Bitcoin (BTC) suffered a brutal crash on Monday, pushing it below $90,000. This crash liquidated nearly $820 million worth of positions in 24 hours. Despite this, the price is up 7% from the January 13 bottom of $88,909 and is likely to continue its ascent without any major dips. With such a strong comeback, analyst explains eight reasons why crypto markets are bullish and will continue to be.
The AppStore rank for Coinbase has not hit number one yet.
Institutional demand for Bitcoin is the highest it has ever been.
The altcoin market capitalization, excluding Bitcoin and Ethereum, hovers around 2021 highs.
The total crypto market capitalization also hovers around the 2021 high.
Announcement of President-elect Donald Trump’s cabinet.
The creation of strategic Bitcoin reserve.
Election of pro-crypto SEC and CFTC Chairman that fosters crypto growth.
Ethereum is still under $4,000 and has not hit a new ATH.
8 Reasons to be Bullish on Bitcoin Price Today
Bitcoin (BTC) price today is up No data found for bitcoin on 7 minutes ago% after crashing down to $88,909 on January 13. Despite such a brutal crash, BTC trades today at No data found for bitcoin on 7 minutes ago.
*bitcoin price updated as of No data found for bitcoin on 7 minutes ago.
As noted by the analyst, let’s explore eight reasons why the recent Bitcoin price crash was the biggest dip buying opportunity and why BTC & crypto markets will continue rallying to new highs in the first quarter of 2025.
8 REASONS WHY CRYPTO TOP IS NOT IN YET!
1 COINBASE APPSTORE RANK NEVER CROSSED 200
2 UNPRECEDENTED INSTITUTIONAL DEMAND
3 TOTAL3 IS NOT CLOSE TO PREVIOUS HIGHS
4 TOTAL CRYPTO MARKET CAP AROUND 2021 HIGHS
5 TRUMP TO ANNOUNCE CRYPTO CABINET
6 TRUMP YET TO ANNOUNCE BITCOIN RESERVE…
— MAXPAIN (@Mangyek0) January 13, 2025
Reason 1: Coinbase AppStore Rank
The previous bull runs ended when Coinbase ranked first on Apple’s Appstore. When Coinbase gains massive popularity, crypto markets transition into bear markets, leading to massive corrections. In hindsight, widespread euphoria and spikes in social volumes have always been cycle-top indicators.
Reason 2: Institutional demand for Bitcoin is the highest it has ever been
A recent report suggests institutional demand stands at 5,774 BTC, higher than the supply of 5,460 BTC. This is unprecedented in Bitcoin’s history and shows why investors should be bullish on the cryptocurrency sector.
Moreover, the recent crashes in December 2024, and January 2025 have caused retail investors to capitulate, aka sell their holdings at a loss.
Still letting them FUD your bags? https://t.co/LdpiPu2IGU pic.twitter.com/dbzaD1xjJT
— MAXPAIN (@Mangyek0) January 13, 2025
Reason 3: Total Crypto Market Capitalization Has Room To Grow
The total crypto market capitalization hit a new ATH of $3.73 trillion, nearly 24% higher than the 2021 peak of $3.01 trillion. This outlook shows there is more to grow, especially considering that the US has approved spot Bitcoin & Ethereum ETFs with the hope for more spot ETF approvals.
TOTAL (Crypto Market Capitalization)
Reason 4: Altcoin Market Capitalization Has Not Hit ATH
During every bull cycle, the altcoin market capitalization, excluding Bitcoin and Ethereum, has shot past the previous highs. As of January 14, this metric is just under $1 trillion, while the 2021 cycle peaked at $1.13 trillion. This outlook suggests more room for altcoin market capitalization to grow.
TOTAL3 (Crypto Market Capitalization Excluding BTC, ETH)
Reason 5: Announcement of President-elect Donald Trump’s cabinet
Donald Trump was pro-crypto long before his presidential campaign began, and his cabinet picks are reaffirming his crypto-friendly stance. The appointment of David Sacks as the “White House Artificial Intelligence and Crypto Czar” and the development of a much-needed legal framework for the crypto industry all suggest that crypto is likely to flourish more under Trump’s reign.
Reason 6: Pro-crypto SEC and CFTC Chairs
With Trump’s optimism and support for crypto, investors are already speculating who the next SEC and CFTC chairs will be. While there are many names being nominated, one common theme among the nominees is that most of them are pro-crypto.
In the words of Ripple CEO Brad Garlinghouse,
“Today, here in the US, we welcomed the 119th Congress—better known as the most pro-crypto Congress in history. The journey is just beginning, but you can’t deny the energy & excitement already building across the industry. Let’s get to work.”
Reason 7: Creation of Strategic Bitcoin Reserve
While many institutions are actively buying BTC, Donald Trump’s development of a strategic Bitcoin Reserve would be a cause for celebration. This development would be the best catalyst to propel Bitcoin price to new highs, potentially $200,000. Other countries would follow the US’ lead, causing ripple effects and widespread adoption of BTC.
Reason 8: Ethereum Has Not Hit ATH Yet
While reason eight might seem like it doesn’t fit here, investors need to understand that Ethereum has the most diverse ecosystem, with roughly $65 billion in value locked in its ecosystem. Despite this bullish fundamental outlook, Ethereum struggled to overcome $4,000 and is not close to hitting its ATH at $$4,878.26.
Despite the recent price crash, the outlook for Bitcoin and the broader crypto market remains overwhelmingly bullish. With institutional demand at an all-time high, a growing total crypto market capitalization, and a pro-crypto regulatory environment on the horizon, Bitcoin price prediction suggests that the stage is set for a significant rally in the first quarter of 2025 and potentially a new ATH. As Ethereum continues to lag behind its ATH, the potential for a catch-up rally is palpable. With these eight bullish factors in play, investors would do well to view recent dips as buying opportunities.
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