The year 2025 was a remarkable year for Bitcoin, witnessing record-breaking achievements and solidifying its position as a major financial asset, with increasing interest from governments and financial institutions on Wall Street.
#### Price Performance and Records
Bitcoin began the year at around $94,000 and reached its all-time high of $126,000 in October. It experienced a temporary drop to $76,000 in April due to the escalation of the global trade war under President Donald Trump's administration. By mid-December, Bitcoin's dominance in the cryptocurrency market rose to 57.6% of the total market cap of $3 trillion, compared to 48% at the beginning of the year. Bitcoin tested its reputation as "digital gold" with the resurgence of actual gold prices.
#### Government Involvement
President Trump issued an executive order to create a strategic reserve for Bitcoin, with the United States holding approximately 200,000 Bitcoins worth up to $18.1 billion. David Sachs, the White House advisor on AI and digital currencies, announced that Bitcoins sourced from criminal cases would not be sold but stored in a reserve similar to "Fort Knox." Countries like Brazil and Russia proposed similar measures. U.S. states such as Arizona, New Hampshire, and Texas have passed laws for official Bitcoin reserves, with bills introduced in other states. In March, Senator Cynthia Lummis proposed legislation to purchase over $100 billion worth of Bitcoin, focusing on financially neutral methods.
#### Wall Street and Institutional Involvement
Institutional adoption of Bitcoin continued, with new companies putting Bitcoin on their balance sheets, inspired by the "MicroStrategy" model (now Strategy) that issued stocks and debt to increase their holdings. By early December, the number of public companies holding Bitcoin reached 71, collectively owning over 961,000 Bitcoins – three times what governments hold combined. However, some companies faced challenges, such as their stock prices dropping by up to 99%, and concerns about selling holdings in case of price declines.
#### Other Notable Events
The year saw debate over privacy, such as the trial of Samourai Wallet developers on charges of operating an unlicensed mixing service, with prison sentences and mentions of potential pardons. There was also discussion about changes to the Bitcoin code, such as the Bitcoin Core v30 update that raised OP_RETURN limits, raising concerns about spam or censorship. The anticipated "altcoin season" did not materialize, reflecting Bitcoin's maturity as an independent asset.
In conclusion, 2025 confirmed the shift of Bitcoin from an anti-establishment asset to one attracting governments and large investors, despite volatility, with a slow trajectory towards the end of the year around $90,000.
