As the year comes to a close, Bitcoin is all set to end at a remarkable high, nearing the $110,000 milestone. Some of the key developments that made this happen include the approval of Bitcoin ETFs, the much-anticipated Bitcoin halving, and most importantly, the reelection of Donald Trump as the 47th US President. These events, coupled with pro-crypto leadership at key regulatory bodies like the SEC and CFTC, and the historic achievement of Bitcoin crossing the $100,000 mark, have made 2024 one of the most memorable years for the crypto community.
With the crypto industry at the forefront of a major makeover, the pipeline for crypto looks very promising. Countries like China and Morocco revisiting their crypto policies and the emergence of better regulatory clarity in the US has set a global stage for broader adoption bringing crypto mainstream. As we enter 2025, here are some trends that could take shape – carrying the momentum given in 2024. Let's take a closer look at them.
Increased Retail Adoption
In 2024, Trump’s victory has brought a lot of confidence to retail investors across the globe in anticipation of crypto-friendly regulations. Since then there has been a spike in retail investors entering the market.
But, in 2025, we could see retail adoption increase multifold given the optimism in the market. After Trump assumes office in January, we are likely to see a spree of policy changes on crypto.
With the US SEC being led by a pro-crypto chair – Paul Atkins, the US will lead global crypto regulation further maturing the crypto market. Countries like China and Morocco legalising crypto and the EU coming up with MiCA regulations will also add to the retail adoption in 2025.
Doubling Down On Countries Holding Crypto
2025 will be the year when we see many more countries start a “Bitcoin Reserve”. We saw this happen in 2024 when countries like Bhutan, Argentina and El Salvador among others held huge amounts in Bitcoin.
Even Trump has promised to create a BTC reserve on par with Gold and oil reserves followed by Brazil’s proposal to do the same. Since the US is already the largest geopolitical holder of Bitcoin, with approximately 207,189 Bitcoins in its possession, other countries like China and Russia will aggressively add Bitcoin and other major tokens to their treasury, trying to establish strength through Virtual Digital Assets (VDAs).
Smaller countries like Poland have also passed bills to establish Bitcoin reserves showing the changing perception of Bitcoin across different countries.
As more and more countries recognise the resilience of crypto against other asset classes and even their own currencies, crypto will become the go-to option to safeguard the economies and hedge against inflation which is turning into a major distress globally.
Increased ETF Adoption
Bitcoin ETFs that were launched earlier this year have crypto investments to the next level with with institutional inflows reaching an impressive $120 billion, significantly influencing the rally towards the end. In 2025, this number would increase drastically with institutions that were previously hesitant to enter the market likely to do so, further boosting inflows and making crypto a mainstream investment vehicle for institutions.
Adding to this momentum, the anticipated launch of new ETFs — such as Solana, Ripple, and others will help diversify their crypto holdings and also increase the liquidity of the market. As the market deepens, we could also see an uptick in derivative products tied to these ETFs, such as options and futures, further increasing market activity and resilience.
Rise Of AI Agents
In 2024, we saw the meme coin market grow to a whooping $126 Billion and the next year will be of the AI sector. Coins launched based on the AI Agents and the ones launched by the agents are likely to see high demand. An example of this is the meme coin GOAT, which gained traction after an AI chatbot, Truth Terminal, promoted it during an interaction.
What began as a fun experiment turned into a phenomenon, with GOAT reaching a market cap of over $1.3 billion. With the role of AI increasing day by day, the tokens launched by popular AI platforms like Virtuals Protocol and others have seen their market cap grow to $2.9 billion. Such tokens are expected to flood the crypto market with more and more AI Agents from Cognition Software, Microsoft and Open AI being launched in early 2025.
With Bitcoin on track to close 2024 near the $110,000 milestone, the crypto market is set to enter 2025 on a strong note and the momentum will continue throughout the year. With the crypto markets having some of the most favourable conditions, we are likely to see Bitcoin at $200,000 by the end of 2025. These market conditions also point towards the improving maturity of the crypto market getting ready for mainstream adoption.
(The author is the CEO and Co-founder of Mudrex, a global crypto investment platform)
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