Bitcoin soars as ETFs and halving spark a crypto frenzy
Bitcoin soared to dizzying heights last year, propelled by a swarm of spot Bitcoin exchange-traded funds (ETFs) introduced in January and April’s dramatic supply-halving event.
These triggers, combined with a surge of interest from institutional investors, catapulted Bitcoin into the limelight, transforming it into a mainstream asset category. The crypto kingpin shattered records, peaking at an astounding US$100,000 in early December, buoyed by Donald Trump’s triumphant return to the White House on November 5.
With Trump’s re-election and a firm Republican grip on both the Senate and the House of Representatives, his ambitious plans to declare the US the “crypto capital of the planet” and stockpile a strategic Bitcoin reserve are expected to move full steam ahead. Gulf Binance Chief Executive Nirun Fuwattananukul shared insights on these transformative prospects.
“This means he can drive his campaign policy very effectively. His campaign advisors, especially Elon Musk and Robert F. Kennedy Jr, are also very pro-Bitcoin, so I think these pledged policies will be implemented.”
Fuelled by these developments, Bitcoin ETFs attracted net inflows surpassing US$36 billion in 2024, according to data from Farside Investors. Looking to the future, crypto asset manager Bitwise projects that 2025 will mirror or even exceed this surge.
Although Bitcoin has set unprecedented records, a brief market pullback at crucial resistance levels has left traders pondering whether to jump in now or wait for the market to stabilise, as Gulf Binance points out. Currently, Bitcoin is hovering around US$98,000, while the broader cryptocurrency market cap is valued at a staggering US$3.26 trillion.
Bitcoin buzz
On a more local note, former Thai premier Thaksin Shinawatra has thrown his weight behind the Bitcoin buzz, proposing a Bitcoin sandbox initiative for Phuket tourists, encouraging the use of cryptocurrency for payments. In a candid note to friends, Thaksin, as relayed by Chinese cryptocurrency pundit Colin Wu, predicted Bitcoin could skyrocket to US$850,000 before long, reported Bangkok Post.
Forecasts from Bitwise suggest Bitcoin might surpass US$200,000 for the first time in 2025, with potential to hit US$500,000 if the US embraces Republican Senator Cynthia Lummis’s proposal to amass 1 million Bitcoin for a strategic reserve.
Fuwattananukul offered a hopeful outlook.
“We will likely see the US building and growing the industry again after many companies moved offshore the last few years.”
He highlighted that increased capital investment and favourable regulatory conditions could dramatically fuel the cryptocurrency sector’s expansion in the near term. Furthermore, should the US adopt a supportive stance on crypto, it’s likely that other leading nations will swiftly follow suit, striving to keep their competitive edge.
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