Everyone is looking forward to 2025 for different reasons. For some, this is the year to finally get their crypto dreams off the ground.
For others, it’s the perfect opportunity to re-strategize, diversify their investments, and potentially make big gains to achieve those big dreams.
Whatever the case, the crypto market holds lots of promises for the new year. Let’s look at some of the major milestones we could see from Bitcoin and the broader crypto market in 2025.
Bitcoin to Reach $250,000?
After reaching an all-time high price of over $108,000 in December 2024, many industry experts have Bitcoin price predictions between $200,000 and $250,000 by 2025. That’s at least double the highest price Bitcoin reached last year.
According to Tomisin Olatunji, a crypto analyst at Quidax, several factors will play significant roles in shaping the crypto landscape this year.
These include Donald Trump’s return to the White House, marking a potential shift in U.S. economic and regulatory policies, which could influence global markets, including cryptocurrency.
The anticipated approval of more crypto exchange-traded funds (ETFs) is also expected to drive mainstream adoption by providing easier access to digital assets for retail and institutional investors.
Stronger institutional interest in Bitcoin, fueled by its growing recognition as a hedge against inflation and a store of value, will further solidify its position in the financial ecosystem and contribute to market growth.
A New Altcoin Season
While Bitcoin did pretty well in 2024, altcoins also had a great year. Altcoins like XRP, Hedera (HBAR), and Stellar (XLM) outshined Bitcoin’s gains during the year. But some analysts have predicted that the real altcoin season is coming in 2025.
An altcoin season happens when the broader altcoin market increases and Bitcoin dominance reduces. The period often always follows a season of Bitcoin highs, then altcoin take over when the Bitcoin price falls.
They also believe AI and decentralized finance (DeFi)-related altcoins will lead the charge during the next altcoin season.
More Crypto ETFs
Following the approval of spot Bitcoin and spot Ether exchange-traded funds (ETFs) in 2024, more asset management companies have been pushing for the approval of more spot crypto ETFs.
According to Bloomberg, ETFs will be hot in 2025, and many ETF companies are competing with their filings pending approvals by the US Securities and Exchange Commission (SEC).
Some of the cryptocurrencies that could see their ETFs launched are Litecoin (LTC), Solana (SOL) and XRP. Some analysts say we may also see Bitcoin ETFs expand beyond the spot market as new ETFs with Bitcoin options will be created in 2025.
Friendlier Crypto Regulations
There was decent progress in terms of crypto regulations around the world in 2024. For instance, the Nigeria SEC paved the way for a potential broader crypto regulation in the country by issuing Quidax a provisional licence.
Similarly, South Africa approved 248 crypto asset service provider (CASP) licences in December 2024. Don’t forget that countries like El Salvador and the Central African Republic (CAR) already consider Bitcoin legal.
Looking ahead in 2025, many analysts believe that the crypto market will finally get the regulatory clarity it needs, starting from the US.
After appointing David Sacks as his crypto and artificial intelligence (AI) czar, Donald Trump said “He will work on a legal framework so the crypto industry has the clarity it has been asking for.” If he stays true to his words, we may be getting friendlier crypto regulations soon, especially since Trump and Sacks are pro-crypto. Olatunji believes this guarantees opportunities for Africa and Nigeria. “Crypto provides Nigerians with a unique opportunity to participate in the global economy,” he stated. “Crypto offers people an opportunity to make money, and as the market evolves and activities increase, we anticipate this momentum will positively impact the Nigerian economy, driving innovation, job creation, and financial inclusion.”
Strategic Bitcoin Reserves
There have been lots of conversations around a potential strategic Bitcoin reserve in the US this year. But it’s not only the American country that’s considering buying and storing Bitcoin in its government coffers.
Countries like Switzerland, Germany, Hong Kong, Russia, Brazil, and Poland are taking steps to explore storing Bitcoin as a strategic asset. If they pull it off, they’ll follow in the footsteps of countries like El Salvador, Finland, and Georgia, which already have decent chunks of Bitcoin reserves.
More Interest Rate Cuts
The US Federal Reserve introduced a 0.25% interest rate reduction in December 2024. At the time, it was the third consecutive interest rate cut. But there are reports of further rate reductions in 2025.
If these are anything to go by, the US Fed will likely reduce interest rates a couple more times down the year.
Countries like the UK are also likely to lower interest rates due to high inflation rates. Lower interest rates will cause more people to switch from regular financial products to riskier investment options like cryptocurrencies because of their potentially higher gains.
Final Thoughts
There’s a huge expectation for the crypto industry this year. Though the year has started off well with coin prices rediscovering bullish trends, there’s more to come as the year goes by.
As a trader or investor, you want to position yourself properly and be ready for the market’s major moves. May the markets move in your favour.
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