Bullish Growth of Bitcoin in 2024-2025: When Cryptocurrency Becomes a Strategic Asset

Since the inception of Bitcoin in 2009, its history has been inextricably linked to cycles of rapid growth and decline. The upcoming bull run of 2024-2025 demonstrates a fundamentally new dynamic: whereas previous crypto bull markets were characterized by retail speculation, the current market is led by institutional investors and government entities. Understanding these transformations helps investors and analysts grasp the long-term trends in digital asset development.

From speculation to strategy: The essence of cryptocurrency cycles

Bitcoin’s bull cycle is not just a period of price appreciation but the result of interactions among several factors. Historically, the main catalysts have been halving events (reducing mining rewards), macroeconomic shocks, regulatory changes, and in recent years, the influx of institutional capital.

The first major rally in 2013 saw Bitcoin rise from $145 to $1,200 (+730%), driven by early adoption of the technology and media coverage. This event showed that cryptocurrency could attract attention far beyond the technical community. However, enthusiasm was quickly replaced by disappointment: the Mt. Gox collapse in 2014 drove the price below $300, exposing the vulnerability of an underdeveloped market infrastructure.

2017 brought a new wave of interest associated with the ICO (Initial Coin Offering) boom. Bitcoin soared from $1,000 in January to $20,000 in December (+1,900%), becoming a pop culture phenomenon. Retail investors flooded the market, with trading volumes increasing from $200 million to $15 billion daily. However, the speculative bubble burst: by December 2018, the price had fallen to $3,200 (-84%). Regulatory crackdowns, especially in China where ICOs and domestic exchanges were banned, accelerated the market correction.

The bull period of 2020-2021 was markedly different from previous waves. Bitcoin rose from $8,000 in January 2020 to $64,000 in April 2021 (+700%), but the driving force was no longer retail speculation but institutional adoption. MicroStrategy, Tesla, Square, and other public companies began holding Bitcoin as a strategic asset. Low interest rates and massive monetary stimulus during the pandemic created a favorable environment for revaluing digital assets as an inflation hedge.

Transformation in 2024-2025: ETFs as a turning point

The current crypto bull run has introduced a qualitatively new dimension. The approval by the U.S. Securities and Exchange Commission of spot Bitcoin ETFs in January 2024 opened the doors for millions of investors for whom direct crypto custody seemed an unattainable dream. As of November 2024, ETFs have attracted over $28 billion, surpassing even gold funds in popularity.

BlackRock, managing over 467,000 BTC through its IBIT ETF, has become one of the largest holders of cryptocurrency. The total amount of Bitcoin held across all spot ETFs has exceeded 1 million coins — an unprecedented figure. These numbers reflect not just price growth but a fundamental shift in the perception of Bitcoin as a legitimate financial instrument.

Against the backdrop of institutional capital inflows, Bitcoin reached $93,000 by November 2024 (+132% year-to-date). Analysts predicted a potential breakthrough beyond the psychological $100,000 mark. The fourth halving in April 2024, following historical patterns, reduced new Bitcoin issuance, increasing scarcity.

However, the current picture requires honest analysis. As of February 2026, Bitcoin’s price stands at $67.74K, down 29.90% over the past year. The all-time high (ATH) reached $126.08K, 86% above the current level. This context shows that even during periods perceived as “bullish,” the market undergoes significant corrections. Volatility remains a fundamental characteristic of crypto assets, regardless of institutionalization levels.

Technical signals and markers of growing interest

Recognizing the start of a genuine bull cycle requires analyzing a set of indicators. The Relative Strength Index (RSI) above 70 signals strong buying momentum, and crossing of the 50- and 200-day moving averages often precedes an upward trend. During the 2024-25 rally, these signals have been highly accurate.

On-chain metrics add additional context. Increasing wallet activity, inflows of stablecoins to exchanges, and decreasing Bitcoin reserves on trading platforms indicate accumulation by investors. In 2024, Bitcoin ETF inflows exceeded $4.5 billion just in November, demonstrating waves of reevaluation of digital assets’ value by investors.

MicroStrategy, one of the largest corporate treasuries, continued adding thousands of BTC in 2024, reducing circulating supply on exchanges. Bhutan’s Druk Holding & Investments accumulated over 13,000 BTC, positioning the nation among the largest government holders of cryptocurrency worldwide. El Salvador, which adopted Bitcoin as legal tender in 2021, owns approximately 5,875 BTC.

Government recognition and strategic rethinking

One of the most significant developments in recent years is the potential transformation of Bitcoin into a national strategic reserve. Senator Cynthia Lummis introduced the BITCOIN Act of 2024, proposing that the U.S. Treasury acquire up to 1 million BTC over five years. If implemented, this policy could redefine Bitcoin’s role in the global financial system, solidifying its status as “digital gold” alongside physical gold reserves.

Re-election of the administration in November 2024, which expressed pro-cryptocurrency views, added optimism among Bitcoin supporters. Political signals of potential support for the crypto sector stimulated additional demand and reinforced positive market sentiment.

Technological potential: OP_CAT and Bitcoin scalability

Bitcoin’s long-term appeal depends not only on macroeconomic factors and regulation but also on technological development. Restoring the OP_CAT opcode, initially removed for security reasons, could pave the way for rollups and Layer-2 solutions, enabling Bitcoin to process thousands of transactions per second.

This potential upgrade could expand Bitcoin’s functionality beyond a store of value, allowing the deployment of DeFi applications on its network. Support for OP_CAT from key developers underscores the community’s commitment to solving long-term scalability issues, especially with upcoming halvings that will reduce block rewards.

Challenges and risk factors on the path of bull cycles

Despite Bitcoin’s historical resilience and revaluation capacity, investors must consider significant risks. High volatility can lead to sharp corrections, especially when retail traders start taking profits. The FOMO (Fear Of Missing Out) phenomenon creates speculative bubbles that inevitably burst, causing losses for late participants.

Macroeconomic shocks, such as interest rate hikes or recessions, can divert capital from risky assets to traditional safe havens. Developing countries, despite increasing interest in Bitcoin as a hedge against local currency devaluation, often impose restrictions on cryptocurrency use.

Environmental critics frequently point to Bitcoin mining’s carbon footprint, especially if based on fossil fuels. ESG-focused investors may limit exposure. Growing competition from alternative blockchains and cryptocurrencies could dilute Bitcoin’s appeal, although its status as “digital gold” remains unshaken.

Regulatory uncertainty persists despite progress in the U.S. and elsewhere. Different jurisdictions may introduce conflicting rules, limiting cross-border trading and liquidity. Hacks and vulnerabilities of crypto exchanges still pose risks to asset custody, requiring investors to exercise maximum caution and use hardware wallets.

Preparing for the next waves: Practical steps for investors

To navigate the volatility of the crypto market and upcoming bull cycles effectively, investors are advised to develop a comprehensive strategy. The first step is to thoroughly study Bitcoin’s technology, economic model, and historical cycles. Recognizing patterns observed in 2013, 2017, and 2020-2021 provides valuable clues about potential price movements.

A clear investment plan defining acceptable risk, time horizon, and target returns is critical. Investors should avoid impulsive decisions driven by short-term volatility. Diversifying the portfolio beyond Bitcoin—adding other crypto assets and traditional assets—helps mitigate potential losses during corrections.

Choosing a reliable crypto exchange with strong security protocols, two-factor authentication (2FA), and cold storage is essential. For long-term holding, hardware wallets offline are recommended.

Constantly monitoring reputable news sources, tracking regulatory changes, and understanding macroeconomic trends enable investors to stay ahead of the curve. Tax implications of crypto transactions require careful documentation and consultation with professionals, as requirements vary by jurisdiction.

Participating in educated crypto communities, attending webinars and conferences, enhances investment skills and understanding of market nuances. Using risk management tools such as stop-loss orders and position diversification is crucial for protecting capital amid high volatility.

What lies ahead: Cyclicality as a law of completeness

Bitcoin’s history shows that each bull run leaves its mark on the market and investor perception. From early adoption in 2013, through retail euphoria in 2017, to institutional recognition in 2020-2021, and the ETF revolution of 2024-2025 — each cycle redefined Bitcoin’s role in the financial ecosystem.

The current period is marked by unprecedented integration of Bitcoin into traditional finance. ETFs have become a bridge, allowing institutional capital to enter the market without dealing with cold wallets and technical infrastructure. Government recognition of Bitcoin’s potential as a strategic asset opens new horizons, though it also introduces new uncertainties.

Key markers to watch include upcoming halving cycles (next in 2028), spot ETF inflows, regulatory developments in major economies, and technological upgrades like OP_CAT. While predicting the exact timing of the next price surge is impossible, history suggests that Bitcoin’s cyclical nature offers regular opportunities for revaluation and accumulation.

For both long-term holders and active traders, future crypto market cycles present opportunities and challenges. The key to success is staying informed, disciplined, and ready to adapt to changing market dynamics. The 2024-2025 bull run has already rewritten part of Bitcoin’s history; the next cycle promises to be no less transformative.