Happy New Year and 2025 Reader,

I wanted to take the opportunity to say thank you for being a valued BlockByte client. We feel incredibly grateful to do work we love and share our learnings along the way with people like you.

2024 has been a year of growth at BlockByte and across the markets.

We thought it might be worthwile looking back at what we think are the top three 2024 highlights and make three predictions for 2025:

Top 3 2024 Highlights

1. Bitcoin Breaks Through $100k, Proving The Doubters Wrong, Again
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​Bitcoin delivered 122% returns in 2024. It's hard to imagine that on January 1st 2024 we were sitting at US $42,395, surging up to as high as US $108,239 in December.

2. The President Endorses Crypto & Bitcoin
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​Unimaginable presidential endorsement. In what could only be described as a pipedream a year ago, the election of Donald Trump will go down in history as a pivotal turning point whereby a president elect went on stage announcing his plan to make America the 'crypto capital of the planet and the bitcoin superpower of the world'.
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3. The Most Successful ETF Launch In History

In 1 year, the world's largest asset manager, Blackrock, saw its bitcoin ETF overtake its 20-year old gold ETF in assets under management (AUM). Collectively, 11 of the US bitcoin ETFs now hold US $109B in AUM. If this is just the first year, it's exciting to imagine where this might take us over the next 5 years.

3 Predictions For 2025

1. US Bitcoin Strategic Reserve

The US will hold its existing 200,000+ bitcoin but will not announce a large scale purchase of 1,000,000 BTC strategic reserve proposed by Senator Cynthia Lummis. Whilst bitcoiners would love something like this, I still sense that many skeptics or members of the general public experiencing spending cuts or job losses as part of the new Department of Government Efficiency (DOGE) would be reticent to hear that the White House was happy to spend $100B as a bare minimum to acquire this much bitcoin. However, one can hope.
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2. Stablecoin market cap will double
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​Currently sitting at around US $200B, the stablecoin market which provides fast, cheap and global payments, providing people around the world access to the US dollar, will increase exponentially. We can only see this trend increasing as countries look to exit weaker currencies. This will inadvertently prop up the dollar and the US markets, further bolstering the US's dominant global financial position.
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3. Second Crypto & Bitcoin Rally To Come
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A second significant rally for the crypto market will occur in 2025. Why? The spiraling US fiscal deficit is now $36T. By 2034, the gross federal debt of the United States is projected to be about $54.39 trillion according to Statista. The end result is going to be increased debt monetisation. This is where the government creates more dollars to and new debt to pay for the old debt reaching maturity. This will continue to drive bitcoin and other digital assets higher. The below video by this by Ray Dalio is a good explainer on this topic:
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Thanks for reading and wishing you a happy and prosperous 2025.

James

James Brannan
Chief Executive Officer
BlockByte Capital
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(+61) 412 393 634
​james@blockbyte.com.au​
​https://blockbyte.com.au/​

BlockByte does not provide financial advice. We provide execution support, research and insured custody for investing in digital assets. Reach out to our team to discuss how we can help.

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