The ignition of a new phase of the 2024 cryptocurrency bull market in early November appeared to promise a parabolic Christmas for Bitcoin (BTC) but as more recent trading proved, something might have burned out during the rocketing.
Specifically, after surging 56% from $67,811 on November 5 to the all-time high (ATH) above $108,000 on December 17, BTC plunged to its press time price of $97,621, erasing approximately $180 billion from its market capitalization.
Indeed, at its recent high, the total valuation of the world’s premier cryptocurrency exceeded $2.14 trillion. In contrast, on December 24, data from Finbold revealed BTC stood at $1.93 trillion at the time of publication.
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Can Bitcoin still enjoy the ‘Santa Claus’ rally in 2024?
Despite the magnitude of the collapse, it is equally worth pointing out that Bitcoin’s market capitalization remains approximately $600 billion above where it stood on election day. Furthermore, the latest trend is, at press time, one of recovery as BTC’s valuation is substantially above the 7-day lows close to $1.83 trillion.
Additionally, either a ‘Santa Claus’ or an early 2025 rally appears in the cards, despite crypto market ‘Grinch’ seemingly stealing the hoped-for year’s end parabolic surge, as Bitcoin’s recent drop was dictated by external factors.
The world’s premier cryptocurrency fell victim to the latest Federal Open Market Committee (FOMC) announcement that simultaneously – and temporarily – wiped $1.5 trillion from the U.S. stock market as investors again began fearing higher inflation and higher interest rates in the new year.
Bitcoin price prediction for 2025
Looking ahead to 2025, the most recent expert forecasts paint a bullish picture for the upcoming year. For example, the prominent Wall Street analyst Tom Lee estimated that $250,000 is a plausible 12-month price target for Bitcoin.
Robert Kiyosaki, a prominent and persistent BTC bull, set his sights for the new year at $350,000, while Perianne Boring, a cryptocurrency lobbyist, revealed that $800,000 is plausible according to some models.
In the more immediate future, prior analysis conducted by the on-chain analyst Ali Martinez indicates that having rebounded well above $95,000, Bitcoin is safe from a greater drop but that it could face substantial resistance at $125,000 and $150,000.
Martinez is also somewhat less bullish than Kiyosaki or Tom Lee, as he estimated BTC will top near $220,000 in the current cycle.
Featured image via Shutterstock
