In 2021, cryptocurrencies experienced remarkable gains, sparking enduring interest from investors eager for a repeat of those prosperous times. Although the inauguration of President Trump alleviated many fundamental issues for cryptocurrencies, economic disturbances under the new administration disrupted the market. Despite these challenges, Bitcoin managed to reach ambitious six-figure prices. The crucial question now is what lies ahead for cryptocurrencies in 2025.
Distinct Trends in 2025 vs. 2021 Altcoin Bull Market
The anticipated bull market of 2025 is set to be distinctly different from the one seen in 2021, according to leading analysts. Even with the resolution of tariff issues, the prevailing conditions differ significantly from those of 2021, causing this divergence. The analyst, known as Lady of Crypto, emphasized the reality check, stating the impossibility of a 2021-style bull run amid quantitative tightening and high interest rates. No bull run in history has happened under such circumstances, implying that while significant surges are expected, not every altcoin will benefit equally. She suggests leveraging this scenario to advantage.
Growth in US Tariff Revenues
President Trump aims to diminish the budget deficit using tariffs, adopting a tough stance against other countries in negotiations. This strategy, although tumultuous for the global economy, has shown noticeable results. The European Union revisited talks, and China remained silent against the latest bold moves. Numerous countries are now on the brink of signing tariff agreements, generating substantial revenue for the United States.
In April, the US tariff revenue hit $16.5 billion, soaring to a record $22.3 billion in May. Customs and certain excise taxes have more than doubled in the past two months. Since the start of the year, the government collected $67.2 billion in tariff revenue, now representing 4% of the total federal income, doubling from recent averages.
Insights on BTC and ETH
The recurrence of a 2021-like bull run seems unlikely, partly due to the rising US tariff revenues strengthening Trump’s resolve. What direction do analysts project for the current market? Analyst Poppe acknowledged a hidden bullish divergence on Ethereum (ETH) $2,412 and predicts an upward break, albeit the consolidation phase continues longer than expected. However, this is still viewed positively since ETH maintains a higher level compared to its April lows.
On the other hand, DonAlt shared a Bitcoin (BTC) $105,202 chart, suggesting the possibility of a re-test at lower levels. Nevertheless, he argues that this re-test wouldn’t be catastrophic. Should DonAlt’s prediction come to fruition, BTC could revisit $90,787 and explore deeper tests of support.