO also notes that the first quarter of 2025 will be an interesting period for the crypto market. There is no crystal ball behind this forecast, but the value of previous experiences is important. The fourth Bitcoin halving took place in April 2024 and it is expected that, like the previous ones, the first quarter of the following year will bring a positive performance for Bitcoin.
As an example, in the first quarter of 2017, its price rose by 11.89% and in 2021, it was a remarkable 103.17%. “However, it is important that macroeconomic factors such as interest rates and regulation also play an important role in market dynamics,” Villanueva clarified. And as usual, despite the optimism, caution must always be maintained in the crypto market. The expert recalls that sharp increases in Bitcoin are usually accompanied by high volatility.
He therefore recommends that users only invest amounts they are comfortable with and avoid using “leverage”. In other words, using borrowed capital to make larger trades. “These strategies can significantly increase risk in market conditions like the current ones,” he says.
