Bitcoin (BTC) Price Recovers From Year-End Slump as Investors Await US Regulatory Clues

Bitcoin rose for the seventh consecutive session on Monday, recovering from a year-end slump, while investors cautiously await clues on the U.S. regulatory outlook

Bitcoin price rose on Monday, extending gains for the seventh straight session and recovering from a year-end slump, as investors awaited clues on the U.S. regulatory outlook before President-elect Donald Trump takes office this month.

Bitcoin was up 1.1% to $99,513.7 by 01:35 ET (06:35 GMT).

Prices of the world’s largest cryptocurrency rose 6% last week and reached an all-time high of $108,244.9 on Dec. 2024, supported by increased institutional adoption and expectations of a strategic reserve under the Trump administration.

But a broader sell-off in risk assets amid the U.S. Federal Reserve’s hawkish rate outlook and concerns over liquidity in the digital asset market saw prices drop sharply in the last two weeks of 2024.

Bitcoin price sees massive variance in first-quarter 2025 projections

Analysts remained optimistic about Bitcoin’s future performance. H.C. Wainwright projected that BTC price could reach $225,000 by the end of 2025, driven by historical price cycles, regulatory expectations, and increasing institutional adoption.

However, some anticipated either a rise above $125,000 or a decrease towards $77,000 in the first quarter of 2025, influenced by the actions of President-elect Donald Trump.

Elon Musk's 'X Money' plans sparked crypto integration speculations

Elon Musk's plans for X, formerly known as Twitter, will see the integration of digital payments into the platform. Set to launch in 2025, X Money will be introduced among a slew of other features, as announced by X CEO Linda Yaccarino last week, who urged people to "buckle up" for what's to come.

This confirmation sparked intense speculation that the platform might integrate or support Bitcoin, other cryptocurrencies, or dollar-pegged stablecoins. These stablecoins use crypto technology to make transactions faster and more cost-effective.

Interestingly, Musk's space exploration company SpaceX was recently linked to Tether's leading USDT stablecoin, adding another layer of intrigue to the potential role of crypto in X Money's ecosystem.

Such an integration would align with Musk's long-standing advocacy for digital currencies and could significantly enhance Bitcoin's utility and adoption.

Crypto price today: Most altcoins edged higher but remained pressured

In the broader cryptocurrency market, Bitcoin's performance continued to influence other digital assets.

World no.2 crypto Ethereum rose 0.8% to $3,669.04.

Prices of the world no.3 crypto XRP edged up 0.3% to $2.4130.

Solana fell 0.9%, while Polygon gained 0.4%. Cardano inched 0.3% lower. Among meme tokens, Dogecoin lost 1%.