FILE PHOTO: Representation of the bitcoin cryptocurrency and a price chart are seen in this illustration taken October 24, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
HANOI: Bitcoin has been predicted to be among the most lucrative investment instruments in 2025, despite having not been legalised in Vietnam.
The year 2024 marks a historic record for the digital currency as its price surpassed US$100,000 per bitcoin on Dec 5 and reached a peak of US$108,000/bitcoin on Dec 17.
It then dropped to US$92,000/bitcoin on Dec 20 last year after the US Federal Reserve chair Jerome Powell stated that the institution was not allowed to own bitcoin and did not want to amend the laws to do so. However, the price quickly recovered to nearly US$99,000/bitcoin in the final days of 2024 as large investors continued to buy and hold.
By 10.45pm on Jan 4, the price-tracking website for crypto assets CoinMarketCap listed the price at US$97,680/bitcoin, up 0.22% in the last 24 hours.
Since the beginning of the year, the price of major cryptos has seen positive growth: bitcoin increased by 130%, ethereum by 52%, bnb by 124% and dogecoin more than 300%.
The year 2024 also marks a historic turning point for cryptos with the emergence of exchange-traded funds (ETF) of bitcoin and ethereum – the second-biggest cryptocurrency by market capitalisation after bitcoin. This signals the organised participation of institutional investors and top global professional asset managers in the digital currency market.
An ETF is an investment vehicle that pools a group of securities – such as stocks, bonds, cryptos and other types of assets – into a fund.
It can be traded like an individual stock on an exchange.
Investors in bitcoin and other digital currencies look forward to Donald Trump’s presidency as he has promised ‘friendly’ policies towards the crypto industry.
A Council of Advisers for Digital Assets is being formed after a letter was sent to the President-elect and the US Congress by the US Blockchain Association, pushing for policies that would promote the adoption of digital assets in the first 100 days of his presidency.
Earlier, during his presidential campaign, Trump had repeatedly mentioned the idea of creating a bitcoin reserve when he took office.
Economist Dinh Trong Thinh said cryptocurrencies, including bitcoin, were the most profitable investments in 2024 and will remain so next year.
“I believe the price of cryptocurrencies will continue to grow in 2025. This is an unconventional investment channel in Vietnam.
“But in reality, many Vietnamese are investing in and holding cryptocurrencies,” he said.
“The government needs to soon issue a legal framework for digital assets and digital currencies to both protect investors and prevent tax evasion.”
Because of their perceived lucrativeness, frauds related to digital currency trading are very common in Vietnam.
A prime recent example is the case of Pho Duc Nam from Ba Ria–Vung Tau Province, known on the social media platform TikTok as Mr Pips, who lured more than 2,600 people into foreign exchange and derivatives trading and got assets worth 5.2 trillion dong seized or frozen by the authorities.
Another case is Ho Thi Bich Ngoc from Hanoi, who performed a similar fraud and appropriated nearly 500 billion dong. — Viet Nam News/ANN
