120% growth! Bitcoin outperformed most asset classes last year — will the momentum sustain for cryptos in 2025?

120% growth! Bitcoin outperformed most asset classes last year — will the momentum sustain for cryptos in 2025?

Bitcoin, the world’s largest cryptocurrency, achieved an impressive 120% growth in 2024, outpacing most other asset classes. However, its remarkable upward trajectory began to slow towards the end of 2024 and into the beginning of 2025, resulting in its first monthly decline since August 2024, according to a Bloomberg report.

In December, Bitcoin experienced a 3.2% drop as investors began taking profits after the extended rally. This pullback occurred ahead of the upcoming inauguration of Donald Trump as the 47th president of the United States, set for January 20, 2025. The market’s cautious stance reflects a mix of profit-taking and uncertainty surrounding the transition of power, which has influenced broader market sentiment.

Bitcoin’s 120% surge in 2024 marked a monumental year for the cryptocurrency, with its performance far outstripping that of traditional asset classes like stocks and commodities. This growth was driven by multiple factors, including institutional interest, favorable regulatory developments, and growing recognition of Bitcoin as a store of value in uncertain economic times.

However, the latter part of the year witnessed a slowdown, with Bitcoin experiencing a 3.2% dip in December. Analysts attribute this shift to a mix of profit-taking behavior from investors who had seen substantial gains throughout the year and concerns surrounding potential policy changes after Donald Trump's inauguration. The anticipation of his return to office added a layer of uncertainty to the markets, contributing to a cautious approach among investors.

While Bitcoin’s price dip was notable, some experts believe it could be a temporary correction before another possible upward swing. As Trump prepares to take office in 2025, it remains to be seen how his administration will affect the broader cryptocurrency landscape. Bitcoin’s resilience through 2024 and its ability to maintain its value in the face of political uncertainty indicate that, despite the recent dip, the cryptocurrency may continue to attract long-term interest and investments.

The final quarter of 2024 and the beginning of 2025 have shown that while Bitcoin remains volatile, its overall trajectory appears bullish, particularly as market sentiment stabilizes post-inauguration. Investors and analysts are now closely watching the cryptocurrency’s performance as it enters the new year, hoping for further adoption and integration into mainstream finance.