Bitcoin is approaching $100 thousand: why its price soared and what awaits the cryptocurrency in 2025
13 November 2024 20:30
ANALYSIS FROM 
Bitcoin, the world’s most popular cryptocurrency, continues to grow in value and approached the $90,000 mark after Donald Trump won the U.S. presidential election.
Traders are betting that bitcoin could reach $100,000 this year, Bloomberg reports. Journalists
Economic expert Danylo Monin spoke exclusively to KU about current trends in the cryptocurrency market and the prospects for bitcoin in the near future. According to Monin, despite the fact that the cryptocurrency market experienced a significant decline from 2021 to 2022, it is beginning to recover in 2023-2024. Earlier this year, there was a big jump in the value of bitcoin, which rose from $45,000 to $73,000 by March.
“This surge was caused by the entry of large investment funds, such as BlackRock, through which investors were able to buy bitcoin,” Monin explained.
Why bitcoin is growing so rapidly
According to the expert, today’s rapid growth of bitcoin is due to two main factors. First, it is the decision of the US Federal Reserve to cut interest rates. The rate has already decreased by 0.75% twice. This is positively perceived by the crypto market, as it makes it possible to take out loans to buy crypto assets cheaper. Secondly, the market was also affected by the political environment in the United States, in particular, the presidential election.
“The victory of Trump and the Republicans stimulates demand for cryptocurrencies. The Republicans are demonstrating a more loyal stance towards the crypto market, unlike the Democrats, who were much less supportive,” the expert said.
Monin also emphasizes that Donald Trump himself has publicly expressed his willingness to buy bitcoin for the US reserves, which also stimulates the growth of demand for this cryptocurrency. Therefore, it is logical that the demand for bitcoin has increased amid Trump’s victory, and the price has risen from $70,000 to $90,000 within a few days.
Why you shouldn’t buy bitcoin now, despite its rapid rise in price
Monin is making an investment recommendation. At the moment, he does not recommend buying bitcoin because its price has already reached a high level. The expert also does not rule out a possible further increase to $100 thousand, so the profitability at the current level calls such investments into question. The expert also points out the risks that may arise from possible market downturns, as was the case in 2022, when the price of bitcoin dropped from 69 to 16 thousand dollars. Instead, Monin recommends investing in other cryptocurrencies that have fallen significantly in price in recent months and have greater potential for growth.
The economist believes that the market is likely to grow by the end of the year, but in 2025, the market will be affected by external factors, such as political changes in the United States.
Main risks in the crypto business
According to Monin, by the end of 2024, bitcoin may reach $100 thousand, but the growth in value will be limited due to high resistance at the levels of 90 and 100 thousand. At the same time, the expert says that if the market situation changes, the price can easily exceed this level.
“The price of bitcoin can overcome the $100,000 mark quite easily if there are no negative external factors in the market. However, if circumstances remain stable, I still question whether bitcoin will reach this mark by the end of the year. It all depends on how the situation develops,” Monin said.
According to him, there are two main risks that investors may face. The first one is buying at a high price and subsequent large losses. This is especially true for beginners, who often do not take into account that the right time to buy is when the market is falling, not when it is reaching records. Monin also noted that investors who buy cryptocurrencies during their growth can fall into the trap of falling prices.
“If you didn’t sell bitcoin in time, you will have to sit in losses for a very long time after it falls,” he warned.
Monin emphasizes that the value of cryptocurrencies can change 4 times, and in some cases even 20 times in a year. For newcomers to this field, leveraged trading is particularly dangerous, and Monin recommends avoiding it.
Is it legal to own bitcoin in Ukraine and do I have to pay taxes?
Petro Bilyk, Head of Technology and Investment Practice at Juscutum Law Firm, specially for
“Ukraine is already preparing special legislation to regulate business and transactions with virtual assets, which should ensure legal certainty and transparency of such transactions,” adds Bilyk.
It is worth noting that the purchase and ownership of bitcoin does not require mandatory declaration. However, if assets are sold and a person receives income (for example, in hryvnia), this income must be declared.
According to the lawyer, income from the sale of bitcoins for individuals is currently subject to the standard tax rate of 18% plus military duty. However, Ukraine is actively discussing changes to the tax code that may affect the taxation of cryptocurrency transactions.
“There is a possibility of introducing preferential rates for those who have been holding assets for a certain period of time. It is also expected to clearly regulate relations with the banking system and other government agencies,” he said.
At the same time, the lawyer emphasizes that bitcoin taxes will be levied only on investment income, i.e. the difference between buying and selling.
Security and protection of cryptocurrency assets
The peculiarity of bitcoin is that a person is responsible for its safety. If you store cryptocurrency on a cold wallet, neither banks nor exchanges have access to the asset. On the one hand, this has certain advantages, as no matter what happens to the exchange or bank, you remain the owner of your bitcoins. On the other hand, this increases the owner’s responsibility, as in case of loss of private keys or access to the wallet, assets can be lost without the possibility of recovery.
“If you give access to your wallet or private key to attackers, they may try to steal your bitcoins. That ‘s why it’s important to take security measures seriously,” Bilyk warns.
However, despite all the security measures, there is a possibility that assets can be stolen as a result of a phishing attack or other types of fraud. Is it possible to recover assets after fraud? Yes, it is. In this case, Petro Bilyk advises contacting the cyber police of Ukraine, as there are practical cases when, thanks to the joint work of lawyers and law enforcement agencies, it was possible to recover stolen assets even after six months or a year through monitoring transactions on the blockchain.
“Since all transactions are recorded on the blockchain, it is possible to track where the funds were redirected. In the case of withdrawal through centralized exchanges, there is a chance to block these assets and return them to the owner,” Bilyk adds.
So, despite the rapid growth of bitcoin’s value, experts advise not to rush to buy at the peak. Investors should understand that cryptocurrency is a high-risk asset, and they need to carefully assess the prospects and be able to exit the market in time. Another important aspect is the security of bitcoin storage. Cryptocurrency owners should understand that they are solely responsible for the safety of their assets. Losing access to private keys can lead to the loss of cryptocurrency. However, even in the case of theft or phishing attacks, there is a chance to recover assets with the help of cyber police, thanks to the tracking of transactions through the blockchain.
Author – Daryna Glushchenko
