The cryptocurrency industry is promised “a lot of small wins” in 2025. But which ones?
The year 2024 is remembered for at least two major wins for the coin niche. The first was the launch of spot ETFs in the US based on Bitcoin and Efirium, which attracted billions of dollars in net capital inflows. The second success was Donald Trump’s victory in the presidential election – after all, he actively supported the digital asset sphere during the election campaign. It looks like the new year will prove to be just as exciting.
What will happen to crypto in 2025
The prospects for the cryptocurrency market in the new year were commented on by Zach Pandl, Research Manager at Grayscale Investment Fund. He is now seeing interest in digital assets from pension and endowment fund managers, who have predominantly ignored the cryptocurrency sphere over the past decade.
Investors buying cryptocurrency
Because of this, Pandl expects a successful 2025 for the industry. Here’s his commentary, as quoted by Cointelegraph.
I expect dozens of small wins for the cryptocurrency sphere this year.
The expert specified that the industry in the coming months may receive more attention from large investors-institutionalists, adequate regulation of the sphere in the United States through the renewal of Congress, as well as the possible transformation of Bitcoin into a reserve asset of America.
With this in mind, thoughts of Bitcoin growing to $500,000 by 2030 are not “complete madness,” the analyst said. In addition, large fund managers are now slowly starting to show interest in digital assets. Pandl continues.
It has been easy for them to ignore this area, brush it off or put it aside over the past decade. However, they are now realising that behaving in this way will not work any further.
According to the expert, some investment portfolio managers are now already allocating 5 per cent of their total capital to crypto investments. And this is despite the fact that such companies are “at the stage of immersion” in the coin sphere.
Cryptocurrency investors
Sovereign wealth funds outside the US will also be investing in crypto in the coming months. Due to this, demand for Bitcoin and other popular cryptocurrencies should increase significantly. Pandl believes that private funds will be attracted to the decentralised finance category, real-world tokenised assets (RWAs) and artificial intelligence-based tokens.
Who is investing in cryptocurrencies
Galaxy Digital analysts believe that an increasing amount of venture capital will be channelled into US cryptocurrency startups. This will be primarily facilitated by the coming to power of Donald Trump, who promised to support the industry and even launched his own meme token TRUMP.
According to a fresh report, US crypto startups have received 46 per cent of the total investment from venture capital funds. The U.S. also leads in the number of deals, with 36 per cent of venture capital investment rounds. Singapore was second with 9 per cent, and the UK was third with 8 per cent.
Popular cryptocurrencies
Ryan McMillin, investment director at Merkle Tree Capital, an Australian crypto investment management company, shared his reaction to the situation. According to him, what is happening seems logical given the US leadership in the financial sector – and this is not even hindered by the Biden administration’s hostility towards crypto. Here’s a quote.
The US simply has more venture capitalists and limited partnerships. They’re also showing significant growth, 46 per cent for the fourth quarter. Which means much of that capital was invested with confidence in the success of the Trump administration.
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Well, after the inauguration of the newly elected president on 20 January, the activity of venture capital holders will prove even more compelling. He continues.
Changing from a hostile administration that orchestrated Operation Boost 2.0, used regulators as weapons and stripped cryptocurrency startups of bank support, to a pro-industry team that is pro-industry and well-versed in venture capital will be like changing day and night. The market hasn’t even begun to price it in.
As a reminder, cryptocurrency companies were routinely denied co-operation by major banks as part of Operation Boost 2.0, which was done at the behest of Biden administration officials.
Newly elected US President Donald Trump at the Bitcoin 2024 cryptocurrency conference
However, if Donald Trump makes cryptocurrency policy a national priority, then government agencies will be motivated to engage with the blockchain industry. And this will ensure its further development.
The expectations of crypto industry players once again show how important Trump's victory in the US presidential election turned out to be. Thanks to this, the niche of digital assets can finally get certainty, which will definitely affect the activity of investors. So for now, 2025 promises to be a great year for the coin sphere.
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