BITCOIN THE PHOENIX
The 'cryptocurrency winter' of 2021 and 2022 seems like a distant memory. It was a major crisis for cryptocurrencies, during which the price of bitcoin collapsed below $20,000, losing 75% in 12 months.
Such a turnaround is impressive, but bitcoin's history is marked by extreme highs and lows. The unprecedented rise of bitcoin reflects a mix of increased legitimacy and growing demand, but history urges caution as bitcoin's price trajectory has been marked by brutal corrections following periods of exponential growth.
Cryptocurrencies are synonymous with high volatility. Prices can fluctuate significantly over short periods due to factors such as market sentiment and risk appetite, regulatory news, technological developments, and macroeconomic trends.
Corrections are part of bitcoin's history and are essential to price dynamics. These downward adjustments, which generally range from 20 to 40%, are a crucial mechanism for restoring market balance and are an integral part of bitcoin's historical price evolution.
Investors should approach investing in bitcoin knowing that volatility is an inherent characteristic. This means they should prepare for potentially significant price corrections and declines in value, regardless of the current price or market conditions.
What is certain is that investors must also recognize that volatility can work both ways: while it offers the possibility of substantial gains upward, it is also subject to the risk of significant losses.
EVEN AI COULDN'T PREDICT THE FUTURE!
Analysts all agree on this point: making predictions about cryptocurrency prices is a very risky exercise. In 2025, the future of bitcoin is both promising and uncertain.
The increasing integration of bitcoin into mainstream finance through spot ETFs and institutional adoption suggests that it may maintain its position as a legitimate asset class.
However, its performance will depend on macroeconomic factors, market liquidity, and regulatory policies under the Trump administration.
If the current trajectory continues, bitcoin could see renewed growth, although market volatility and corrections are likely to be part of its story.
Among the possible positive factors for bitcoin in 2025, persistent inflationary pressures and uncertainty in monetary policy are driving interest in bitcoin as a 'store of value'.
Ongoing projects foresee the creation of specialized administrative offices for digital assets as well as the appointment of a 'crypto tsar' who would be responsible for deliberating and regulating the sector. Ripple's CEO, Brad Garlinghouse, is rumored to play this role.
These measures suggest a possible streamlining of regulatory processes and greater integration of digital assets into traditional financial systems, which could foster innovation and growth.
