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

The world’s biggest cryptocurrency Bitcoin, saw its record-breaking run slow a bit at 2024-end and into the New Year 2025 — leading to the token’s first monthly drop since August 2024, according to a Bloomberg report.

Bitcoin slipped 3.2 per cent in December as investors began cashing profits following the sustained rally in the lead-up and eventual election of Donald Trump as United States President. He is set to take back the presidency on January 20, to much anticipation from the crypto sector.

Bitcoin Outperformed Gold, Equities

The Trump-backed crypto fever pushed Bitcoin to an all-time high of $108,315 mid-December before US Federal Reserve decisions cooled the high. Still the cryptocurrency has notched a 120 per cent gain through 2024, outperforming gold and the global equities, as per the report. Bitcoin has also more than doubled in 2023 in a “comeback” it added. Interestingly, cocoa was among the few assets that beat even the crypto comeback.

And while investors and market watchers largely dipped into the Bitcoin pie, other crypto tokens also saw an influx. Meme-favourite Dogecoin rose 253 per cent — for example a $10,000 investment in the token would have bagged one $35,345 in return.

What Experts Hope For, Expect in 2025

• QCP Capital said in a note to clients: “While optimism surrounds crypto-friendly regulations post-Trump inauguration, we think the key catalyst may come in January as institutions readjust asset allocations. With Bitcoin now broadly adopted by a broad spectrum of institutions — adding university endowment funds to the list this year — allocations are likely to increase, strengthening Bitcoin dominance, stabilizing spot movements, and shifting volatility dynamics closer to equities.”
• Vishal Sacheendran, Head of Regional Markets, Binance told Livemint the Bitcoin growth is “impressive” adding that 2024 has been “transformative for the industry as a whole”. Looking ahead for 2025, Sacheendran noted that the focus will be on “increasing knowledge and trust within the crypto community, fostering stronger collaborations with authorities, and enhancing blockchain utility to address real-world challenges. The future of crypto is about more than just trading; it’s about building a decentralized, inclusive, and innovative digital ecosystem.”

He was also hopeful for India’s role in the sector: “We are hopeful that in 2025, India will take the lead in forming progressive and comprehensive crypto regulations.”

• Sumit Gupta, Co-founder, CoinDCX told Livemint that the crypto sector is entering a crucial stage, “driven by enhanced regulatory clarity, increased institutional involvement, and advancements in technology”. He added, “as we approach 2025, the maturity of the market is becoming apparent. According to data from CoinDCX, 51.5 per cent of investor portfolios in 2024 consisted of a combination of Bitcoin and various altcoins, indicating a transition from speculative trading to more strategic investment approaches. It is expected that Bitcoin’s share in these portfolios will rise by an additional 10-15 per cent, as investors increasingly focus on long-term value”.

Gupta was optimistic institutional investment driven by crypto and Web3 companies’ IPOs, adding that the amount could surpass $500 billion. He also noted the impact of geopolitical factors and technology on the industry. “Despite ongoing challenges, 2025 is poised to be a pivotal year for the industry’s integration into mainstream finance,” he felt.

Milestones Ahead?

• Zebpay CEO Rahul Pagidipati told Livemint he expects 2025 to be even better than 2024 which was “a year of tremendous growth and crucial milestones” for cryptos. “The surge in tokenisation, blockchain applications, and advancements in cross-border payment systems promise to set the stage for transformative growth in 2025,” he added.
• Avinash Shekhar, Co-Founder & CEO, Pi42 told Livemint that the crypto market is “ready for a transformation in 2025 as it heads into unprecedented achievements under the leadership of Bitcoin”, adding that while the sector navigates a ‘supercycle’, “caution, patience, and careful positioning will pay in what will become a year to remember”.
• Himanshu Maradiya, Chairman and Founder, CIFDAQ told Livemint that 2025 will be the year crypto “steps out of the shadows, driven by institutional adoption, regulatory clarity, and breakthrough advancements in scalability” adding that he believes crypto is poised to go mainstream as a transformative asset class.
• Pankaj Balani, Co-founder and CEO, Delta Exchange told Livemint that this year may prove to be a milestone one. “We see significant inflows continuing in crypto ETFs next year. With new SEC chair and favourable administration towards crypto, new ETFs for other digital assets like Solana and Ripple are expected to be launched. Further, any successful legislation supporting BTC strategic reserve would further fuel the sovereign race to acquire Bitcoin,” he added.

New All-time Highs?

• Edul Patel, CEO and Co-founder Mudrex told Livemint that the outlook for 2025 is “even more promising” than 2024 due to the pro-crypto leadership at the SEC, CFTC, and the US White House working towards crypto-friendly regulations. “With better regulatory clarity from the US, the institutional interest in crypto is set to get stronger bringing in higher inflows into the ETFs. On the other hand, countries like China, Canada, EU nations, and the Middle East are easing restrictions, creating a healthy environment for wider crypto adoption. These developments create a strong pipeline for the crypto industry making 2025 a critical year in taking crypto investing mainstream. As adoption increases and the market matures, Bitcoin could potentially reach $150,000 by the end of the year creating new milestones for the industry,” he added.
• Dr Sujata Seshadrinathan, Director of IT and Process, Basiz Fund Services told Livemint she sees expectations from analysts for Bitcoin reaching life-time highs of $190,000-200,000 in 2025.

For the Indian markets, she felt we will see some large crypto trading platforms re-entering with due compliance to relevant government regulations. “Overall, 2025 could see regulatory clarity and protocols being established for the use of cryptocurrencies. This will mean moderation and controlled fluctuations in prices, with investor protection and institutional adoption moving well ahead on an upward trajectory,” Dr Seshadrinathan said.