Bitcoin Price More Than Doubles in 1 Year, Will It Soon Replace Gold in the Next Decade?

Bitcoin - the world's largest and most popular cryptocurrency - broke the $100,000 threshold for the first time in early December 2024, a milestone that sparked excitement among supporters of the asset.

Bitcoin is getting rocket fuel to skyrocket on optimism about the possibility of easing regulatory barriers as Donald Trump is about to return to the US presidency. (Source: Kitco)

Bitcoin has more than doubled in value by 2024, buoyed by US regulators approving spot Bitcoin exchange-traded funds (ETFs) and optimism about the potential for easing regulatory barriers as Donald Trump prepares to return to the White House.

Bitcoin's more than 120% price increase in 2024 and the second-largest cryptocurrency ether's nearly 50% price increase have pushed the cryptocurrency's market value to around $3.5 trillion, according to data from exchange CoinGecko.

Most crypto stocks have also benefited from the rally. The biggest winners of 2024 are software company MicroStrategy, cryptocurrency exchange Coinbase and Bitcoin mining company Hut 8.

Analysts predict the cryptocurrency's bull run will continue into 2025. In a note to clients in early December 2024, analysts at brokerage firm Bernstein said they believe $100,000 is not the end of the line. They even expect bitcoin to reach a cycle high of $200,000 by the end of 2025.

Bernstein expects Bitcoin to emerge as the leading ‘store of value’ asset to replace gold over the next decade, become a fixture in institutions’ multi-asset allocation plans, and become the standard for corporate cash management.

Much of the optimism began in January 2024, when the US Securities and Exchange Commission (SEC) approved the first ETFs tracking the spot price of Bitcoin, marking a major turning point for the cryptocurrency industry as a whole.

The victory of Mr Trump, who pledged to make the US the “cryptocurrency capital of the planet”, further cements the industry’s position by the end of 2024.

In contrast, some crypto mining companies have struggled with shrinking margins due to higher energy and hardware costs, missing out on the 2024 bull run. Shares of Riot Platforms, Marathon Digital and Bit Digital have fallen between 26% and 32% in 2024.

Source: https://baoquocte.vn/gia-bitcoin-tang-hon-gap-doi-trong-1-nam-som-thay-the-vi-tri-cua-vang-trong-thap-ky-toi-299381.html