Should You Buy Bitcoin in 2025?

Bitcoin in brief

How much does 1 Bitcoin cost?

The price of Bitcoin is on the rise this week. Currently, Bitcoin stands at £46,100, with a 24-hour increase of 2.1% and a 6.8% gain over the past week. The market capitalisation reaches approximately £907 billion, securing Bitcoin as the leading cryptocurrency (ranked 1st). Average daily trading volume over the last three months is around £22 billion, with about 19.7 million BTC in circulation, representing a market dominance of 53%. With this dynamic growth and enduring global interest, Bitcoin’s volatility remains a key factor to monitor for both new and seasoned UK investors.

Our complete review of the Bitcoin cryptocurrency

Have recent on-chain signals, technical breakouts and the resilience of Bitcoin’s price action sparked renewed institutional attention? Over the past three years, we’ve rigorously analysed Bitcoin’s evolution by cross-referencing proprietary algorithmic frameworks, consensus metrics, and multi-source data—encompassing price signals, on-chain flows, macro catalysts and the shifting competitive environment. So, why could Bitcoin again become a strategic entry point in the broader digital asset ecosystem in 2025?

Recent Performance and Market Context

Price Evolution

Bitcoin (BTC) has demonstrated significant resilience and bullish momentum, with its price climbing from lows near $16,000 in early 2023 to recent highs at approximately $66,000–$69,000 (as of June 2024). This three-year phase has been marked by two key periods: the recovery from the 2022 bear market and a decisive break above previous all-time highs in Q1 2024. This progression has not only reaffirmed Bitcoin’s role as digital gold but has positioned it as the dominant liquidity anchor in an increasingly complex crypto landscape.

• Q1 2024: Breakout above $65,000 following ETF approvals
• April 2024: Successful halving event, further tightening supply
• May–June 2024: Volatility spike with withstanding corrections, followed by rapid rebounds signaling buyer strength

Positive Recent Events

Notable catalysts underpin this positive phase:

• US Spot Bitcoin ETF approvals: Unlocked a new investor base, drawing billions in inflows and improving perceived legitimacy.
• Fourth Bitcoin Halving (April 2024): Reduced new BTC issuance, historically a precursor of strong multi-year bull cycles.
• Increased institutional accrual: Public companies and asset managers continue to accumulate BTC, signaling deepening adoption.

Crypto-Supportive Macro Environment

Several macro and sectoral dynamics are working in Bitcoin’s favour:

• Declining inflation and potential rate cuts: Should monetary policy pivot in major economies, risk assets—including Bitcoin—stand to benefit.
• Banking sector stress and de-dollarisation trends: Bitcoin strengthens its appeal as a non-sovereign store of value.
• Growing developer and corporate focus on blockchain: Bitcoin as a platform is increasingly considered for tokenisation and Layer-2 innovation, reinforcing its foundational status.

Technical Analysis

Key Crypto Indicators

• RSI (Relative Strength Index): Currently stabilising between 54 and 62—comfortably away from overbought levels—facilitating further upside without technical exhaustion.
• MACD (Moving Average Convergence Divergence): Flashed bullish cross signals mid-May 2024, confirming a reversal from the April post-halving consolidation.
• 200-day SMA (Simple Moving Average): The price sits well above this long-term moving average (now around $50,000), indicating persistent bullish structure.

Support Levels and Reversal Signals

• Support: $61,000 and $56,000 are solid demand zones, repeatedly tested and defended since late Q1, while $48,000 represents the ultimate “line in the sand.”
• Potential Reversal: Daily and weekly timeframes have formed higher lows since March, and stochastic indicators suggest renewed bullish momentum is consolidating.

Favourable Momentum

The technical environment implies:

• Healthy, non-parabolic growth after ETF-driven surges
• Re-accumulation phases evident in on-chain flows (decline in exchange balances)
• Strong historical precedent for post-halving expansions

Fundamental Analysis

Growing Adoption and Strategic Partnerships

• Institutional adoption: Steady allocation increases from pension funds, endowments, and public companies (notably in North America and Western Europe).
• Payment rail integrations: Major fintechs (PayPal, Square, Revolut) expanding Bitcoin support and custody services.
• Ecosystem development: Layer-2 solutions (e.g., Lightning Network) facilitating real-world payments and microtransactions.

Attractive Relative Valuation

• Market Capitalisation: Now exceeding $1.3 trillion, making Bitcoin the 9th largest asset by market cap globally—ahead of most S&P 500 companies.
• Fully Diluted Valuation (FDV): Remains compelling, with future supply now more predictable post-halving, reinforcing long-term scarcity value.
• Relative attractiveness: When benchmarked against traditional assets (gold, tech stocks), Bitcoin’s risk-adjusted payoff profile retains considerable allure.

Structural Strengths

• Technological innovation: Continued scalability and privacy upgrades; Taproot and inscription-related protocols are unlocking new functionality.
• Active community: Developer counts and capital allocation to Bitcoin-native startups are rising year-on-year.
• Differentiation: Bitcoin’s censorship-resistant, supply-capped, decentralised architecture remains unmatched—now serving as collateral and reserve asset for emerging DeFi protocols.

Trading Volume and Liquidity

• Daily Spot Volume: Regularly surpassing $17–20 billion, reflecting robust liquidity.
• Futures/Open Interest: Consistently high, concentrated on large, regulated venues.
• Market Depth: Tight bid-ask spreads and deep orderbooks, supporting meaningful position entries and exits.

Dominance and Market Position

Bitcoin Dominance Index: Ranges from 52% to 55%, reaffirming its status as the cornerstone of the digital asset class, particularly as altcoins struggle to attract durable flows amid sector rotations.

Catalysts and Positive Outlook

Protocol Upgrades & Integrations

• Forthcoming protocol updates (such as BIP324 encryption) will enhance privacy and transactional efficiency.
• Increased integration with Layer-2 (Lightning, Runes) and tokenisation solutions is expanding Bitcoin’s utility beyond a store of value.

Regulatory Tailwinds

• Movement towards clear, favourable regulation for spot BTC trading in the UK, EU, and APAC.
• US political discourse shifting in favour of crypto-responsible innovation as a competitive imperative.

Institutional Adoption and New Use Cases

• Further international ETF launches are under consideration (e.g., Asia, LatAm), which could catalyse a new wave of inflows.
• Sovereign-level interest (e.g., government treasuries exploring BTC allocation) and the use of Bitcoin in cross-border settlements suggest it is moving towards true macro asset status.

Investment Strategies Across Time Horizons

Short-Term (Weeks–Months)

• Bitcoin is consolidating above $66,000, with volatility gradually compressing post-halving—often a precursor to expansionary moves.
• Technical pullbacks into $61,000–$62,000 have historically marked high-probability re-accumulation zones.
• Entry before major protocol announcements or ETF-related liquidity injections might appeal to risk-seeking profiles.

Medium-Term (6–18 Months)

• Anticipation of further ETF launches and increased fiat inflows to digital assets as regulatory clarity is achieved.
• Growing institutional involvement could drive staged breakouts towards $80,000+, especially if monetary policy turns more accommodative.
• Positioning ahead of broad corporate treasury adoption and Layer-2 milestones seems advantageous for participants seeking asymmetrical risk/reward scenarios.

Long-Term (2–5 Years)

• The multi-year thesis is underpinned by structural scarcity (halving supply shocks), persistent brand/network effect, and evolving role in portfolios as “digital gold.”
• Historically, post-halving cycles have delivered outsized returns for patient capital, with multi-fold expansion from each prior inflection point.
• As a core allocation in diversified digital asset strategies, Bitcoin continues to offer strong defensive characteristics and growth appeal, particularly in periods of macro or equity market stress.

Bitcoin Price Projections (2025–2029)

Is Now the Right Time to Consider Buying Bitcoin?

Key Strengths Recap:
- Exceptional resilience and consistent upward momentum, even in turbulent markets
- Unique supply dynamics post-halving, with a proven history of triggering bull cycles
- Strong institutional adoption and deepening mainstream legitimacy via regulated products
- Continued development on the protocol and Layer-2 innovation, expanding real-world functionality
- Structural scarcity, dominance in market capitalisation, and strong technical signals supporting further upside

Outlook:
Bitcoin appears to represent an outstanding opportunity for investors seeking both value preservation and upside participation in the digital asset revolution. The depth of liquidity, robust technical and on-chain health, growing corporate adoption, and a maturing regulatory environment all reinforce the conviction that Bitcoin could well embark on a new bullish phase in the coming years. For investors adopting a disciplined risk management approach, Bitcoin’s recent market performance and future roadmap together seem to justify renewed interest.

Bitcoin remains a highly volatile digital asset offering superb opportunities for dynamic investing, yet requiring rigorous risk controls. The recent price momentum highlights Bitcoin’s ability to generate swift, substantial moves, while the evolving macroeconomic regime underlines the importance of selectivity. Key technical levels to monitor are $61,000 as immediate support and $74,000 as the next major resistance. The forthcoming protocol upgrade scheduled for Q2 2025 could act as a catalyst for Bitcoin’s next growth phase.

How to buy Bitcoin?

It’s now simple and secure for UK investors to buy Bitcoin online via regulated platforms. Whether you’re seeking to own Bitcoin directly or simply trade on its price movements, you have two main options: buying Bitcoin outright (“spot” purchase), or speculating via contracts for difference (CFDs). Each method offers unique advantages and considerations. For help choosing the right platform, take a look at our comparison table further down the page.

Spot Purchase (Buying Bitcoin Outright)

A spot purchase of Bitcoin means you own the actual cryptocurrency, held securely in your digital wallet. Most UK platforms charge a fixed commission per transaction, often a few pounds regardless of purchase size.

Important information

For example:
If Bitcoin is priced at £40,000, and you invest £1,000, you can buy approximately 0.025 BTC, factoring in an average transaction fee of around £5.
Gain scenario:
If Bitcoin’s price rises by 10%, your holdings would then be worth £1,100.
Result: a gross profit of £100, or +10% on your investment.

Trading via CFD

CFD (Contract for Difference) trading on Bitcoin allows you to speculate on its price without owning the actual coin. Instead, you open a position with a broker on the expected price movement. CFD trading involves a spread (difference between buy/sell prices) and, if you keep your position overnight, daily financing fees.

Important information

For example, with £1,000 and 5x leverage, your market exposure is £5,000.
Gain scenario:
If Bitcoin moves up by 8%, your leveraged position would yield 8% × 5 = 40% profit.
Result: £400 gain on your £1,000 deposit (excluding fees).

Final Guidance

Always compare the fees and terms offered by different platforms before investing, as these can impact your returns. The best method depends on your investment goals and experience: whether you seek direct ownership and long-term holding, or prefer leveraged trading for potential short-term gains. For a detailed comparison of leading UK platforms, refer to our table below.

Our 7 tips for buying Bitcoin

The latest Bitcoin news

London-based asset manager Fineqia received regulatory approval to offer a Bitcoin ETP, marking a UK crypto milestone. On June 25, the UK’s Financial Conduct Authority (FCA) authorized Fineqia International to list a Bitcoin exchange-traded product (ETP) on a major European exchange. This decision signals growing regulatory openness towards institutional Bitcoin products with UK connections, notably after similar ETP launches in the EU and the US. The FCA’s approval is anticipated to boost British institutional demand for Bitcoin, improve local market liquidity, and provide UK-based investors safer, regulated access to the cryptocurrency, which supports increasing adoption and integration into traditional financial instruments within the country.

HM Treasury reaffirmed its intent to establish the UK as a “global crypto hub,” with Bitcoin as a key focus. In a June 2024 policy update, HM Treasury reiterated government commitment to supporting crypto innovation, explicitly mentioning digital assets like Bitcoin in the UK’s future finance roadmap. Officials highlight ongoing consultations with industry stakeholders to refine upcoming regulatory frameworks, focusing on clarity and investor protection. These measures are seen positively by market observers, as they foster a predictable business environment, which is crucial for new crypto services, institutional participation, and broader public trust in Bitcoin adoption.

Coinbase’s UK platform reported a 15% surge in GBP-denominated Bitcoin trading volumes week-over-week, following recent market rallies. According to figures released by Coinbase on June 26, their London-based exchange experienced a significant uptick in activity by British retail and professional investors. The platform attributes this to renewed bullish sentiment triggered by positive regulatory signals and rising global Bitcoin spot prices. The increase in GBP trades reflects growing local demand and highlights the importance of the UK’s trading infrastructure in providing access to Bitcoin during periods of heightened interest and price momentum.

Bank of England officials acknowledged that Bitcoin and other cryptoassets are increasingly monitored for financial system impact, with a constructive tone on innovation. In a recent speech, Deputy Governor Sarah Breeden emphasized that the UK's central bank is actively monitoring Bitcoin’s integration into broader financial markets. She noted that, with appropriate regulatory guardrails, crypto technologies—specifically decentralized settlement and programmable money—can contribute to the resilience and modernization of the UK’s financial system. This position, while cautious, is viewed as positive reinforcement of the country’s willingness to engage with the Bitcoin sector in a measured and strategic manner.

UK high-street bank Santander expanded Bitcoin educational offerings and announced a new pilot for crypto payments for select London clients. On June 24, Santander UK announced the rollout of online seminars aimed at educating its retail and SME customers about Bitcoin and blockchain fundamentals. Additionally, it revealed the launch of a limited pilot permitting select London-based business clients to receive Bitcoin payments for digital services. These initiatives underscore rising mainstream acceptance and the willingness of established banks to innovate around Bitcoin use cases, thereby improving the practical knowledge and utility of the cryptocurrency for UK residents and businesses.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.