Bitcoin saw remarkable gains in 2024. New spot ETFs launched in January, attracting billions in fresh capital. The iShares Bitcoin Trust ETF (IBIT) soared above $50 billion in assets under management. This success, among other ETFs successes, fueled confidence across the market.

Source: @lookonchain

Major financial players joined the Bitcoin party. BNY Mellon, America’s oldest bank, received approval to offer Bitcoin custody services. BlackRock, the world’s largest asset manager, added spot Bitcoin ETF options. Inspired by MicroStrategy, more companies embraced a Bitcoin strategy, including Semler Scientific and Metaplanet. Institutional interest in crypto ETFs also jumped. Over 21,000 BTC, worth about $2.22 billion, flowed into these funds.

Bitcoin’s fourth halving on April 19, 2024, slashed block rewards from 6.25 BTC to 3.125 BTC. This event reduced the pace of new Bitcoin entering circulation. By late 2024, BTC surpassed $100,000, securing its spot as one of the best crypto investments of the year.

Leaders voiced optimism, too. said Jan van Eck after the SEC approved a spot Bitcoin ETF in early 2024. Even Trump hinted at ambitious crypto plans, saying the United States would do “something great with crypto.” These signals suggest a future where Bitcoin stays at the forefront of digital assets.

Bitcoin in 2025 – L2 Innovations Power the Next Phase

Experts now look ahead to Bitcoin 2025 with high expectations. Van Eck’s team is closely watching Bitcoin layer-2 (L2) solutions. These emerging blockchains address Bitcoin’s scaling limits by allowing higher transaction throughput and lower latency. They also bring smart contract functionality, which can unlock decentralized finance (DeFi) applications for BTC holders, also known as Bitcoin finance (BTCfi).

Alongside L2 projects, the Core blockchain is making waves as a Bitcoin-powered layer-1. The Core blockchain completed its Fusion upgrade, strengthen the integration between Bitcoin and Core

As a result, Bitcoin holders can earn rewards while securing their assets by staking CORE and BTC on Element, available for Android and iOS for Apple devices. Over 9,000 BTC are already staked on Core, which claims 75% of global Bitcoin mining power through its Satoshi Plus consensus.

In 2024, the total value locked (TVL) in Bitcoin L2s surpassed 30,000 BTC, worth about $3 billion. This figure represents a 600% year-to-date increase. Over 75 Bitcoin L2 projects are in development. However, only a few will likely see widespread adoption, with CORE leading the way, as seen in the chart below.

BTCfi is transforming Bitcoin from a passive store of value into an active player in decentralized ecosystems. Supporters believe Bitcoin L2s will spark new liquidity, cross-chain innovation, and integrated financial services.

Source: Defillama

These potential breakthroughs excite many who see Bitcoin as one of the best crypto investments in 2025. By embracing L2s, institutional players and individual holders gain more ways to use BTC. If these developments continue, 2025 could become the year Bitcoin cements its place at the heart of decentralized finance..

Disclaimer: The information provided is for general informational purposes only and should not be considered financial advice. Always do your own research before making any investment decisions.