2025 is shaping up to be a crucial year for the future of cryptocurrencies. After a 2024 marked by strong bullish momentum, the arrival of Donald Trump to the presidency of the United States generated a climate of optimism in the market, with expectations that the government would promulgate favorable regulations for digital assets. This could drive not only prices but also greater institutional adoption.
A recent report from Fidelity Digital Assets highlights that the increase in institutional adoption is, possibly, the main growth engine of the cryptoasset market. According to Matt Hogan, an analyst at the firm, the trend that began with the approval of spot bitcoin (BTC) exchange-traded funds (ETFs) in early 2024 could accelerate in 2025. Hogan anticipates that the significant change will come when countries decide to incorporate bitcoin in its strategic reserves.
“We predict that in 2025 more nation-states, central banks, sovereign wealth funds and government treasuries will establish strategic positions in bitcoin. These institutions could be inspired by the cases of Bhutan and El Salvador, which have obtained substantial benefits in a relatively short period,” he explains. the analyst.
Which are the countries with the highest adoption of cryptocurrencies
Currently, the main holders of bitcoin include the United States ($20 billion), China ($19.2 billion), the United Kingdom ($6.2 billion), Ukraine ($4.7 billion) , Bhutan (US$1.2 billion) and El Salvador (US$604 million). However, Much of this exposure comes from asset seizures or recoveries related to illicit activities, not long-term strategic decisions.
“Faced with problems such as inflation, currency devaluation and growing fiscal deficits, Not including bitcoin in reserves could be riskier for countries than doing so“Adds Hogan.
Trump’s plan to establish a bitcoin strategic reserve could be the catalyst for institutional adoption wider. Although this proposal was central to his campaign, it is still unclear if it will be implemented after his inauguration on January 20.
Furthermore, Hogan mentions that the approval of the Bitcoin Act 2024, presented by Senator Cynthia Lummis, could trigger a “political and financial game” that would lead other nations to accumulate bitcoin covertly, to avoid inflating the price due to the increase in buyers.
Strong growth expected in cryptocurrency investments
On the other hand, Hogan foresees a further boom in investment products related to digital assets. He highlights the initial success of bitcoin and ethereum (ETH) ETFs in spot markets and anticipates that in 2025 we will see growth in both passive and active investment products in the sector.
It also highlights that tokenization will be a central theme this year, with the value of assets registered on the blockchain doubling from $14 billion to $30 billion. “Although tokenization is perceived as an emerging trend, its impact on financial services is only beginning to manifest,” he comments.
Firms like Steno Research share this optimism, predicting that the Bitcoin price could reach US$150,000 in 2025, while they expect better performance from ETH and other altcoins. Bitwise, for its part, anticipates a record year for IPOs of large cryptocurrency companies.
In summary, Hogan concludes that 2025 could usher in a new era for digital assetswith a potential impact that will span multiple sectors, technologies and even state economies. For investors, the key will be to decide to what extent to get involved in this global transformation.
Source: Ambito
