Five Cryptocurrency Predictions After Trump's Presidency

[TL；DR]:

Trump may drive Bitcoin to become a national reserve asset, supported by several states, reshaping its global status and market rules.
Cryptocurrency ETFs are expected to grow rapidly, attracting institutional investors, with market size potentially exceeding $200 billion by 2025.
Meme tokens are booming due to cultural influence and institutional interest, bringing vibrancy to the market.

Introduction

The cryptocurrency market in January 2025 is destined to be historic. On January 18, just days before his inauguration, President-elect Donald Trump launched his personal token, $TRUMP. Within 12 hours, its price surged 15,000%, with a market cap surpassing $4.8 billion and a fully diluted valuation hitting an astonishing $24.3 billion.

On January 20, shortly before Trump was sworn in as the 47th President of the United States at Capitol Hill in Washington, D.C., First Lady Melania Trump launched her own token, $MELANIA, which quickly reached a market cap of $2 billion. This rare “Presidential family token” phenomenon has sparked strong reactions across the global cryptocurrency market.

（Source：X）

During his campaign, Trump repeatedly emphasized his vision of transforming the U.S. into a global cryptocurrency innovation hub and proposed the bold idea of establishing a national Bitcoin reserve. His actions, from issuing personal tokens to highlighting digital financial innovation in his inaugural speech, demonstrate a strong commitment to advancing the cryptocurrency sector.

Now officially the 47th President of the United States, Trump’s decisions are poised to trigger global ripple effects. Based on his campaign rhetoric and the recent crypto activities of his family, we are optimistic about the 2025 cryptocurrency market. Here are five major predictions for the year ahead.

Bitcoin as a Sovereign Reserve Asset

Under Trump’s crypto-friendly administration, Bitcoin could undergo a monumental transformation. The Texas House of Representatives recently proposed a bill to accept Bitcoin for taxes, fees, and donations, aiming to build a strategic Bitcoin reserve. This reserve, held for at least five years, seeks to enhance the state’s fiscal stability and position Texas as a Bitcoin innovation leader. Nationwide discussions on establishing a national Bitcoin reserve are gaining momentum and are likely to accelerate in 2025.

Trump’s Support

At the Bitcoin2024 conference in July 2024, Trump proposed a national Bitcoin reserve plan, pledging “never to sell” government-held Bitcoin. He described this strategy as a long-term financial hedge for the United States.

State-Level Initiatives

The idea has garnered bipartisan support, with notable figures such as California Democratic Congressman Ro Khanna and Wyoming Republican Senator Cynthia Lummis advocating for Bitcoin reserves. Lummis even proposed a bill to purchase 1 million Bitcoin over five years to address the national debt crisis. Several states, including Pennsylvania and Ohio, are exploring similar initiatives, laying the groundwork for a national Bitcoin reserve.

When the world’s largest economy begins holding Bitcoin as a reserve asset, the demonstration effect will be profound. Emerging economies may follow suit, using Bitcoin to hedge against dollar dominance and prepare for the digital economy. Bitcoin’s role in international trade settlements could also expand, particularly in geopolitically sensitive regions.

Analysts predict that by the end of 2025, sovereign nations could hold 8%-12% of Bitcoin’s circulating supply. Such large-scale institutional holdings would fundamentally alter Bitcoin’s supply-demand dynamics, possibly leading to a new pricing mechanism. More importantly, this shift would solidify Bitcoin’s role as a strategic reserve asset, enhancing its value storage capabilities.

Cryptocurrency ETFs to Thrive

Bitcoin ETFs have demonstrated strong institutional interest in digital assets. BlackRock’s IBIT broke records by reaching $40 billion in assets under management within 200 days. In a more open regulatory environment under Trump’s administration, this momentum is expected to grow. By 2025, the total market size of crypto ETFs could surpass $200 billion, signaling a new era for traditional financial institutions entering the crypto space.

（Source：Apollo）

Regulatory Improvements

With evolving regulations, more types of crypto ETFs are likely to gain approval, driving market development. In 2024, the U.S. Securities and Exchange Commission (SEC) approved spot Bitcoin and Ethereum ETFs, reflecting a friendlier stance toward crypto assets. This shift could pave the way for other crypto ETF applications. Additionally, Trump’s administration is expected to adopt more flexible and innovative regulatory policies, further boosting the crypto market.

Market Demand and Institutional Participation

As Bitcoin and Ethereum gain wider recognition, demand for emerging crypto asset ETFs (e.g., SOL, XRP) is rising. Institutional investors like BlackRock are increasing their investments in these assets, demonstrating strong market trust. Advancements in technology and infrastructure make trading and storage safer and more transparent, bolstering regulatory confidence in approving ETFs.

Traditional financial institutions bring risk management expertise, market pricing mechanisms, and operational experience, fostering a more regulated and mature crypto market. We may see innovative ETF products, such as cross-chain asset ETFs and DeFi yield ETFs, emerge.

Overall, crypto ETFs provide investors with safer, compliant investment options and may lead the market into a new growth phase. With more financial tools launching and regulatory policies relaxing, the future of cryptocurrency warrants close attention.

Stablecoins to Revolutionize Global Payments

Under a more open policy environment, stablecoins could achieve transformative growth in global payments. Traditional international payments take 2-3 business days and incur high costs. In contrast, stablecoins settle transactions within minutes at a fraction of the cost, thanks to their decentralized nature and blockchain technology.

（Source：CoinGecko）

Cost Reduction and Efficiency

Stablecoins significantly lower cross-border payment costs, averaging 0.5%-3.0%, compared to traditional s at 6.35%. Settlement speeds range from a few minutes for stablecoins to 2-5 business days for traditional methods. This high-efficiency, low-cost model is ideal for global commerce. By 2030, cross-border capital flows are expected to reach $76 trillion, providing a vast market for stablecoin adoption.

Expanding Use Cases

Stablecoins are increasingly used in personal transfers (P2P), business transactions (B2B), and international trade. They streamline real-time clearing in supply chain finance, boosting efficiency. As global manufacturing and cross-border trade grow, stablecoins will underpin a high-efficiency, low-cost global supply chain.

Innovation and Financial Transformation

Smart contracts enable automated transaction validation, clearing, and settlement, enhancing efficiency and security. As stablecoins gain wider acceptance, decentralized cross-border payments are accelerating. Stablecoins could replace traditional networks like SWIFT, Visa, and Mastercard, decentralizing and diversifying global payment s.

Looking ahead to 2025, stablecoins will play a pivotal role in reshaping global payments with their cost-efficiency, technical innovation, and disruption of traditional finance. With regulatory improvements and rising market demand, their future looks bright.

RWA Tokenization to Transform Assets

Real-world asset (RWA) tokenization is poised for explosive growth under supportive innovation policies. This approach lowers investment barriers and enhances liquidity and pricing efficiency in traditional assets.

Market Demand and Digital Transformation

As global capital markets digitize, RWA bridges traditional finance and blockchain, meeting investors’ demand for diverse assets. By 2030, the RWA market could reach $16 trillion. Tokenization offers small investors access to real estate and other traditional assets while helping asset owners manage portfolios flexibly. RWA also advances supply chain finance by tokenizing accounts receivable, improving SME financing.
Technological Advancements

Blockchain maturity provides efficient, secure solutions for asset tokenization, enhancing transparency. Smart contracts enable automated, secure asset trading, increasing RWA liquidity. DeFi and decentralization accelerate RWA market growth, attracting investors with transparency and accessibility.

Institutional and Policy Support

Major institutions like BlackRock and Goldman Sachs are investing in RWA, boosting market confidence. Regulatory frameworks like the EU’s MiCA are removing barriers, fostering compliance and adoption. Institutional participation and supportive policies will further popularize RWA.

Meme Tokens Enter a New Phase

The Trump family’s token launches have drawn unprecedented attention and legitimacy to Meme tokens. Once considered niche, Meme tokens are set for standardized growth thanks to favorable policies and innovations.

Internet Culture and Social Dynamics

Meme tokens often stem from online culture and humor, attracting younger investors. They are more than financial tools—they are social identity symbols. Meme tokens leverage social media and online communities for viral growth, creating vibrant ecos.

Economic Environment and Institutional Interest

In a low-yield traditional investment climate, high-risk assets like Meme tokens attract funds. Venture capital and traditional institutions are showing interest in Meme tokens and infrastructure, increasing market credibility.

Platforms and Fair Distribution

New trading platforms lower entry barriers, allowing users to invest in crypto via Apple Pay, PayPal, etc. Meme tokens often adopt fair distribution models without pre-mining or team allocations, fostering community cohesion and liquidity.

Conclusion

With Trump’s strong push, cryptocurrencies are moving from the fringes to the mainstream. From Bitcoin as a reserve asset to stablecoin adoption in payments, the market offers more opportunities for ordinary investors. Whether you are interested in Bitcoin’s long-term value or short-term gains through ETFs or Meme tokens, 2025 is a pivotal year.