Following the tumultuous crypto crash at the end of 2024, the start of 2025 has ushered in a wave of positivity and hope among investors. Bitcoin [BTC], taking the lead in the recovery, has once again become the center of attention. Additionally, alternative cryptocurrencies have closely followed suit, reigniting optimism throughout the market.
In the midst of this optimistic atmosphere, Pierre Rochard, Vice President of Research at Riot Platforms, highlighted the robustness of BTC as a financial system. In a recent publication on X, he declared,
“Bitcoin is designed to be the most dependable monetary system globally for both savings and transactions.”
Bitcoin’s Recent Achievement
Rochard’s latest statement came shortly after revealing that the Bitcoin network handled over $19 trillion in transactions in 2024. This milestone unequivocally demonstrates Bitcoin’s dual role as a store of value and a medium of exchange.
This achievement marks a significant increase, more than doubling the $8.7 trillion processed in 2023. The surge is particularly remarkable given the decrease in transaction volumes over the previous two years following the 2021 market boom.
2024: A Remarkable Year for Bitcoin
Bitcoin’s exceptional performance in 2024 was not an isolated event—it was underpinned by notable macroeconomic and institutional advancements. The approval of Bitcoin exchange-traded funds (ETFs) in the United States was a pivotal moment, attracting institutional investments and broadening Bitcoin’s appeal to mainstream investors.
The momentum was further boosted by Bitcoin’s halving event in April, where mining rewards were halved, heightening its appeal based on scarcity. Additionally, the political climate added to the excitement. The U.S. presidential election and speculations regarding the country adopting a strategic Bitcoin reserve, referred to as the “Trump pump,” fueled a bullish frenzy.
This excitement had global repercussions as other countries began exploring similar strategies, solidifying Bitcoin’s position in geopolitical and economic discussions. These factors collectively propelled Bitcoin to a historic peak of $108,000.
Nonetheless, the exuberance in the market faced a harsh reality as BTC dropped to close the year around $91,000, serving as a stark reminder of its intrinsic volatility.
Is Bitcoin’s Recovery Sustainable?
However, there are signs of a positive change as the price has started to rebound at the beginning of 2025. According to CryptoCrypto’s latest analysis, there has been a notable shift in market sentiment, with Bitcoin exiting the “extreme greed” phase for the first time since the post-election surge in November.
This newfound equilibrium could set the stage for steady growth.
At the time of writing, Bitcoin was being traded at $97,771, showing a 3% weekly increase, albeit with a slight 0.23% decrease in daily fluctuations.