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5 Signs Bitcoin Is Primed to Pump Again This Year (Opinion)

5 Signs Bitcoin Is Primed to Pump Again This Year (Opinion)
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In a blog post on Tuesday, the chief investment officer for the institutional grade Bitcoin ETF issuer wrote:

Two years ago, it was common for Bitwise clients to allocate ~1% of their portfolio to bitcoin and other crypto assets, an amount they could easily afford to lose.

But hes noticed a big change over the last 24 months:

In todays environment, its a different story. We more frequently see 3% allocations. As more of the world wakes up to the massive derisking weve seen in bitcoin, I think youll see this number rise to 5% and beyond.

ABCs Shark Tank investing star Kevin OLeary followed this exact trajectory to massive profits from his Bitcoin investments. Only he was years ahead of the curve.

OLeary devoted 3% of his portfolio to BTC in 2021. A year later he bumped up that balance to 5%.

Here are five signal factors driving support for Bitcoins price growth in 2025.

1. Bullish BTC Falling Flag Continuation Pattern

After correcting from the Jan. 20 historic record high of $109,000, Bitcoins price rallied for 14 days starting on Mar. 10, from $78,500 to $87,450 by Mar. 25 (+12% gain).

That represents a decisive breakout, confirming the falling flag pattern BTC charted during its correction. This bullish crypto chart pattern often signals the continuation of an uptrend.

According to Investopedia, these are some of the most reliable chart signals traders use in markets like crypto and stocks:

These patterns are among the most reliable continuation patterns that traders use because they generate a setup for entering an existing trend that is ready to continue.

The pattern is more reliable as a bull signal if the daily trading volume chart matches the price, tracing a descending rhombus shape that looks like a flag falling in the wind.

In this case, Bitcoins volume nicely matched the prices consolidation channel. So its a fairly classic example of this bullish sign.

Meanwhile, as Bitcoins price moved higher into a more sure-footed recovery, the 10-day through 200-day moving average BTC technical indicators all flipped to a Strong Buy recommendation.

2. Bitcoin Price Rally on Trump Tariff Pivot

In addition to the Bitcoins decisive breakout in March from a 50-day falling flag channel within a steep 16-month uptrend, theres President Donald Trumps pivot on tariffs in March.

Markets rallied as the Trump relaxed his stance on tariffing imports. Before that, crypto prices fell along with stocks in February over a news cycle heavily focused on tariffs and rumors of more taxes.

But, Bitcoin prices began to recover a few days after Trump suspended tariffs on Mexican and Canadian imports. It surged again on Mar. 24 and 25 after reports emerged that the White House was about to narrow its tariff agenda significantly.

Instead of broad industry tariffs on major trading partners, Trump would focus tariffs in a more targeted plan to be levied on countries with the most severe US trade imbalances.

BTC continued to notch gains on Mar. 26 as Trump confirmed the softer tariff stance in an interview:

Ill probably be more lenient than reciprocal, because if I was reciprocal, that would be very tough for people.

These confluences signal the crypto rout over February was more about global tariff worries than a reversal in Bitcoins earthshaking 28-month uptrend since Dec. 2022.

3. Wall St. Bitcoin ETFs Roar Back to Life

Another rather bullish signal for a Bitcoin trend continuation is the decisive return of inflows to Bitcoin ETFs over several consecutive days beginning on Mar. 14.

Flows were heavy on St. Patricks Day (Mar. 17), with a total quarter billion worth of Bitcoin ETF purchases by regulated Wall Street investors. The following day inflows topped another $200 billion.

Wall St. is more practical and cautious in its BTC trading than the high-conviction Internet cabal of technology futurists, devout political radicals, and laptop capitalists hooked on crypto market ROIs.

So, the institutional crowds return to bagging crypto ETFs with issuers like BlackRock, Fidelity, and VanEck potentially represents another bullish tailwind that will support more Bitcoin price growth in 2025s next quarter.

4. Social Sentiment Score Flips Positive

As these bullish indicators emerged for Bitcoins rally, social sentiment flipped from FUD (fear, uncertainty, and doubt) to FOMO (fear of missing out).

Blockchain intelligence company Santiment reported on Mar. 24 that positive Bitcoin sentiment had reached its most bullish levels seen in 6 weeks.

Comments across social media are becoming quite positive, indicating many expect this rally to continue, Santiment said in a post on the X app.

In addition to these other signals, they may be encouraged by the bevy of Bitcoin whales who bought 200,000 BTC over the period of one month in March.

5. White House Floats Gold Sale to Buy Bitcoin

Trump and the crypto segment got married last year during his historic presidential reelection bid. During a whirlwind of the first 65 days in office, it appears that the honeymoon is far from over.

The president and his appointees continue to give strong assurances of legal clarity and fairness to the crypto industry, while making serious moves toward taking a big bite out of the 21 million Bitcoin that will ever be mined and holding it in reserve for the United States government and citizens.

But, in a shocking development, a White House crypto official in late March suggested that the government may sell gold from its official stockpile to buy BTC with the proceeds.

Its another reminder that Bitcoin is far from a flash in the pan Internet fad, as many have taken pains to point out over the past years. The US governments embrace signals a sea change in the forward outlook for BTC and support for a stellar secular growth trend on the scale of years and decades.

Plus in the more immediate term, the cryptocurrency will likely continue to enjoy price support this year from further developments in the US federal policy agenda.

The post 5 Signs Bitcoin Is Primed to Pump Again This Year (Opinion) appeared first on CryptoPotato.

Read more: https://cryptopotato.com/5-signs-bitcoin-is-primed-to-pump-again-this-year-opinion/

Text source: CryptoPotato

Disclaimer: Financial information and news are not financial advice, read the disclaimer.
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