After Trump takes office, who will be the primary adopter of Cryptocurrency in 2025?

Author: Zoltan Vardai

Compiled by: Baishui, Golden Finance

Due to the increasingly clear regulation and the soaring valuation of cryptocurrencies, the global cryptocurrency industry is expected to gain mainstream and institutional recognition again in 2025.

In 2024, Bitcoin reached a new all-time high. More than a month after Donald Trump won the US presidential election, the price of Bitcoin soared to a historic high of $108,300 on December 17th. The optimism of cryptocurrency investors is on the rise.

Industry experts pointed out that with clearer expectations for the Trump administration's regulation, the cryptocurrency industry may usher in another milestone year, including more institutions adopting it and a record number of global cryptocurrency investors.

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

In 2024, the crypto industry experienced significant regulatory developments in some of the largest jurisdictions.

In Europe, the Markets in Crypto-Assets Regulation (MiCA) - the world's first comprehensive crypto regulatory framework - fully came into effect on December 30, providing comprehensive guidance for crypto service providers.

In Asia, Singapore is becoming the next cryptocurrency center with its 'risk-adjusted' regulation, helping the country to double the number of digital asset license issued annually by 2024.

Singapore has 1,600 blockchain patents, 2,433 related industry jobs, and 81 cryptocurrency exchanges. These numbers are remarkable for a country with a population of less than 6 million.

Jonathan Levin, CEO of Chainalysis, said that these global regulatory developments will see more retail and institutional investors adopting them.

Levin said, "We can expect an increase in the adoption rate of institutions and retail investors next year, especially as these regulations bring greater transparency to the industry."

He added that these new regulations will also enhance industry trust, market integrity, and consumer protection, making the industry more attractive to retail investors.

Levin said that regulatory transparency will drive the number of daily cryptocurrency users to an all-time high and stimulate the growth of institutional products such as exchange-traded funds (ETFs).

According to the 2024 cryptocurrency ownership report from Triple-A, as of July 12, it is estimated that there are 560 million cryptocurrency holders, accounting for 6.8% of the global population.

There are a total of 560 million cryptocurrency holders worldwide. Source: triple-a

Pavlo Denysiuk, CEO of the encrypted payment company Lunu, said that based on the current user growth, the number of cryptocurrency holders may double in the next two years.

Denysiuk said in the panel discussion at NFT Fest 2024, 'This is where we get more adoption in various places and in terms of payments.'

ETF and government BTC reserve plans will drive institutional adoption.

The trading of BTC exchange-traded funds in the U.S. spot Bitcoin exchange has made it easier for traditional financial institutions to access BTC investments, bringing about increased institutional adoption.

Bitcoin ETF has approached the $110 billion mark in less than a year since its launch, supporting analysts' predictions of a peak of $200,000 for the Bitcoin cycle in 2025.

Chainalysis CEO Levin said that this development will pave the way for more and more institutions to accept Bitcoin as an asset class.

This is likely to translate into sustained institutional interest and efforts by financial institutions and cryptocurrency companies to establish the infrastructure and flexibility needed to support investor demand.

As an important symbol of the popularization of Bitcoin, the status of Bitcoin as a savings technology is increasing in the United States, thanks to the Bitcoin Bill advocated by Senator Cynthia Lummis of Wyoming, which proposes the establishment of a strategic Bitcoin reserve.

Lummis Bitcoin bill. Source: Lummis.senate.gov

Fideum co-founder and CEO Anastasija Plotnikova said that the Bitcoin Reserve proposal is gaining strong support due to the re-election of US President Donald Trump in the November 2024 election and the Republican Party's majority in the Senate.

Adam Back, co-founder and CEO of Blockstream, inventor of Hashcash, and one of the most well-known cryptographers in the industry, said that if the 'Bitcoin Act' is accepted by US lawmakers, the price of Bitcoin could eventually exceed $1 million.

Cryptocurrencies in low-income countries are expected to continue to grow

According to Chainalysis' Cryptocurrency Geographic Report released in October 2024, cryptocurrency activity increased and reached its peak at the high point of the bull market in 2021.

The Chainalysis Global Index, which measures the total value of global encryption activities, rose to a new high of 0.75 or above in the first quarter of 2024.

Global index measuring the global value of cryptocurrency activities. Source: Chainalysis

The report further states that while the adoption of cryptocurrencies in 2023 is mainly driven by middle- and low-income countries, the peak in 2024 is attributed to the increase in cryptocurrency activities in countries of all income levels, with a decrease in cryptocurrency activities in high-income countries at the beginning of 2024.

Levin pointed out that the increase in global activity is mainly attributed to the continuous increase in the use cases of stablecoins in the real world and the first appearance of the US Bitcoin ETF:

"There are many factors driving this trend, from the launch of Bitcoin ETF in the United States to stablecoin support for real-world use cases in low- and middle-income countries, as well as a significant increase in DeFi activities in sub-Saharan Africa, Latin America, and Eastern Europe.

2024 global cryptocurrency adoption index. Source: Chainalysis

India, Nigeria, and Indonesia, among other low- and middle-income countries, are leading the way in adoption, with India ranking first in the Chainalysis Global Cryptocurrency Adoption Index.

In Latin America, El Salvador adopted Bitcoin as a legal currency on September 7, 2021, which has brought over $31 million in profits to the country in the past three years.

Despite making a profit of $31 million, President Nayib Bukele's decision has received widespread criticism after Bitcoin fell from its all-time high of $69,000 in November 2021 following the closure of the FTX exchange. During the bear market, Bitcoin plummeted to $16,000, resulting in a significant decrease in El Salvador's Bitcoin holdings.

Anndy Lian, a blockchain expert, said that El Salvador's decision to adopt Bitcoin is an important step towards Bitcoin's increasing integration into the global financial system.

Lian said that similar government measures could encourage other countries to adopt Bitcoin.

As more and more countries consider this path, we may see a gradual redefinition of 'safe haven' assets. If Bitcoin becomes the primary reserve currency of nations, it could fundamentally change the global financial landscape and promote a more decentralized and digitized approach to economic stability.

BTC and gold, 1-year chart. Source: Cointelegraph/TradingView

Bitcoin may even become the next reserve asset after gold. TradingView data shows that in the past year, Bitcoin has risen by more than 131%, while the price of gold has risen by about 30%.

Cryptocurrency investors' optimism for 2025 remains high, especially on January 6, two weeks before Trump's inauguration on January 20, after Bitcoin reclaimed $100,000. This is seen as a potential catalyst for cryptocurrency prices due to clearer regulations.

The upward trend of Bitcoin in 2025 is expected to attract more investors' attention to the cryptocurrency industry, with price predictions ranging from $160,000 to over $180,000.

(The above content is authorized and excerpted by PANews, the source link | Source: Jinse Finance)

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After Trump takes office, who will be the primary adopter of cryptocurrency in 2025? This article was first published in "Blockbeast".