Crypto Assets industry is expected to gain mainstream recognition again in 2025

As the regulatory environment becomes increasingly clear and the valuation of Crypto Assets soars, the global Crypto Assets industry is expected to regain favor from mainstream and institutional investors by 2025.

In 2024, a historical new high was set, with the price of Bitcoin climbing to a historical peak of $108,300 on December 17, more than a month after the results of the U.S. presidential election were revealed. The optimism among Crypto Assets investors is on the rise.

Industry experts point out that due to people's clearer expectations for new government regulatory policies, the Crypto Assets industry may welcome another milestone year, including more institutional participation and a new high in the number of global Crypto Assets investors.

Regulatory clarity will drive a record high in the number of Crypto Assets investors.

In 2024, the crypto industry has experienced significant regulatory progress in some major jurisdictions.

In Europe, the "Crypto Assets Market Regulation Act" ( MiCA ) — the world's first comprehensive encryption regulatory framework — came into full effect on December 30, providing comprehensive guidelines for crypto service providers.

In Asia, Singapore is emerging as a new crypto center with its "risk-adjusted" regulatory approach, which has helped the country double the number of digital asset licenses issued annually by 2024.

For a country with a population of less than 6 million, Singapore has 1,600 blockchain patents, 2,433 industry-related job positions, and 81 Crypto Assets exchanges, which are impressive figures.

The CEO of a data analysis company stated that these global regulatory developments will attract more retail and institutional investors to participate. He noted that the adoption rate among institutional and retail investors is expected to increase 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, "which will make the industry more attractive to retail investors."

He believes that regulatory transparency will drive the daily number of Crypto Assets users to a historic high and stimulate the growth of institutional products such as exchange-traded funds ( ETF ).

According to a report by a research institution in July 2024, it is estimated that there are 560 million Crypto Assets holders worldwide, accounting for 6.8% of the global population.

The CEO of a crypto payment company stated that, based on the current user growth trend, the number of Crypto Assets holders could double in the next two years. He pointed out during a panel discussion at an industry conference: "This will drive broader adoption in various sectors as well as in payments."

ETF and government Bitcoin reserve plans will drive institutional adoption

The U.S. spot Bitcoin exchange-traded fund has brought more institutional participation due to making it easier for traditional financial institutions to access Bitcoin investments.

The Bitcoin ETF approached a scale of nearly $110 billion in less than a year after its launch, supporting analysts' predictions of a peak of $200,000 for Bitcoin in the 2025 cycle.

The CEO of a data analytics company stated that this trend will pave the way for institutions to increasingly accept Bitcoin as an asset class: "This is likely to translate into sustained institutional interest, as well as the efforts made by financial institutions and Crypto Assets companies to build the infrastructure and resilience needed to support investor demand."

As an important symbol of Bitcoin's popularity, Bitcoin's status as a savings technology is increasingly rising in the United States, thanks to a certain senator's advocacy of the "Bitcoin Act," which proposes the establishment of a strategic Bitcoin reserve.

The co-founder and CEO of a certain Crypto Assets company stated that due to the newly elected president of the United States winning in the November 2024 election and the Republican Party holding a majority in the Senate, the Bitcoin reserve proposal is gaining strong support.

The CEO of a well-known crypto assets company stated that if the "Bitcoin Act" is accepted by U.S. lawmakers, the price of Bitcoin could eventually exceed $1 million.

The adoption of Crypto Assets in low-income countries is expected to continue growing

According to a report released by a research institution in October 2024, cryptocurrency activity increased in 2024 and reached the peak of the 2021 bull market.

The report states that the global index measuring the total value of global Crypto Assets activity rose to a new high of over 0.75 in the first quarter of 2024.

The report added that while the adoption of Crypto Assets in 2023 was mainly driven by low- and middle-income countries, the peak in 2024 is attributed to increased crypto activity in countries across all income levels, while high-income countries saw a decrease in crypto activity in early 2024.

The CEO of a certain analysis firm pointed out that the increase in global activities is mainly attributed to the continuous increase in the use cases of stablecoins in the real world, as well as the debut of the Bitcoin ETF in the United States: "There are many factors driving this trend, from the launch of the Bitcoin ETF in the United States to the support of stablecoins for low-income and lower-middle-income countries in real-world use cases, as well as a significant increase in DeFi activities in Sub-Saharan Africa, Latin America, and Eastern Europe."

India, Nigeria, and Indonesia, among other middle-income countries, are leading in adoption, with India ranking first in a global Crypto Assets adoption index.

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

Despite making a profit of $31 million, Bitcoin has fallen from its all-time high of $69,000 in November 2021 after the collapse of a certain exchange, and the president's decision has faced widespread criticism. During the bear market, after Bitcoin dropped to $16,000, El Salvador's Bitcoin holdings saw a significant decline.

A certain intergovernmental blockchain expert stated that El Salvador's decision to adopt Bitcoin is an important step in the increasing integration of Bitcoin into the global financial system. He believes that similar governmental initiatives may encourage other countries to adopt Bitcoin: "As more and more countries consider this path, we may see a gradual redefinition of 'safe' reserve assets. If Bitcoin becomes the primary currency of national reserves, it could fundamentally change the global financial landscape, promoting more decentralized and digitized economic stability methods."

Bitcoin could even become the next reserve asset after gold. Data shows that Bitcoin has increased by over 131% in the past year, while gold prices have risen by about 30%.

Crypto Assets investors remain very optimistic about 2025, especially on January 6, just two weeks before the new president's inauguration on January 20, after Bitcoin reclaimed $100,000 — this is seen as a potential catalyst for Crypto Assets prices due to clearer regulations.

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