Bitcoin’s value has increased exponentially in the past decade, with global investors making it one of the most profitable digital assets in the world. With an exciting development story and history, Bitcoin has reached the importance of stocks and bonds, as it can bring considerable returns with enough patience and research.
However, Bitcoin is susceptible to controversy due to its high volatility spikes, which can bring down prices in a matter of days. For example, the Bitcoin price USD prediction experienced several crashes in its first operating years, following a few years of improvement. After that, in 2017, Bitcoin crashed almost yearly.
So, regarding stability, Bitcoin might not be the best asset to invest in. Still, if we look at the bigger picture of how cryptocurrency is performed, we can accurately predict how to buy Bitcoin.
Regulation might attract more investors
Cryptocurrency regulation is needed to make the ecosystem safer and less prone to scams, which is why more governments are working towards creating a comprehensive legal framework to make these digital assets approachable.
The US SEC has made considerable efforts towards this goal by approving a few BTC ETF projects, attracting a massive number of investors in a short time, which increased their value considerably. At the same time, the EU has recently employed the MiCA regulation, which is supposed to protect users and preserve financial stability within the crypto environment.
While many fear that investing in Bitcoin will be limited by laws, the truth is that opening the doors to such possibilities will allow more people to access crypto assets and counteract the effects of inflation without compromising their lifestyles.
Demand will increase due to halvings
When Satoshi Nakamoto developed Bitcoin, he introduced an automatic feature called the halving to reduce the mining reward by half every four years since its creation. When this event occurs, Bitcoin becomes scarcer, but there’s an increasing demand to acquire it, which boosts prices and overall value.
This was also the case during this year’s halving, which recently happened when the 6.25 BTC reward got to 3.125 BTC, pushing the price upwards right before the event, taking it to $60,000 in February. Since then, the price has slowly but steadily increased, and experts forecast that it will take about three months until Bitcoin will return to its previous values. Still, the trend will happen every halving, and until users mine the last Bitcoin, so it’s clear that prices will boom.
The number of crypto users will increase
Crypto firms forecast that by the end of 2025, they will establish an impressive threshold of one billion crypto users worldwide. Considering that most hold Bitcoin, an increasing audience will definitely boost the cryptocurrency, making it more approachable globally.
One billion users could bring crypto adoption into the mainstream, as Bitcoin has the potential to become the next most famous investment asset in the world. However, this event also depends on factors like overall development and technology adaptation because innovation attracts more developers and investors to an industry.
Still, the crypto sector is continuously improving, with cryptocurrencies like Ethereum employing new updates frequently, DeFi applications contributing to changing traditional systems, and NFTs setting the ground for Web3 to settle down.
New highs recorded one year after past halvings
Another reason why Bitcoin will perform considerably well in 2025 is that past halvings showed a significant rise in prices one year after the initial halving. If we look at the events from 2012, 2016, and 2020, we can see how Bitcoin’s price significantly increased even by 559% following the 2020 halving.
Bitcoin might become even bigger this time since the SEC might approve even more ETF projects. Investors have been really excited about these BTC-based assets because they’re safe and yield good results but don’t require users to hold the underlying Bitcoin asset.
Knowing this, investors might put more effort into their investments and portfolio diversification next year, especially since additional innovative BTC-based assets, like Runes, are providing opportunities for crypto exposure.
However, investors should be wary of miners’ actions
Unfortunately, every halving comes with fewer rewards for miners, which puts the network at risk since they safeguard it. Since the mining reward is less than half, miners will face difficulties in continuing their operations even if they’re part of mining pools. That’s because mining requirements are already difficult to handle, computational power is expensive, and strategizing mining is complex.
Some speculated that after this year’s halving the network will be at risk of experiencing more scams and attacks since fewer miners will ensure the blockchain and network are safe. And if this truly happens, the Bitcoin price will suffer considerably since fewer investors will trust its security.
Miners should prepare a safety net long before each halving because mining gets more complicated as scarcity increases. If anyone could mine Bitcoin on a regular laptop before, this would not be possible now, when users need expensive rigs and competitive technologies.
Preparing for price spikes through diversification
The best and safest way to withstand Bitcoin’s price spikes is by diversifying your investment portfolio. While Bitcoin can be a significant part of your portfolio, it’s best to look into altcoins like Ethereum, which is constantly improving, or Solana, a green cryptocurrency, because they spur innovation and, therefore, value.
At the same time, watch out for other crypto projects like NFTs, DeFi applications, DAOs, Ordinals, and anything else that seems promising and profitable. Investing even a seemingly insignificant amount can contribute to a strong portfolio that can get you through any volatile Bitcoin moment.
Do you think Bitcoin will exceed expectations in 2025?
Bitcoin is one of the most important cryptocurrencies on the market. It has performed impressively in the past years despite governments’ fear that it will mess up the financial system. Considering its history, crypto experts foresee a great future for the Bitcoin price that will be triggered by one billion crypto users, increasing demand, and enhanced crypto regulation.
