Cryptocurrencies witnessed a remarkable rise in early 2025, led by Bitcoin, the largest and most popular digital currency in terms of market value. This rise came after Bitcoin ended 2024 with strong gains, supported by the expected economic policies of US President-elect Donald Trump, which were favorable to the cryptocurrency industry.
During his election campaign, Trump made many promises supporting the cryptocurrency sector, raising questions about the extent to which these promises can be implemented. Although some see these statements as part of advertising strategies to attract crypto sector, which spent more than $ 130 million to support its interests during elections, current indicators indicate that digital currencies may witness a positive year, provided that there are no negative surprises.
Gradual momentum in the rise of cryptocurrencies led by Bitcoin
Although the large rise in cryptocurrency prices at the beginning of the year may have seemed sudden, the momentum was gradual. Developments that supported this sector began in early 2023. One of the most prominent of these developments was the decision of the Chairman of the US Securities and Exchange Commission, Gary Gensler, who is nicknamed “enemy of the industry,” to approve the creation of exchange-traded funds that invest in Bitcoin. This move, which was announced in January 2023, facilitated the entry of new investors into the market and increased the liquidity of Bitcoin.
These moves led to an increase in the number of Ethereum-invested ETFs, bringing the total to 12. Since Trump’s election victory until early December, these funds have attracted about $10 billion. The developments were not limited to investment funds only, as the sector also witnessed the entry of many new companies, in addition to the strengthening of their activity in the market. For example, Visa and Coinbase allowed users to easily transfer funds between bank accounts and cryptocurrency wallets.
The impact of Trump’s victory on the Cryptocurrencies market
Trump’s election victory had a major impact on the cryptocurrency market, helping Bitcoin’s price to hit $100,000 for the first time. This rise came despite the halving that cut mining rewards in half. Other cryptocurrencies, such as XRP, also saw a significant rise, making it the third-largest cryptocurrency by market cap.
In addition, Trump appointed cryptocurrency advocates to key positions in his administration. Most notably, he created a new position in the White House for artificial intelligence and cryptocurrencies, nominating David Sachs to take on the role. He also proposed appointing Paul Atkins to head the Securities and Exchange Commission, replacing Gary Gensler, giving the sector an additional boost.
Bitcoin and cryptocurrency outlook
Trump’s victory and important appointments have given the market optimism, with Bitcoin prices rising by more than 120% over the past year, outperforming gold and most stocks. According to many investment houses, Bitcoin prices could reach between $150,000 and $250,000 by 2025. Although Bernstein had the lowest forecast, some companies such as Bitwise and FundStrat had expected higher numbers.
However, despite this optimism, some experts, such as Patrick Bosch of VanEck, believe that the market may witness volatility and price corrections in the future. Others are skeptical about the possibility of the US government creating a reserve of Bitcoin, due to the potential risks that may arise from such a move, such as market volatility and its impact on the value of gold, as investors may turn to cryptocurrencies as an alternative.
In this context, Bloomberg reports that any major government intervention could make the United States a major player in the market, which could cause significant volatility and affect the balance of the global market. These developments have the market in a state of anticipation of the US government’s next steps.
The impact of cryptocurrencies and Bitcoin on the global economy
Market Now At the moment, Bitcoin (BTC) is trading at $95,671.3, up 2.02% in the last 24 hours. Ethereum (ETH) is trading at $3,414.98, up 1.94%. Ripple (XRP), on the other hand, is trading at $2.3575, up 9.87%. However, Binance Coin (BNB) is down slightly by -0.16% to $705.98. Solana (SOL) is up 8.07% to $205.490. Dogecoin (DOGE) is up 4.17% to $0.331649. Finally, Cardano (ADA) rose by 8.39% to reach $0.9300.
Cryptocurrencies, especially Bitcoin, are increasingly influential in the global economy. As a result, governments and central banks around the world continue to study this phenomenon, seeking to understand its potential impact on the traditional financial system.
In the United States, cryptocurrencies are witnessing increasing government support, with expectations of implementing supportive policies for the industry increasing. The growing interest from major companies in the digital sector, such as MicroStrategy, Facebook, and PayPal, has also helped boost the value of cryptocurrencies and increase their popularity among investors.
As 2025 begins, the cryptocurrency sector continues to make significant gains, led by Bitcoin, which has set new records. In addition, future forecasts indicate that Bitcoin may reach even higher levels in light of the expected political support from the Trump administration.
However, like any other financial sector, the cryptocurrency market faces significant challenges, including sharp fluctuations that may affect investors in this sector. In light of this, the most important question remains: Will these currencies continue to outperform traditional markets, or will they face severe fluctuations that may lead to significant changes in their value?
