In a blog post on Tuesday, the chief investment officer for an institutional-grade Bitcoin ETF issuer articulated a notable trend in cryptocurrency investments:
“Two years ago, it was common for Bitwise clients to allocate ~1% of their portfolio to bitcoin and other crypto assets, an amount they could easily afford to lose.”
However, he has noticed a significant shift over the past 24 months:
“In today’s environment, it’s a different story. We more frequently see 3% allocations. As more of the world wakes up to the massive derisking we’ve seen in bitcoin, I think you’ll see this number rise to 5% and beyond.”
ABC’s “Shark Tank” investing star Kevin O’Leary exemplified this trajectory with his own investments, having devoted 3% of his portfolio to BTC in 2021 and increasing that to 5% a year later.
As the landscape continues to evolve, here are five key factors driving support for Bitcoin’s price growth into 2025:
1. Bullish BTC Falling Flag Continuation Pattern
Following a correction from the January 20 historic record high of $109,000, Bitcoin’s price rallied for 14 days starting on March 10, climbing from $78,500 to $87,450 by March 25 (+12% gain). This marked a decisive breakout and confirmed a bullish continuation pattern, often signaling an impending upward trend.
As Investopedia explains, traders rely on these patterns as they indicate setups for entering trends poised for continuation. In Bitcoin’s case, the volume matched the price movements, further validating this bullish sign.
2. Bitcoin Price Rally on Trump Tariff Pivot
Recent movements in Bitcoin’s price also benefited from President Donald Trump’s pivot on tariffs. After a period of price decline in February due to tariff-related anxieties, Bitcoin began recovering shortly after Trump eased restrictions on imports. Reports suggesting a narrowing of tariff agendas contributed to this upward momentum.
As Trump indicated in a March interview:
“I’ll probably be more lenient than reciprocal, because if I was reciprocal, that would be very tough for people.”
3. Wall St. Bitcoin ETFs Roar Back to Life
Another positive indication for Bitcoin’s future is the resurgence of Bitcoin ETF inflows beginning on March 14. Heavy investments from traditional Wall Street investors suggest renewed institutional confidence in the cryptocurrency market.
This influx of capital, particularly on significant dates like St. Patrick’s Day, reflects a cautious optimism from institutional investors and could support further growth in Bitcoin prices.
4. Social Sentiment Score Flips Positive
In recent days, social sentiment regarding Bitcoin shifted positively. According to blockchain intelligence company Santiment, comments on social media indicated that many expect the current rally to continue, marking a transition from fear, uncertainty, and doubt (FUD) to fear of missing out (FOMO).
“Comments across social media are becoming quite positive, indicating many expect this rally to continue,” noted Santiment.
5. White House Floats Gold Sale to Buy Bitcoin
In a surprising development, a White House crypto official suggested the possibility of selling gold from the U.S. government’s stockpile to purchase Bitcoin. This move emphasizes Bitcoin’s growing legitimacy as an asset class and signals a potential long-term commitment by the government to engage with the cryptocurrency market.
The changing dynamics within the crypto industry, particularly from institutional investors and government discussions, indicate that Bitcoin is far from a fleeting trend. With supportive developments in U.S. federal policies on the horizon, Bitcoin is likely to maintain price support this year, and its growth is poised to extend into the future.
The insights presented here highlight the potential for Bitcoin to establish itself even further, paving the way for robust price growth as the year progresses. The future of cryptocurrency remains dynamic, and Bitcoin’s prospects in 2025 appear increasingly favorable.
