In mid-January, Bitcoin’s (BTC) expected 2025 rally appeared in danger as fears emerged amidst a downturn that the world’s premier cryptocurrency might not regain a footing until it collapsed to approximately $80,000.
BTC, however, received a second wind swiftly after a brief dip below $90,000 and entered a strong upswing that took it above $108,000 on January 20 and to its only slightly lower press time price of $107,323.
Considering that Bitcoin entered the year trading at about $93,500, even a recent January 1 investment would have returned a generous profit by Monday, January 20.
Picks for you
A $1k January 1 BTC investment would now be worth this much
Specifically, a $1,000 investment made on January 1 would have appreciated 14.78% and be, at press time, worth $1,147.84 – nearly $148 in profit in less than three weeks. Simultaneously, a trade made at the best possible moment – at the $89,260 lows of January 13 – would have grown 20.24% and be worth $1,202.36.
Furthermore, Bitcoin’s latest rally has been strong enough that almost every individual or entirety that ever purchased the cryptocurrency would be at least slightly in the green, and even the traders who bought at the highest price on record would still be fairly close to even, with a strong possibility of soon seeing profits.
Indeed, it is widely expected that 2025 will bring new and unprecedented highs for the world’s premier digital asset, with forecasts ranging from lows near $150,000 to highs above $800,000 – highs that would almost guarantee BTC overtakes gold to become the world’s biggest asset.
Elsewhere, it is important to note that Bitcoin’s continued strength – at least in the short and mid-term – is not guaranteed. To begin with, periods of sideways trading and even deep pullbacks are common after strong rallies, and despite its overall rise during the year, BTC spent a large part of 2024 on a slight decline.
Will the Bitcoin rally continue into February?
Additionally, the current rally is driven in large part by external factors such as the latest inflation data – which proved a bullish catalyst as it, despite painting a dangerous situation, proved better than expected – and by the enthusiasm arising from the inauguration of Donald Trump.
Part of this optimism arose from the promise that the Republican would create a strategic BTC reserve – and possibly an ‘America-first’ general cryptocurrency reserve.
Though far from confirmed and seemingly not in the cards for the much-discussed first day of rapid-fire executive orders, betters on Polymarket still estimate a U.S. Bitcoin treasury would be established in the first 100 days with a 55% majority.
The Trump factor, in particular, might be dangerous as the presidential family already alienated some in the community by a highly opportunistic – possibly even cynical – launch of a series of meme coins.
Such behavior could ultimately hamper the old and new President’s popularity and, depending on how close to a traditional pump-and-dump scheme it ends up being, could seriously jeopardize the Republican’s image as a crypto-friendly politician.
Featured image via Shutterstock
