Why 2025 is the Year to Start Trading

It is no secret that 2024 was a significant year for the markets on all fronts, setting the stage for big trading opportunities. From Bank of Japan’s historic decision of ending its negative interest rate policy to Wall Street’s dramatic crash in August, and the Federal Reserve’s first rate cut since the pandemic, each event had its own consequences for both traders and investors.  

Not only this, but adding to the year’s significance was Trump’s return to the U.S. presidency – a development that sparked optimism in some sectors, most specifically cryptocurrency markets. 

However, have you stopped for a second and wondered “what would have happened if I started trading in 2024?” 

In this article, we will be diving deep into pivotal 2024 moments, unpacking their market impact and what do they mean to you as a trader gearing up for a profitable 2025.

A Trip Down Memory Lane 

2024 has been a transformative period in the global financial markets, accompanied by a mix of challenges and opportunities. The world’s biggest concerns were mainly centered around inflation battles, economic uncertainties, and monetary policy shifts.  

A Crypto Beginning 

The highly awaited approval of spot Bitcoin ETFs happened at the beginning of last year, sparking institutional interest and bringing Bitcoin into the mainstream financial spotlight. 

This step forward opened new doors for traders and investors, boosting market liquidity and positioning Bitcoin as a more accessible and legitimate asset class. Ripple effects were felt across the crypto industry, setting the tone for a year of growth and innovation. 

Another milestone worth mentioning was the Bitcoin Halving, an event that occurs every four years, and reduces the block reward by 50%. The 2024 Bitcoin halving played a pivotal role in shaping the crypto market’s trajectory, influencing its price, mining ecosystem, and overall market perception. 

Historic March Interest Rate Hike 

On a more traditional note, the Bank of Japan (BoJ) made a big move. On March 19th, it raised interest rates for the first time in 17 years – the benchmark rate went from negative to a range of 0-0.1%. 

Why was it considered historical, though? This decision marked the end of an era, a policy that was initially introduced nearly 10 years ago to fight deflation and stimulate economic activity in the country. Japan was not the sole economy affected, but this policy change had profound implications for global markets, especially Forex. 

• Yen strengthened sharply. 

• The quick rise in the yen caused a wider sell-off in risky assets, including equities.   

• In July 2024, Japan’s central bank implemented a further 0.25% rate hike, creating market turbulence later in August.  
  

August’s Wall Street Crash 

Following Japan’s monetary policy shift, global markets experienced a dramatic downturn and reached its peak on August 5^th. 

• Major indices plummeted across the board. 

• Investor anxiety intensified on a global scale. 

• Tokyo’s Nikkei 225 index recorded one of its harshest declines, closing over 12% lower in a single trading day. 

The impact on the United States was less severe than in Asia, yet still significant: 

1. The Dow Jones Industrial Average (DJIA) dropped 2.6%. 

2. S&P500 and Nasdaq Composite declined by 3%. 

3. ‘Magnificent Seven’ stocks lost almost $1 trillion in market capitalization. 

September Sees First Rate Cut Post-Recovery 

The Federal Reserve made its first rate cut since the pandemic recovery in September 2024, lowering the Federal Funds Rate by 50bps to 4.75%-5%.  
 

• This move was seen as a shift from the aggressive rate hikes aimed at combating inflation, suggesting inflationary pressures were easing in the U.S.  
   

• Although this measure was intended to enhance economic growth, stock markets experienced fluctuations, and bond yields decreased as the U.S. dollar weakened against several currencies. 

• The commodities market also got affected, with the price of gold fluctuating.  

November Elections 

Trump’s return to the U.S. presidency had a massive impact on the market. One of the most notable moves was his appointment of a pro-crypto SEC chair to replace Gensler – a change that sparked optimism in the crypto market.  

This decision led to a surge in crypto prices, specifically Bitcoin, which broke above the $80,000 resistance level for the first time since early 2024.  

Alongside the cryptocurrency industry, Trump’s comeback also spurred expansion in conventional markets, especially within the energy, defense, and financial sectors.  

Bitcoin Reaches Six Figures 

Following a tumultuous 2024, the largest cryptocurrency by market capitalization concluded the year by hitting the $100,000 threshold, marking a significant achievement for the cryptocurrency market. Over the past year, the king coin has risen about 148% in value. 

Read all about it here. 

If you traded in 2024... 

Yes, 2024 was big for the markets, but did you make the most out of it? The Trading Pit takes a closer look at the most traded assets of the year (and what you missed out on…).
 

Before we get to the comparative analysis, it is important to note that: 

• A hypothetical investment of $10,000 has been made for each asset on January 1^st, 2024.  

• The performance was tracked approximately until December 31^st, 2024. 

• The percentage change and profit/loss were calculated based on closing prices on those dates.  

• This is not considered as financial advice. Trade at your own risk.  

Bitcoin (BTC) 

If you had invested $10,000 in Bitcoin at the beginning of 2024, here's how much profit you would have potentially made:  

• With Bitcoin’s value jumping from $45,098 to $93,899, your initial investment would have doubled, reaching $20,808.52.  

• That’s a profit of $10,808.52. 

S&P 500 (SP500) 

A $10,000 investment in this index last year, when it was at 4,745, would now be worth 12,394.69, as it climbed to 5,881.  

• That’s $2,394.69 in profit.  

• This proves that traditional markets still offer dependable returns for those looking to build their portfolios. 

Gold (XAUUSD) 

Gold has always been known for being a safe haven.

• A year ago, $10,000 invested in gold at $2,064 per ounce would now have grown to $12,620.52, as prices rose to $2,606. 

• That’s a profit of $2,620.52 – a solid choice for investors seeking stability and value. 

WTI Crude Oil 

• A $10,000 investment in WTI Crude Oil when prices were $71.12 per barrel would have inched up to $10,104.89 today, with prices at $71.87.  

• A modest $104.89 profit shows oil’s resilience but highlights its slower movement compared to other assets. 

1. If you had invested $10,000 across these assets one year ago, Bitcoin would have been the best performer, delivering over $10,800 in profit.  
   

2. Gold and the S&P 500 also delivered strong returns, while crude oil provided stability.  

Every asset tells a story – and what you didn’t trade in 2024 could be yours in 2025.  

The year you finally become a prop trader 

If you’ve spent the last year observing from the sidelines or hesitating to make your move, there is no better time to take the leap than now.  

Let’s have a quick look at 2025’s potential market movements and trends: 

• The U.S. economy and assets are expected to grow strongly this year, especially with Trump’s return to the White House.  
   

• We can also expect inflation to remain under control – but above the target – due to outside factors, such as trade barriers.  
   

• The surge fueled by AI is expected to persist, and Wall Street anticipates the stock market rally led by major tech companies to expand further. 
   

• The bond market might face challenges due to tight pricing and concerns about government debt.  
   

• Opinions on Wall Street are divided regarding gold’s ability to maintain its appeal, but bullish investors view it as a solid safeguard against the uncertain macroeconomic environment.  
   

• The dollar appears expensive, but Wall Street expects it to strengthen further in the near term as Trump’s policies take effect. Some institutions even predict it could reach parity with the euro. 

• Fewer U.S. cuts are projected this year due to Trump’s potential inflationary policies. Bank of England is also facing similar headaches, with Europe expected to lean more dovish with multiple cuts and Japan remaining the only major bank raising rates.  

While these market insights highlight exciting opportunities, they mean little without action. With that being said, 2025 is the year you finally become that prop trader you’ve been meaning to be. 

For 2025, we encourage traders to take the plunge into prop trading and join the community for even greater success. Prop trading is all about seizing opportunities, and this is your moment to take the step toward enhancing your trading journey and achieving your 2025 resolutions. 

See what you missed last year and make 2025 the year you become a prop trader. 

We are committed to helping you become the prop trader you deserve to be—delivering trading as it should be.