The "Morning Star" website published a report that highlighted the expectations of investors and experts regarding cryptocurrencies in the coming year, explaining that the history of Bitcoin is characterized by sharp fluctuations between its price increases and decreases.
The site stated in the report translated by "Arabi21" that due to the impact of Donald Trump's victory, the leading cryptocurrency achieved a record high in its prices, making investors optimistic about the performance of digital currencies in 2025, but the possibility of a sharp decline remains.
Bitcoin Recovery
According to the report, it seems that the harsh winter that cryptocurrencies went through between 2021 and 2022 has become just a distant memory, as that period witnessed a serious crisis for digital currencies, where the price of Bitcoin collapsed to below $20,000, losing 75% of its value over 12 months. Today, the price of Bitcoin hovers around $100,000, having reached $103,000 last week.
The report indicated that this shift is considered remarkable, but the history of Bitcoin is characterized by sharp fluctuations between rises and falls. John Plassard, senior investment specialist at Mirabaud Group, said in an interview with Morning Star: "The unprecedented rise of Bitcoin reflects a mix of increasing legitimacy and rising demand, but history indicates the need for caution, as the price trajectory has seen sharp turns after periods of record highs."
The report confirmed that cryptocurrencies are known for their extreme volatility, and their prices can drop sharply over short periods, driven by several factors such as market fears, risk appetite, regulatory actions, technological developments, and macroeconomic trends.$BTC
