Bitcoin Bull Market 2025: 3 Reasons Why It Won’t Be Like 2017 And 2021

Jake Simmons

1 year ago

3 mins read

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In a recent tweet, Luke Mikic, a renowned podcaster and YouTuber, highlighted the distinct differences between the upcoming 2025 Bitcoin bull market and its predecessors in 2017 and 2021. Drawing from his insights and the data available, here’s a deep dive into the three reasons that set the 2025 bull market apart:

1. The Hash Rate Race: Nation States Enter the Fray

“The Bitcoin hash rate is going absolutely parabolic, smashing through 400TH/s & another ATH!” Mikic exclaimed. Indeed, the Bitcoin network hash rate recently achieved a record-breaking 414 EH/s, marking an 80% surge over the last 12 months. This growth is particularly astonishing given the energy challenges in Texas and the escalating global electricity costs.

Mikic points out, “This is the 1st bear market where the hash rate is hitting new ATHs… Is this time different?” The answer seems to be a resounding yes. Nation states are now publicly (and maybe privately) mining Bitcoin.

El Salvador and Bhutan were the pioneers, and recently, Oman joined the league. Oman’s strategic move to mine Bitcoin aims to diversify its economy from oil dependence and bolster renewable energy initiatives, including flare gas mitigation. Remarkably, it is yet unknown if not more countries are already mining BTC in stealth mode without official announcement.

2. Supply Suffocation

Historically, bear markets have seen an influx of Bitcoin on exchanges. However, the current scenario paints a different picture. Mikic notes, “In every prior Bitcoin bear market we’ve seen an increase in the number of coins on exchanges. 2015 – Increase of 800K coins, 2018- Increase of 900K coins, 2022- DECREASE of 1 million since March 2020.”

According to data from Santiment, a mere 5.8% of Bitcoin is now on exchanges, the lowest since December 17, 2017. Furthermore, Bitcoin’s Exchange Depositing Transactions (SMA 7-day) plummeted to a 5-year low, reaching 30,798 BTC per day, a figure reminiscent of December 11, 2016. On-chain analyst Axel Adler Jr.’s takeaway? “People do not want to sell BTC. The supply deficit will continue to stimulate growth.”

3. The Great Wall Street Accumulation

The BlackRock Bitcoin spot ETF application stands as a watershed moment in Bitcoin’s journey towards mainstream adoption. Mikic emphasizes, “The Blackrock Bitcoin ETF application will be remembered as a pivotal moment for Bitcoin’s future mainstream adoption. TRILLIONS of capital has now been given the green light to invest in Bitcoin.”

As the world’s largest asset manager, BlackRock’s entry could bestow unparalleled legitimacy upon the Bitcoin market. BlackRock will probably advertise Bitcoin and its new product in a big way, bringing new retail and institutional investors into BTC.

Looking at the current price stagnation in Bitcoin, it should be noted that there are no new inflows at the moment, as evidenced by the decreasing amount of stablecoins in the ecosystem. In the midst of the longest of all bear markets, there is simply no reason for retailers to get back in at the moment. However, an event like the approval of a Bitcoin spot ETF can change this abruptly and be the trigger for a Bitcoin bull run (even before halving).

In conclusion, the 2025 Bitcoin bull market is poised to be unlike any other. With nation states joining the mining race, a palpable supply shock, and Wall Street giants like BlackRock showing interest, Mikic’s final words resonate strongly: “Takeaway: NOBODY is bullish enough.”

At press time, BTC traded at $26,058.

Bitcoin price — BTC continues its sideways trend, 1-day chart | Source BTCUSD on TradingView.com

Featured image from iStock, chart from TradingView.com

Jake Simmons

Jake Simmons, a dedicated crypto journalist, has been passionate about Bitcoin since 2016 when he first learned about it. Through his extensive work with NewsBTC.com and Bitcoinist.com, Jake has become a trusted voice in the crypto community, guiding newcomers and seasoned enthusiasts alike towards a deeper understanding of this dynamic field.

His mission is simple yet profound: to demystify Bitcoin and cryptocurrencies and make them accessible to everyone.
With a professional career in the Bitcoin and crypto scene that began right after graduating with a degree in Information Systems in 2017, Jake has immersed himself in the industry. Jake joined the NewsBTC Group in late 2022. His educational background provides him with the technical prowess and analytical skills necessary to dissect complex topics and present them in an understandable format. Whether you are a casual reader curious about Bitcoin or an investor seeking to navigate the latest market trends, Jake’s insights offer valuable perspectives that bridge the gap between complex technology and everyday usage.

Jake is not just a reporter on technological trends; he is a firm believer in the transformative potential of Bitcoin over traditional fiat currencies. To him, the current financial system is on the brink of chaos, propelled by unchecked government actions and flawed Keynesian economic policies. Drawing from the principles of the Austrian school of economics, Jake views Bitcoin not merely as a digital asset but as a crucial step towards rectifying a failing monetary system. His libertarian views reinforce his stance that just as the church was separated from the state, so too should money be freed from governmental control.

For Jake, Bitcoin represents more than just an investment; it's a peaceful revolution. He envisions a future where Bitcoin fosters a sustainable and responsible financial framework for generations to come. His advocacy is not about opposition but about evolution, about laying the groundwork for a system that prioritizes transparency and equity over secrecy and inequality.

As a journalist, Jake’s articles are crafted with the precision of a scholar and the passion of a true believer. He provides not only news but also thoughtful analysis that connects the dots between daily developments and larger economic theories. His work is a beacon for those lost in the technical jargon often associated with crypto discussions, illuminating the practical implications and benefits of these technologies.

In summary, Jake Simmons is not just reporting on a revolution; he wants to be part of it, fully committed to enhancing public understanding and adoption of Bitcoin and cryptocurrencies. His work is more than just a collection of articles; it’s a resource, a guide, and a companion for anyone ready to explore the potential of this digital frontier. Whether you are taking your first steps into crypto or are a veteran looking to stay on top of the latest trends, Jake’s insights provide clarity and foresight in an often unpredictable industry. Join him on this journey to reshape the world of finance, one post at a time.

You can engage with his latest takes on Twitter: @realJakeSimmons.

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