Digital asset analysts suggest cryptocurrency prices could continue to rise through 2025.
In the short term, investors are expected to focus more on altcoins, which are perceived as having greater potential for gains than Bitcoin, especially following Bitcoin's surge past US$100,000 in early December.
In November, Bitcoin's price climbed by more than 50%, reaching a record high of $99,600, then continued its upward trajectory in December, hitting $103,607.
A significant driver of the rally was the US presidential election victory of Donald Trump, whose pro-crypto policies -- such as hinting at a national reserve for Bitcoin and encouraging US Bitcoin mining -- have fuelled market optimism.
Woramet Chansen, an investment advisor at Merkle Capital, said Bitcoin and the broader crypto market, particularly the Ethereum ecosystem, have strong growth prospects in December and into 2025.
The catalysts are the impact of the US election, Ethereum ecosystem growth and the decline of Bitcoin's dominance.
According to Mr Woramet, Trump's victory heightened expectations for the crypto market in both the short and long term.
He said Trump has demonstrated a stronger pro-crypto stance than any previous US presidential candidate, including announcing a new Securities and Exchange Commission chair that would facilitate more favourable crypto regulations.
These soundbites have already had a significant impact on Bitcoin's price, with support for the crypto market expected to last for four years.
Mr Woramet said investment in the Ethereum ecosystem has been steadily increasing.
Following the US election, investors showed an increased appetite for riskier assets.
As a result, Ethereum surged by more than 56% in November, bolstered by strong buying activity from the Ethereum spot exchange-traded fund, which reached an all-time high.
This growth reflects a growing willingness among institutional investors to embrace higher-risk assets, he said.
When assessing the crypto investment outlook, the total value locked in the Ethereum network has risen significantly, with the restricted value reaching as high as $70 billion, said Mr Woramet.
As a result, the Ethereum ecosystem remains an area to watch in December, particularly for emerging technology sectors with strong fundamentals and undervalued market caps, he said.
According to Mr Woramet, Bitcoin's dominance has declined, reflecting a shift towards increased risk-taking.
In late November, Bitcoin's dominance fell in terms of its value relative to the overall crypto market, indicating funds were starting to flow from Bitcoin into altcoins.
He said Bitcoin dominance has a key support level of 53%, which is expected to drive more capital into altcoins throughout December.
However, in every previous crypto cycle, Bitcoin dominance has typically risen to around 70% before transitioning into an altcoin cycle.
As a result, altcoins have significant growth potential in the short term. In the medium term however, capital may shift back to Bitcoin as altcoin prices adjust beyond market expectations, said Mr Woramet.
Mana Khanijou, chief commercial officer at Merkle Capital, said in the final quarter of 2024, the digital asset market is expected to deliver strong returns driven by macroeconomic factors, particularly the results of the US election.
"I recommend carefully planning your investments and maintaining an acceptable level of risk," he said.
"All investments carry risks, so it's crucial to conduct thorough analysis before making any decisions."