Bitcoin’s growth prospects in 2025 are supported by ARK Invest’s report and Trump’s crypto-friendly policies - IcoHolder.
Bitcoin (BTC) entered 2025 with optimism, bolstered by insights from ARK Invest’s December report suggesting the cryptocurrency has room for further growth. Despite a turbulent close to 2024, where Bitcoin briefly surpassed $100,000 before retreating, ARK’s analysis emphasizes that the asset’s recent volatility is well within historical norms.
ARK Invest’s The Bitcoin Monthly report highlighted Bitcoin’s low relative volatility in December. While the cryptocurrency experienced sharp price swings, these fluctuations were mild compared to previous cycles. According to ARK’s accompanying chart, Bitcoin’s monthly volatility was considerably tamer than its annual volatility in the fourth quarter, indicating that the asset hasn’t yet entered the mania phase typical of a bull market peak.
“This data suggests room for further market expansion during 2025,” the report stated, pointing to the potential for additional upward momentum.
The report also underscored bullish indicators such as strong holder behavior and increasing mining difficulty. Notably, 62% of Bitcoin’s supply remained untouched for over a year, even as the cryptocurrency recorded over 100% gains in 2024. This steadfast confidence among long-term holders is a positive signal for future price stability and growth.
Bitcoin’s price rally above $100,000 in December was catalyzed by the election of Donald Trump, who campaigned on a platform of making the United States a global leader in cryptocurrency.
Ahead of his January 20 inauguration, Trump has made strategic pro-crypto appointments, naming Paul Atkins to lead the Securities and Exchange Commission and David Sacks as his top crypto and AI adviser. These moves have been met with widespread approval from the crypto community.
Pantera Capital projects that Trump’s administration will legitimize Bitcoin and other cryptocurrencies further, potentially driving prices to new all-time highs. According to The Washington Post, Trump plans to sign crypto-specific executive orders on his first day in office, which could clarify regulations and solidify cryptocurrency’s position in the financial ecosystem.
As Bitcoin heads into 2025, the combination of historical stability, strong holder behavior, and a favorable political climate is laying the groundwork for further growth. ARK Invest’s analysis reinforces the notion that Bitcoin is poised for a continued bull run, supported by increasing institutional interest and regulatory clarity under the incoming administration.
With optimism building around Trump’s crypto-focused policies and Bitcoin maintaining strong technical and market fundamentals, 2025 could mark a pivotal year for the cryptocurrency’s role in the global financial system.
