Author: Zoltan Vardai; Compiled by: Whitewater, Golden Finance

The global cryptocurrency industry is expected to gain mainstream and institutional recognition again in 2025 due to increasingly clear regulations and soaring cryptocurrency valuations.

2024 hits all-time highs, with Bitcoin prices rising to an all-time high of $108,300 on Dec. 17, just over a month after Donald Trump won the US presidential election. Cryptocurrency investors Optimism is rising.

Industry experts note that with clearer expectations for Trump’s new regulations, the cryptocurrency industry may usher in another milestone year, including more institutional adoption and global cryptocurrency investors. The number hit a new high.

Regulatory clarity will see record numbers of cryptocurrency investors

In 2024, the crypto industry experienced significant regulatory developments in some of the largest jurisdictions.

In Europe, the Markets in Crypto-Assets Act (MiCA) – the world’s first comprehensive crypto regulatory framework – came into full effect on December 30, providing comprehensive regulations for crypto service providers. guidelines.

In Asia, Singapore is becoming the next crypto hub with its “risk-adjusted” regulation, which has helped the country double the number of digital asset licenses it issues annually by 2024.

Singapore is home to 1,600 blockchain patents, 2,433 industry-related jobs and 81 cryptocurrency exchanges. For a country with a population of less than 6 million, these figures are staggering.

Chainalysis CEO Jonathan Levin said these global regulatory developments will usher in greater adoption by both retail and institutional investors.

“We can expect increased adoption by institutional and retail investors next year, especially as these regulations bring greater transparency to the industry,” Levin said.

He added that the new regulations would also enhance industry trust, market integrity and consumer protection, "which will make the industry more attractive to retail investors".

Regulatory transparency will drive record numbers of daily cryptocurrency users and spur growth in institutional products such as exchange-traded funds (ETFs), Levin said.

As of July 12, there were an estimated 560 million cryptocurrency holders, representing 6.8% of the global population, according to Triple-A’s 2024 Cryptocurrency Ownership Report.

There are 560 million cryptocurrency holders in countries around the world. Source: triple-a

Pa, CEO of crypto payments company Lunuvlo Denysiuk said that based on current user growth, the number of cryptocurrency holders could triple in the next two years.

“That’s where we’re going to get more adoption everywhere and in payments,” Denysiuk said during a panel discussion at NFT Fest 2024.

ETF and BTC reserve plans to drive institutional adoption< p>US spot Bitcoin exchange-traded funds have led to increased institutional adoption by making BTC investments more accessible to traditional financial institutions.

A Bitcoin ETF is approaching the $110 billion mark less than a year after its launch, supporting analysts’ predictions of a Bitcoin cycle peak of $200,000 in 2025.

Chainalysis CEO Levin Said that this dynamic will pave the way for increasing institutional acceptance of Bitcoin as an asset class:

“This will likely translate into continued institutional interest, as well as financial institutions and cryptocurrencies Businesses’ efforts to build the infrastructure and resiliency needed to support investor demand ”

An important sign of Bitcoin’s popularity, Bitcoin’s status as a savings technology is growing in the United States. Improved, thanks to Wyoming Senator Cynthia Lummis Advocate for the Bitcoin Act, which proposes the establishment of a strategic Bitcoin reserve.

Lummis Bitcoin Bill. Source: Lummis.senate.gov

Fideum co-founder and CEO Anastasija Plotnikova said that due to the victory of US President-elect Donald Trump in the November 2024 election and the Republican majority in the Senate Seats, the Bitcoin Reserve proposal is gaining significant support.

Adam Back, co-founder and CEO of Blockstream, inventor of Hashcash, and one of the most famous cryptographers in the industry, said that if the Bitcoin Act is accepted by U.S. lawmakers, the price of Bitcoin will eventually Probably more than $1 million.

Cryptocurrency adoption among low-income households is expected to continue growing

Cryptocurrency activity increased in 2024 and peaked at the 2021 bull market highs, according to Chainalysis’ October 2024 Cryptocurrency Geography Report.

The Chainalysis Global Index, which measures the total value of global crypto activity, rose to a new high above 0.75 in the first quarter of 2024, the report said.

Global index measuring the global value of crypto activity. Source: Chainalysis

While cryptocurrency adoption in 2023 will be driven primarily by low- and middle-income earners, the report adds that in 2024 The highs were attributed to increased crypto activity across all income levels, while high incomes saw a decrease in crypto activity in early 2024

Levin. noted that the increase in global activity is primarily attributable to the growing real-world use cases for stablecoins and the debut of a U.S. Bitcoin ETF:

“There are many factors driving this trend, starting with the launch of the U.S. Bitcoin ETFs to stablecoins support real-world use cases for low- and lower-middle incomes, as well as significant increases in DeFi activity in sub-Saharan Africa, Latin America, and Eastern Europe. ”

Global Cryptocurrency Adoption Index 2024. Source: Chainalysis

India, Nigeria and Indonesia, etc. Low and middle incomes lead adoption, with India ranking first in Chainalysis Global Cryptocurrency Adoption Index

In Latin America, El Salvador became the first to adopt Bitcoin as legal tender on September 7, 2021. Three years have brought the country more than $31M Profits

President Nayib after Bitcoin fell from its all-time high of $69,000 in November 2021 following the collapse of FTX exchange · Bukele's decision was widely criticized. El Salvador's Bitcoin holdings fell sharply during the bear market after Bitcoin fell to $16,000

Author. Inter-blockchain expert Anndy Lian said El Salvador's decision to adopt Bitcoin is an important step in Bitcoin's increasing integration into the global financial system.

Lian said similar moves may promote the adoption of Bitcoin in other countries:

“As more consideration is given to this path, we may see a gradual redefinition of ‘safe’ reserve assets. If Bitcoin becomes the dominant currency of reserve, it could fundamentally change the global financial landscape and drive a more decentralized and digital approach to economic stability. ”

BTC and gold, 1-year chart. Source: Cointelegraph/TradingView

Bitcoin may even Becoming the next reserve asset after gold, TradingView data shows that Bitcoin has risen by more than 131% over the past year, while gold has.Prices are up about 30%.

Cryptocurrency investor optimism for 2025 remains high, especially as Bitcoin regained ground on January 6, two weeks before Donald Trump’s January 20 inauguration $100,000 later – This is seen as a potential catalyst for cryptocurrency prices due to greater regulatory clarity.

Bitcoin’s 2025 rally is expected to attract more investors to the cryptocurrency industry, with price predictions ranging from $160,000 to over $180,000.