The year 2024 witnessed a resurgence in the cryptocurrency market, triggering another bull run. But unlike the boom periods of 2017 and 2021, where both Bitcoin and alternative cryptocurrencies (altcoins) such as Ethereum saw substantial price increases, the current market appears to be primarily benefiting Bitcoin.
Real-time cryptocurrency prices are readily available on platforms like Binance. Analyzing price movements over the past year reveals that Bitcoin has surged by 71.9%, while Ethereum has experienced a decrease of approximately 26.3%. Other prominent altcoins, including BNB, Binance’s own token, have also risen since last year, but their gains haven’t matched Bitcoin’s performance.
This Bitcoin-centric growth isn’t unexpected. Institutional adoption of Bitcoin is a crucial factor driving this recent bull market. The SEC’s approval of spot Bitcoin ETFs in early 2024 paved the way for a compliance-friendly investment option, drawing significant capital from institutional investors. By the end of the year, U.S.-listed spot Bitcoin ETFs collectively held $104.1 billion in assets, with $27.4 billion originating from institutions managing over $100 million in assets.
Further boosting the market was Donald Trump’s election to a second term as U.S. President. This event generated optimism that his administration would accelerate regulatory clarity within the United States. Confidence in U.S. regulatory developments has indeed increased, with policymakers from both parties finalizing a transparent and comprehensive framework for crypto regulations.
As the latest surge subsides, key questions arise: Will another bull wave emerge as regulatory certainty solidifies? And will major altcoins, not just Bitcoin, benefit from price appreciation? To gain insights, let’s consider a recent interview with a leading figure in the cryptocurrency industry.
2024-2025 Crypto Bull Run: Fueled by Institutional Bitcoin Investments
The 2017 cryptocurrency bull run was largely driven by speculation surrounding initial coin offerings (ICOs). During the 2021 boom, the surge in popularity of non-fungible tokens (NFTs) played a vital role.
However, the 2024-2025 bull run distinguishes itself through its intense concentration on Bitcoin and the significant involvement of institutional investors, rather than individual “crypto whales” and a substantial influx of retail traders.
Earlier this month, Catherine Chen, Head of VIP and Institutional at Binance, joined Jessica Walker, host of Behind Binance, to discuss the current bull run’s dynamics and its potential impact on crypto prices. Chen emphasized the growing institutional interest in crypto, highlighting the launch of spot cryptocurrency ETFs last year as a “pivotal moment.” She explained that “institutional investors have a fiduciary duty to properly evaluate this asset class and ETFs have lent it much-needed legitimacy.”
Chen also pointed out that various institutional investors are entering the crypto space at different rates, with larger, more cautious entities remaining largely on the sidelines. “Regulatory clarity” remains the primary obstacle, particularly for institutions like insurance firms and pension funds, which require well-defined regulations before committing to direct crypto investments.
Implications for Bitcoin and Altcoin Valuations
While the interview primarily focused on institutional adoption, we can extrapolate its implications for Bitcoin and altcoin prices moving forward.
Chen’s comments on regulatory clarity suggest that the finalization and implementation of cryptocurrency regulatory frameworks in the U.S. and other major jurisdictions could trigger a further influx of capital into the asset class. Initially, this might simply lead to another Bitcoin-dominated bull run, with Bitcoin experiencing greater price appreciation than major altcoins like ETH and BNB.
However, in time, this could translate into a more robust bull run for altcoins as well. Once institutional investors complete their initial Bitcoin allocations, they may begin allocating capital to ETH and other major altcoins, especially as new spot altcoin ETFs enter the market.
In essence, the significant role played by institutional investors in the current bull run explains why it has unfolded so differently from the 2017 and 2021 booms.
Key Takeaways for Individual Investors
With Bitcoin’s price stabilizing after rallies from October 2024 to January 2025 and again from April 2025 through May 2025, it might appear that the bull run is nearing its end.
However, according to Xu Han of HashKey Capital, “the crypto cycle remains in a growth phase.” Han also suggests that the anticipated shift from hawkish to dovish monetary policy by the U.S. Federal Reserve could act as another catalyst, potentially prolonging the current bull run.
In other words, if the Federal Reserve continues to lower interest rates and eases its institutional tightening measures, the resulting increase in liquidity could positively impact crypto prices, based on historical trends. Individual investors should consider these factors when determining their market stance.