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Trends & Analysis
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Trends & Analysis
News

Gold prices ease after hitting record high

News

Week Ahead Preview: 17th of February

News

Europe stocks hit record high on strong earnings

News

BRIC currencies mostly gain as US inflation rises

News

Refresh your portfolio with Coca-Cola?

News

GBP/USD price may rally to multi-week high

Analysis

Top 2024 Crypto trends:

are they likely to continue in 2025?

January 21, 2025

Disclaimer: This article is an educational guide to the financial markets and should not be considered as advice. Trading CFDs is high risk. Always ensure you understand the potential risks and rewards associated with trading before you trade.

Recap: 2024 cryptocurrency trends

2024 was one of the most exciting years yet in the cryptocurrency market. The original and most famous cryptocurrency Bitcoin experienced an enormous rally, soaring from $42,265 on January 1st to $93,429 on December 31st. This followed a similar +100% rally in 2023, and took the cryptocurrency to unprecedented heights. Critical events influencing Bitcoin’s price trajectory in 2024 included a January SEC ruling that approved the US launch of spot Bitcoin ETFs, the election of Donald Trump as US President in November, and the appointment of pro-crypto SEC head Paul Atkins in December. The last of these events saw prices briefly closing above $100,000 in early December, an all-time record for the cryptocurrency. Bitcoin improved its relative market position in 2024, when other coins experienced slightly less spectacular rallies, with Litecoin finishing 2024 up 50%, and Ethereum 44%, in line with the general growth of the crypto market.

 

“Bitcoin’s 2024 price rally leaves one obvious question for crypto traders: can it happen again?”

 

2025: events so far

2025 promises to be another turbulent year in cryptocurrency markets. Many in the industry pinned their hopes on incoming US President Donald Trump taking a soft stance on regulation, and the pick of Paul Atkins as SEC head provided a strong bullish signal for the cryptocurrency. Prices in January 2025 were at or near all-time highs, and cryptocurrencies including Bitcoin and Ethereum continue to be traded by major financial institutions, directly and through ETFs or derivatives.

 

Presidential meme coins: market disruptor?

Although markets are buoyant, the first few weeks of 2025 have been chaotic. In January, Trump announced the launch of the $TRUMP coin, which immediately soared in value in a flurry of speculative trading. This is considered a ‘meme coin’, which is a cryptocurrency launched with extensive online marketing, often based around a joke or topical event, and usually dumped by the owner if and when the price rises. Although some meme coins, notably Dogecoin, have retained value over time, in general this is a very dubious practice and meme coins are often viewed negatively by serious crypto traders.

What happens next?

Given a wallet alleged to belong to the president contains 80% of the total $TRUMP coins, it is likely this asset will collapse in value when he begins to sell. This could have serious repercussions for the wider crypto market, and the entire $TRUMP saga is one of the crypto market’s highest-profile tests of recent years. The timing and nature of the Trump meme coin announcement is bizarre, and may spook some traders. A loss of confidence in the overall market would have devastating effects on better-known coins such as Bitcoin, Bitcoin Cash, and Litecoin. Bizarrely, Melania Trump, the incoming first lady, launched a rival coin on the 19th January, causing a precipitous 50% decline in the price of $TRUMP in the hours following its announcement. It is possible publicity will bring new investors into crypto, but this sort of activity will stiffen the resolve of regulators to clamp down on fringe crypto trading practices such as meme coins.

What are the prospects for Bitcoin in 2025?

So far, the price of Bitcoin has not been negatively impacted by the flurry of activity around the Trump meme coin. Analysts have long viewed Bitcoin’s future price trajectory[A1]  as dependant on three things: regulatory acceptance, use in payments, and investor sentiment both on Bitcoin itself and cryptocurrencies in general. High long-term estimates once considered laughable, such as $100,000, have already been breached, and the position of Bitcoin evangelists who claim a long-term target of $500,000 or even $1 million now seems less far-fetched. Bitcoin ETFs, already popular outside of the US, finally received the regulatory go-ahead from the SEC in 2024 and look set to bring new traders into these volatile markets.

Vulnerabilities

Despite great enthusiasm, Bitcoin and other crypto assets are vulnerable. Financial regulators may take a harsher line against the still lightly regulated, largely anonymous world of crypto finance in the future. Even if cryptocurrencies perform well in general, it is possible traders will lose interest in Bitcoin as more and more rival coins enter circulation. In 2024, main rivals Litecoin and Bitcoin Cash somewhat underperformed Bitcoin, which dominated in a market featuring news-driven, sentiment-based price action. Media coverage has an important role in the classic price bubble formation that Bitcoin critics have repeatedly warned about, admittedly without any success in their predictions to date. Although there has been progress in terms of mainstream acceptance, long-standing issues such as the vulnerability of cryptocurrency exchanges remain downside risks. ADSS traders can avoid the potential problems of exchanges and holding underlying crypto assets by trading crypto CFDs.

How likely are 2024 Bitcoin trends to continue?

Bitcoin benefited from a run of positive announcements in 2024, with traders and investors mostly expressing hope that regulatory and financial acceptance would continue at pace. Overall, the market capitalisation of all crypto assets increased by 50%, with Bitcoin improving its relative position amongst challenger coins. It is possible that 2025 will see further concentration of crypto trading in Bitcoin, and the relative price performance of Bitcoin versus challenger currencies is a key metric for traders to follow. Technical questions, such as the March 2024 Bitcoin halving event, were shrugged off by bullish markets, and no further halvings are planned.

2025 crypto trends: more of the same?

It is possible the same environment will continue through 2025, but aside from questions of regulation, general market conditions have a strong influence on crypto prices. Previous Bitcoin peaks in 2018 coincided with equity market tops, and prices in volatile crypto assets are a good overall gauge of ‘risk on’ sentiment. That means crypto traders need to pay close attention to overall stock market sentiment as well as the price movements of different coins. General economic trouble, regulatory action, or a loss of investor interest could all see dramatic falls in the price of Bitcoin and associated cryptocurrencies.

What drives crypto prices?

Cryptocurrency prices are driven by supply and demand. Cryptocurrencies are not commodities, or income-generating assets like bonds, and do not represent a claim of ownership in a company like stocks, or of its debt. That means supply and demand are mostly dependent on market sentiment, which in turn is driven by price action and publicity, including online forums and social media as well as mainstream media coverage. Generally, extensive media coverage of cryptocurrencies coincides with price increases, and with crypto set to stay top of the agenda in financial news, this may provide tailwinds to 2025 crypto trends. Conversely, negative press coverage increases the possibility of renewed regulatory action against this volatile market.

 

Conclusion

Bitcoin is a highly volatile asset, and this is why traders appreciate it. The big debates over Bitcoin in 2025 are similar to last year’s: institutional acceptance, regulation, and market stability. 2024 crypto trends proved a near copy of 2023, with Bitcoin doubling in price despite concerns about volatility and increased regulatory scrutiny. But this is no guarantee the same thing will happen in 2025. Already, meme coin activity is bringing negative media coverage to the crypto market. If this continues, regulators and policymakers may sour on 2024’s crypto stars, and harsher reporting, tax, and capital gains rules could cause serious downside risk. In recent years, crypto has defeated all bearish predictions, but the underlying problems and vulnerabilities of the market haven’t gone away. That makes for upside potential but also enormous downside risk. 2025 will prove another pivotal year for the currency, but as always traders should be extremely cautious, using stop orders and minimising leverage when trading these highly volatile financial assets.

FAQs

Bitcoin hit record highs in 2024, what can we realistically expect for Bitcoin in 2025?

Based on 2024 crypto trends, Bitcoin’s trajectory appears positive, driven by institutional adoption through spot Bitcoin ETFs. However, market dynamics could shift significantly. The SEC’s approval of spot Bitcoin ETFs is a milestone in Bitcoin regulation, but took place via a reversal of a previous ruling, and is unlikely to be the final word in US regulation. Crypto assets have upside potential, but enormous downside risk.

How is the Trump meme coin situation affecting new crypto trends and overall market stability?

The Trump meme coin launch in early 2025 has introduced significant uncertainty into cryptocurrency price trends. With 80% of tokens allegedly held in a single wallet, this raises serious concerns about market manipulation. The subsequent launch of a competing coin by Melania Trump, causing a 50% one-hour drop in $TRUMP’s value, is a classic example of the volatility in meme coin markets. This situation could trigger stricter regulatory oversight of the entire cryptocurrency sector, potentially impacting established currencies like Bitcoin and Litecoin.

What key cryptocurrency market factors should investors watch in 2025?

Several factors will influence 2025 crypto trends. First, the adoption of spot Bitcoin ETFs and other crypto projects by traditional financial institutions is important for the coins’ wider acceptance. As in 2024, regulatory developments under the new administration will shape market confidence. 2024 saw a Litecoin rally that broadly reflected the increase in market capitalisation for all crypto assets, while Bitcoin expanded faster than the general market. It is possible 2025 will see further concentration in Bitcoin.


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