The cryptocurrency industry is expected to regain mainstream recognition by 2025

As the regulatory environment becomes increasingly clear and the valuation of Crypto Assets skyrockets, the global Crypto Assets industry is expected to regain mainstream and institutional favor by 2025.

With an all-time high in 2024, the price of Bitcoin broke through the $108,300 mark on December 17, reaching an all-time high. This landmark breakthrough comes more than a month after the results of the US presidential election were announced, and the optimism of crypto investors continues to rise.

Industry experts point out that with the new government's regulatory policy becoming clearer, the cryptocurrency industry is likely to usher in another important year of development. This includes more institutional participation and a record number of cryptocurrency investors worldwide.

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Clear regulations will drive the number of investors to a new high.

In 2024, the crypto industry has undergone significant regulatory changes in some major markets.

In Europe, the Cryptoasset Market Regulation Act (MiCA), the world's first comprehensive crypto regulatory framework, came into full force on December 30, providing comprehensive guidelines for crypto service providers.

In Asia, Singapore is emerging as the new crypto hub with its "risk-adjusted" regulatory strategy. Thanks to this policy, the country will double the number of digital asset licenses issued annually in 2024.

Currently, Singapore has 1,600 blockchain patents, 2,433 related job positions, and 81 Crypto Assets exchanges. These figures are impressive for a country with a population of less than 6 million.

The CEO of a data analysis company stated that these global regulatory developments will attract more retail and institutional investors into the market. He expects that participation from institutional and retail investors will increase next year, especially in the context of these new regulations bringing greater transparency to the industry.

He added that the new regulations will also strengthen industry trust, market integrity and consumer protection, "which will make the sector more attractive to retail investors". At the same time, regulatory clarity will drive a record number of daily crypto users and spur the growth of institutional products such as exchange-traded funds (ETFs).

According to a report by a research organization on July 12, 2024, there are approximately 560 million Crypto Assets holders worldwide, accounting for 6.8% of the global population.

According to the CEO of a crypto payment company, the number of cryptocurrency holders could double in the next two years based on current user growth trends. "This will drive wider adoption in various areas, especially in payments," he noted at an industry conference. "

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ETF and government reserve plans will drive institutional adoption

The launch of the U.S. spot bitcoin exchange-traded fund has made it easier for traditional financial institutions to participate in bitcoin investments, which has led to more institutional adoption.

Less than a year after its launch, the Bitcoin ETF is approaching $110 billion, supporting analysts' predictions that the price of Bitcoin could reach $200,000 in 2025.

Industry experts believe that this trend will pave the way for institutions to increasingly embrace Bitcoin as an asset class. "This is likely to translate into continued institutional interest and efforts by financial institutions and crypto businesses to build the infrastructure and resilience needed to support investor demand," he said. "

As an important indicator of Bitcoin's popularity, Bitcoin's status as a savings technology is growing in the United States. This is thanks in part to the Bitcoin Bill advocated by a certain senator, which proposes the creation of a strategic Bitcoin reserve.

According to the co-founder and CEO of a crypto payments company, the Bitcoin reserve proposal is gaining strong support due to the results of the November 2024 U.S. elections and the Republican majority in the Senate.

A well-known cryptographer in the industry pointed out that if the Bitcoin Act is accepted by US legislators, the price of bitcoin could eventually exceed $1 million.

Cryptocurrency adoption continues to grow in low-income countries

According to a report released by a data analysis company in October 2024, global Crypto Assets activity increased and reached the levels of the 2021 bull market.

According to the report, the global index, which measures the total value of global crypto activity, rose to a new high above 0.75 in the first quarter of 2024. While crypto adoption in 2023 was largely driven by low- and middle-income countries, the highs in 2024 were attributed to increased crypto activity in countries of all income levels, while high-income countries saw a decrease in crypto activity in early 2024.

Experts note that the increase in global activity is mainly attributed to the increasing use cases of stablecoins in the real world and the debut of the Bitcoin ETF in the United States. "There are many factors driving this trend, from the launch of Bitcoin ETFs in the U.S. to stablecoins supporting real-world use cases in low- and lower-middle-income countries, as well as a significant increase in DeFi activity in Sub-Saharan Africa, Latin America and Eastern Europe," he said. "

Low- and middle-income countries such as India, Nigeria, and Indonesia are leading the adoption trend, with India ranking first in the Global Crypto Adoption Index.

In Latin America, El Salvador adopted Bitcoin as legal tender on September 7, 2021, which brought the country more than $31 million in profits in its first three years. Despite the significant gains, the president's decision was widely criticized after the collapse of an exchange that saw the price of bitcoin fall sharply from its all-time high of $69,000 in November 2021.

A government blockchain expert stated that El Salvador's decision to adopt Bitcoin is an important step in the increasing integration of Bitcoin into the global financial system. He believes that similar government initiatives may promote the adoption of Bitcoin by other countries: "As more and more countries consider this path, we may see a gradual redefinition of 'safe' reserve assets. If Bitcoin becomes the primary currency of national reserves, it could fundamentally change the global financial landscape, driving more decentralized and digitized approaches to economic stability."

The data shows that over the past year, Bitcoin has risen by more than 131%, while gold has risen by about 30%. This suggests that Bitcoin has the potential to become the next reserve asset after gold.

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Crypto investors remain optimistic about the outlook for 2025, especially after Bitcoin re-crossed the $100,000 mark on January 6. This is seen as a potential catalyst for cryptocurrency prices due to a clearer regulatory environment.

Insiders expect that the surge of Bitcoin in 2025 will attract more investors' attention to the Crypto Assets industry, with price predictions ranging from $160,000 to over $180,000.

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