What does 2025 have in store for crypto and digital assets?

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The year 2024 was an important turning point for the cryptocurrency industry. Bitcoin (BTC) exchange-traded funds came into the spotlight earlier in the year, underlining Bitcoin’s resilience and cementing its position as a permanent fixture in the global financial landscape.

Following the initial post-ETF rally, the market has moved sideways as the industry copes with challenges, including what many describe as a “bank withdrawal” by some U.S. regulators. These hurdles have highlighted the growing woes of a nascent industry still struggling for widespread acceptance and integration.

The US Presidential elections marked the second half of the year and cryptocurrency played a significant role in political discourse. As Donald Trump prepares to take office in January, his administration is preparing to take a very different stance on digital assets. Widely regarded as the “Crypto President”, Trump’s pro-blockchain perspective marks a change of pace from the Biden Administration.

Paul Atkins’ appointment as head of the SEC is a testament to this shift, paving the way for a regulatory environment more attuned to the transformative potential of blockchain technology. Against this backdrop, Bitcoin has reached a historic milestone by surpassing the $100,000 price threshold, a powerful symbol of the industry’s increasing maturity and global importance.

Crypto adoption: A steepening curve

In the 15 years since Bitcoin’s inception in 2009, one undeniable truth has emerged: Blockchain technology has revolutionized and continues to reshape business models across a variety of industries. From finance and gaming to supply chain and social media, blockchain’s ability to deliver faster, more cost-effective and more secure processes is driving transformative change. Although blockchain technology predated Bitcoin, its widespread adoption accelerated with the rise of cryptocurrencies.

Will there be more crypto users in 2025? All indications are that the answer is a resounding yes. The adoption curve, as measured by active crypto wallets, is rising sharply, outpacing even the rapid growth of internet users in the early 2000s. As the challenges of the dot-com crash are echoed in crypto market downturns in 2022 and 2023, the parallels are striking. However, just as the internet emerged stronger after the crash, the crypto ecosystem is now poised for further expansion and innovation.

Crypto adoption is multifaceted and covers use cases that go far beyond speculative trading. Below are a few areas where we can expect technology to continue to make an impact:

Application creation: Developers and technologists are acquiring crypto assets to use blockchain protocols and enable the creation of decentralized applications. These applications are already enhancing real-world experiences, especially in gaming, where new games are leveraging blockchain to allow players to earn coins and transfer value seamlessly between games. Investment opportunities: Crypto assets are becoming an integral part of diversified investment portfolios. While a core group of adopters have been “HODLing” for years, retail and institutional interest is growing with the introduction of regulated exchange-traded funds. These ETFs, tied to underlying assets like Bitcoin and Ethereum (ETH), offer investors a more accessible way to engage with the crypto market. The pipeline for additional ETFs is growing and investors’ options are expanding. Treasury management: Companies are also exploring the potential of crypto; Companies like MicroStrategy use Bitcoin as part of their treasury management strategies. All countries, as well as major players such as Microsoft and Amazon, are considering similar moves and recognize Bitcoin’s utility as a long-term store of value. Cross-border transactions: Stablecoins are revolutionizing global remittances, allowing users, especially in regions like Asia, to send money internationally with minimal fees and near-instantaneous processing times.

Whether through decentralized applications, institutional investments in crypto ETFs, or ordinary users leveraging stablecoins for payments, the crypto ecosystem will expand dramatically in 2025. The transformative power of blockchain is not only reshaping industries, it is also encouraging greater financial inclusion and creating new opportunities. innovation.

As we move to the next phase, one thing is clear: the blockchain and crypto world is no longer a niche; A growing force shaping the future of technology and finance.

Good companies prevail in difficult times

Just a few years ago, headlines frequently associated cryptocurrencies with illegal activities; this perception was exacerbated by high-profile incidents, including the largest fraud in financial history. But similar to the dot-com crash, where companies like Amazon and eBay grew stronger, the cryptocurrency industry has shown its resilience and capacity to evolve.

Latest research from Chainalytics highlights significant progress. The 2024 report reveals that illicit activities account for less than 0.5% of total on-chain transaction volume. Additionally, mid-year updates showed that “total illegal activity on-chain has fallen by almost 20% since the beginning of the year” and highlighted the steps the industry is taking to prevent abuse.

The events of 2022 have eliminated many bad actors and financially unstable companies, paving the way for a more robust and resilient crypto industry. This evolving landscape highlights that cryptocurrency is no longer a haven for illicit activity, but is instead emerging as a model of accountability and traceability within the financial ecosystem.

Clarity of legislation will encourage adoption

The United States has historically been a global leader setting the pace for innovation and regulatory standards. But political uncertainty in recent years has caused the US to lag behind in creating clear regulatory frameworks for cryptocurrencies. In response, Europe has taken decisive action with the Crypto-Asset Markets Regulation (MiCA) for stablecoins, which is already in place and will be fully implemented by January 1, 2025.

During his campaign, President-elect Trump emphasized his commitment to ensuring the United States leads in encouraging innovation, especially in the cryptocurrency space. He expressed a clear desire for America to become the global leader in Bitcoin production and blockchain development.

This renewed focus is expected to accelerate the implementation of comprehensive regulatory frameworks in the US and make cryptocurrencies more accessible and compliant. Such developments could pave the way for significant new capital inflows into the sector, positioning the US as a competitive hub for digital asset innovation and investment.

Stablecoins will be used more widely

Although NFTs and meme coins are in the spotlight, 2025 could mark the rise of stablecoins as a transformative force in the digital asset landscape. Historically, it has been dominated by a few major providers and a few smaller providers. Momentum is expected to accelerate, with at least a dozen major stablecoin projects expected in the first half of 2025 as multiple providers aim to capitalize on the growing demand.

Originally designed as an effective trading tool to bridge crypto and fiat, stablecoins have evolved into a versatile solution for settlements and settlements in both digital and traditional finance. Their speed and low-cost transactions are increasingly replacing fiat transactions in some traditional industries. Additionally, stablecoins serve as a critical gateway to decentralized finance, allowing users to seamlessly access emerging financial products and services.

Stablecoins are now considered a key innovation for modernizing financial systems and advancing financial inclusion. In response to this opportunity, BitGo is developing its own stablecoin, GoUSD, specifically designed to meet these needs. With GoUSD, BitGo aims to provide users with a stable, efficient and inclusive financial tool for the digital economy.

final thoughts

The onset of institutional adoption has been a key driver of cryptocurrency’s rapid evolution. Major financial institutions, hedge funds and publicly traded companies are increasingly including Bitcoin in their portfolios, signaling confidence in the asset’s long-term sustainability.

A notable example is MicroStrategy, which held 439,000 Bitcoins as of December 16, 2024, solidifying its position as a leader in institutional Bitcoin investment. This level of commitment from leading institutions has significantly increased Bitcoin’s credibility as a mainstream financial asset.

Advances in blockchain technology and advances in cybersecurity measures have further increased trust in Bitcoin transactions and made the cryptocurrency more accessible and practical for daily use. These advances not only increase user confidence, but also pave the way for wider adoption in both enterprise and retail markets.

Looking ahead, 2025 promises to be a very important year for the crypto and digital asset ecosystem. With continued innovation, increasing adoption, and a focus on creating solutions that improve lives, the future of cryptocurrency is poised to be as transformational as it is exciting.

Brett Reeves

Brett Reeves is head of Go Network at enterprise digital asset infrastructure provider BitGo. Prior to joining BitGo, Brett was head of business development at Bequant, a leading regulated digital asset Prime Broker. Brett was responsible for driving global revenue growth and strategic relationship management with leading providers in the digital asset ecosystem. Brett has spent the last 19 years working within the Prime Brokerage and OTC Clearing sales teams of various global investment banks. These included roles at Citibank and Nomura in London and, more recently, roles at Standard Chartered Bank in Singapore; where he spent eight years building the FX and Interest Rates Prime Brokerage platform, where he led sales across MENA and ASEAN.