#Crypto2025Trends Trump’s re-election sparked a bitcoin rally, and crypto enthusiasts are bullish on 2025. We look at the likely price drivers for the leading cryptocurrency in the year ahead, the role asset managers will play in making it increasingly mainstream, and likely changes in the regulatory landscape.
Bitcoin’s recovery
The crypto winter of 2021 and 2022 seems like a distant memory now. It was a major crisis for cryptocurrencies, during which the price of bitcoin crashed below $20,000, losing 75% in 12 months. Today, BTC is hovering around $100,000, after hitting $103,000 last week.
Such a turnaround is impressive, but bitcoin’s history is one of extreme highs and lows, says John Plassard, senior investment specialist at Mirabaud Group, interviewed by Morningstar: “Bitcoin’s unprecedented rise reflects a mix of increased legitimacy and growing demand, but history suggests caution as the price trajectory has been marked by sharp corrections after periods of exponential growth.”
Cryptocurrencies are known for their high volatility. Prices can fluctuate significantly in short periods, driven by factors such as market sentiment and risk appetite, regulatory changes, technological developments and macroeconomic trends.$BTC