Bitcoin's low volatility signals potential upside in 2025

Despite experiencing notable fluctuations in December, Bitcoin's (CRYPTO:BTC) volatility remains relatively low compared to historical standards, suggesting potential for further price increases in 2025.

ARK Invest's “The Bitcoin Monthly” report for December analysed Bitcoin's realised volatility and concluded that while there was a spike at the end of the fourth quarter, it was not significant when viewed in historical context.

The report indicated that Bitcoin's monthly volatility was lower than its yearly volatility, implying that the cryptocurrency has not yet entered a mania phase.

“Indeed, these data points suggest room for further market expansion during 2025,” ARK stated.

Several bullish indicators were highlighted in the report, including mining difficulty and holder behavior.

Notably, 62% of Bitcoin’s supply has remained unmoved for over a year, even as the asset gained more than 100% in value throughout 2024.

The anticipation surrounding Bitcoin is heightened by the upcoming inauguration of President-elect Donald Trump, who has expressed intentions to create a pro-crypto environment in the U.S.

During his campaign, Trump pledged to position America as the global hub for Bitcoin and cryptocurrency.

Following his election victory, Bitcoin surged past $100,000, reaching an all-time high of $108,315 in December.

As Trump prepares to take office on January 20, he has appointed pro-crypto figures to key positions within his administration, which has been well-received by the crypto community.

Pantera Capital forecasts that Trump's presidency will further legitimise Bitcoin and drive prices to new heights in the near future.

In addition, reports suggest that Trump may sign crypto-specific executive orders on his first day in office to clarify regulatory priorities for the industry.

At the time of reporting, the Bitcoin (BTC) price was $96,966.81.