The cryptocurrency market experienced a historic year in 2024, with significant growth driven by economic, political, and technology adoption factors. He bitcoin surpassed $100,000 for the first time, and the total capitalization of the crypto market reached 3.4 trillion dollarsalmost doubling its size compared to the previous year.
The impact of the victory of donald trump in the US elections and the launch of spot bitcoin ETFs have been key elements to this rally.
Next, Citi analysts identify six key factors that will determine the trajectory of cryptocurrencies in 2025:
1. Favorable macroeconomic context
The start of 2025 presents a positive outlook for cryptocurrencies thanks to global economic growth and accommodative monetary policies following rate cuts in 2024. However, experts warn that volatility in equity markets and political uncertainty in the United States The United States could change this scenario in the medium term.
2. Growing entry into cryptocurrency ETFs
The bitcoin and ethereum ETFlaunched in 2024 following SEC approval, have been a key driver of market growth. These funds facilitated the access of institutional and retail investors to cryptocurrencies, attracting $36.4 billion in bitcoin flows and 2.4 billion in ethereum. Analysts predict this trend will continue into 2025, cementing the role of ETFs as market catalysts.
3. Inclusion in diversified investment portfolios
Bitcoin and other cryptocurrencies are gaining ground as assets within multi-asset portfolios. Citi analysts highlight that while these remain high-risk and volatile investments, the recent rally has demonstrated their ability to add value to portfolios, especially with well-balanced allocations. To justify higher allocations, cryptocurrencies will need to maintain higher returns than the stock market.
4. Rise of stablecoins
The adoption of stablecoins, cryptocurrencies designed to maintain a stable price, continues to grow. These assets, backed by fiat currencies like the dollar, are expanding their reach in decentralized finance (DeFi) and could compete with leaders like Tether. Furthermore, associations such as Circle and Binance They promise to diversify the market and reduce systemic risks, favoring a healthier environment for the development of the sector.
5. Greater global adoption
Cryptocurrency adoption is expanding rapidly in regions affected by currency issues, such as Türkiye, Argentina, and Venezuela. In addition, the increase in activity in traditional markets and the integration of blockchain technologies in various industries could consolidate this trend in 2025. Analysts point out that mass adoption will be key to sustaining long-term market growth.
6. Changes in regulation
With the arrival of Donald Trump to the presidency of the United States, a change in the regulatory approach towards cryptocurrencies is expected. The appointment of figures such as Paul Atkins, known for his support of crypto assets, could mean more favorable and legislation-based regulation. This environment could remove barriers to market growth and encourage greater global adoption.
Outlook for cryptocurrencies in 2025
The crypto market faces a promising but challenging outlook in 2025. The combination of macroeconomic factors, advances in financial products such as ETFs, and growing global adoption will be decisive in maintaining its bullish streak. However, analysts warn that market volatility and regulatory risks will continue to be elements to monitor closely.
Source: Ambito
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