The entire year of 2024 will be a period of significant growth for Bitcoin, while other cryptocurrencies, aside from SUI and Solana which show slightly larger gains, will largely stagnate. On December 17, 2024, after Bitcoin broke the $100,000 mark, it saw a significant pullback; however, there are signs of another potential breakout above $100,000 in the last two days.
In 2024, Bitcoin's halving will reduce its issuance rate, leading to a supply shortage, and subsequently, with the approval of Bitcoin ETFs, its price will soar to new historical highs. This will be followed by a surge in altcoin speculation, with investors leaning towards achieving higher returns, leading to a full-blown altcoin season. However, currently, the altcoin market has not seen explosive growth. In January 2025, Bitcoin is expected to break the $100,000 mark again, ushering in a massive explosion of the altcoin season, and the familiar classic formula of the bull market will reappear.
In January 2025, multiple positive factors will give rise to an altcoin season in the cryptocurrency space, with the main positives being the following four points.
Firstly, the FTX debtor restructuring plan will take effect on January 3, 2025. To qualify for distribution, customers and other creditors must complete pre-distribution conditions, including selecting a distribution agent on the FTX debtor customer portal. The initial distribution will be made within 60 days after the effective date of January 3, 2025, to holders approved for claims in the plan. According to the FTX plan, the first group of convenience users will be compensated first, including users with claim amounts of $50,000 or less. Registration and payment dates for other categories of claims will be announced later.
On January 11, Musk's SpaceX second-generation Starship S33 was sent to the Macy launch site for the seventh Starship launch.
On January 20, 2025, Trump will officially take the oath of office as the 47th President of the United States and fulfill his ten commitments to be friendly to cryptocurrencies.
On January 25, Musk will enable DOGE payments on X. Last year, Musk officially launched the Xpayments account on the X platform, paving the way for the payment function and preparing for potential integration or collaboration between Dogecoin and X. Currently, Musk's X platform has obtained remittance licenses in 15 states in the U.S., and the company will enable DOGE peer-to-peer payment functions on the 25th of this month.
There are still secondary positive factors and uncertainties. The Federal Reserve's interest rate meeting on January 9, U.S. non-farm payroll data on January 10, U.S. Bureau of Labor Statistics CPI data release on January 15, and the Federal Reserve's interest rate decision on January 30.
2025 is a special year. The launch of Bitcoin spot ETFs has brought a significant influx of traditional financial capital into the cryptocurrency market. Institutional funds flowing into these ETFs have triggered a supply shock for Bitcoin, enhancing its dominance. Bitcoin's dominance coupled with stable Bitcoin prices means altcoin sell-offs. During this bull market cycle, Bitcoin spot ETFs have extended Bitcoin's dominance. This new variable did not exist in previous bull markets, making the altcoin season in 2025 undoubtedly unique.
Trump's victory has undoubtedly shaken the crypto world. (The Bitcoin Act) has sparked intense debate in both crypto and non-crypto circles. If passed, the Senate legislation will require the Treasury and the Federal Reserve to purchase 200,000 Bitcoins annually over five years to accumulate one million Bitcoins.
With Bitcoin maintaining its dominance, high interest rates, and U.S. support for cryptocurrency regulations, insiders in the crypto space should expect a comprehensive super cycle of altcoins in 2025.
In January of this year, we will see a rapid increase in altcoin prices, outperforming Bitcoin, especially for larger market cap altcoins. Not only are altcoins overall on the rise, but their gains are greater than those of Bitcoin.
The dominance of altcoins is soaring, similar to the altcoin season in May 2021. These tokens dominate the market, with the total market cap of the top 100 altcoins reaching 1.3 times that of Bitcoin. FOMO-driven sentiment, high trading volume, and high risk push investors to intensify their purchases of altcoins.
The upcoming altcoin season may differ significantly from traditional seasonal habits, but certain niche segments have already secured a place in the cryptocurrency space. The crypto market has entered a new level of narrative dominance.
The cryptocurrency market is largely driven by sentiment, so please pay attention to new regulatory initiatives, new macroeconomic trends, or new crypto-native narratives, focusing on new public chains, new DeFi, new AI, and new meme coins.
Not all altcoins will follow the dynamic changes in Bitcoin prices during this bull market in 2025. Historical bull markets show that projects with strong fundamentals or that align with emerging narratives perform better. Focus should be on projects with strong fundamentals, active teams, large communities, and high market alignment.
Trump will officially take office in just over ten days. Both Trump and Musk are supporters of cryptocurrencies, and if they increase their investments in the crypto market or introduce supportive policies, the crypto market will undoubtedly take off, leading to a major altcoin season. Reject the noise and do not exit before dawn; the next phase is a violent surge in altcoins.