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Bitcoin is back in the limelight (BTC -5.51%). After experiencing an essential price increase in 2024, the most popular cryptocurrency is again becoming increasingly popular, for better or worse. The price of Bitcoin has increased by almost 140% year to date (YTD) and has now approached $100,000.
While the incoming Trump administration discusses generating a Bitcoin strategic reserve, businesses such as MicroStrategy buy Bitcoin for their balance sheets. The current discussion around Bitcoin is highly optimistic. Able investors are aware that this has previously happened. Investors ' optimism about Bitcoin rose before a price crash in 2013, 2017, and 2021.
Is 2025 a significant crash year for cryptocurrencies? Let's explore Bitcoin crashing more thoroughly and see if it still fits your portfolio.
What Would Happen if Bitcoin Crashed to Zero?
Panic selling would be promoted by a Bitcoin fall. Anyone with Bitcoin would sell it as soon as possible if it crashed at prior unheard-of levels. There would be a sudden liquidity shortage due to this vast flight. After all, you need customers to sell Bitcoin. Orders just cannot be fulfilled without them.
There would probably be no one left to support with sales. As in the case of FTX, exchanges would probably stop trade. Additionally, exchanges would likely lack the capital necessary to process withdrawals in fiat currency. Financial institutions, including those that create Bitcoin ETFs, would also be impacted by such market problems. In the end, the ripple effect would be tragic.
Outstanding Rise of 2024
Two factors related to Bitcoin's rapid growth in 2024. First, cryptocurrency exchange-traded funds (ETFs) and Bitcoin were granted in January. This year, Bitcoin ETFs have spent tens of billions of dollars worth of Bitcoin for their consumers, indicating the financial industry's requirement for these products.
If you measure MicroStrategy and its Bitcoin buying binge, institutions purchased about 700,000 Bitcoins in 2024. Of the 21 million Bitcoins that will ever exist, that shows 3.3%. The cryptocurrency's price increased to more than $60,000 following the release of Bitcoin ETFs.
After that, it stayed at this level until about a month ago, when the US presidential election occurred. Investors were even more confident about the price of Bitcoin after Donald Trump won the elections. The US government would buy and maintain a sizable quantity of Bitcoin as part of the next administration's plans to build a Bitcoin Strategic Reserve.
The price of Bitcoin should increase because of this reserve. The cost of Bitcoin has risen by about 50% since the election and is presently trading at about $106,000. Bitcoin loses its fundamental earning power as an asset.
Because there is a limited number of digital tokens, the price of Bitcoin will only increase if more individuals are convinced that they should purchase it. Given that governmental commitments and institutional funding are stoking the rumours, it is not surprising that the cost of Bitcoin increased past $100,000 in late 2024.
Price predictions and gold comparisons
Predictions about Bitcoin's price differ significantly. Confident investors claim it will soon exceed $1 million or maybe $13 million per coin. Some stated it has no value. The direction that would raise the predictor's wealth is apparent across these price projections.
The one with a $13 million price prediction is Michael Saylor, CEO of MicroStrategy. Some investors call Bitcoin digital gold, thinking it will someday replace that historical store of market value. Since it is unclear how many quantities of gold are owned, the market capitalization of gold is estimated to be over $18 trillion today.
Assuming there are 21 million Bitcoins, an $18 trillion market capitalization would turn into $857,000, or around eight times the current price. As a result, investors may remain confident about the cryptocurrency.
Brett Price Prediction 2025
Based on our current price projection, by February 7, 2025, Brett's price is expected to raise by 227.13% to $0.43376. According to technical indicators, the Fear & Greed Index is presently at 78 (Extreme Greed), and the sentiment is bearish. Over the prior 30 days, Brett saw 12 out of 30 (40%) green days and 14.04% price volatility. The Brett forecast shows that now is not a good time to purchase Brett.
Uncertainty is the Only Certainty
There are unlimited conversations on Bitcoin. In all honesty, no one can pretend whether Bitcoin will drop, get stuck, or rise in 2025. Even if they turn out to be reliable, someone is lying if they claim they are positive about how the cost of Bitcoin will move.
Anyone can smartly make predictions. Before you toss a die, It can be noticed that it is "guaranteed" to fall on a six, with a one-in-six chance of doing so. That doesn't justify the Dice roll's possibilities. Bitcoin should be seen identically. If you support the long-term theory regarding currency adoption, digital gold, or anything else, then feel free to purchase it.
However, ignore trading the cryptocurrency with the incorrect opinion that the cost of Bitcoin would either skyrocket or plummet in 2025. Uncertainty is the only sure thing when it comes to Bitcoin and cryptocurrencies.
How to Handle Crypto Market Crash
Markets need time to develop and mature. This is especially true of the bitcoin sector, which has settled for over ten years. Additionally, bull runs and booms usually precede market dips or bearish runs. On the other hand, sharp declines typically accompany market booms. It is the market's method of self-balancing.
The advancements and creations in blockchain and cryptocurrency over the last ten years have been a reliable indicator of this sector's long-term potential. Here are five ways to handle the crypto crash.
- Apply Logic
- Monitor Onchain Metrics
- Educate Yourself
- Use Dollar-Cost Averaging
- Pay Attention to Macroeconomic Trends
Read Next: What Car Companies Accept Bitcoin As Payment?
Conclusion
Bitcoin's recent growth in 2024, which saw its price increase above $100,000, has renewed interest. Political debates and institutional investments have also contributed to its growth. The future is unknown, though, as history shows that price raises generally precede crashes.
Bitcoin should be appropriately managed by investors who are aware of the hazards and possible rewards. Although some see it as digital gold, market sentiment and broader adoption will decide its worth. As with any investment, handling Bitcoin's uncertain path requires careful thought and risk management.
Frequently Asked Questions
Q. Which crypto that will explode in 2025?
Ans: The crypto that will explode in 2025 might include Solana, Ethereum, or new AI-generated blockchain projects.
Q. How much is a coin worth on TikTok?
Ans: A TikTok coin is worth about 1 to 1.5 cents USD, based on your region and buy bundle.
Q. When will Bitcoin crash again?
Ans: Marko Bjegovic, developer of Arkomina Research, claimed that Bitcoin could crash in 2025 if the economy drops into a recession or the Fed makes a mistake.
