The Crypto Assets industry is expected to regain mainstream recognition in 2025

As the global regulatory environment becomes clearer and the valuation of Crypto Assets skyrockets, the Crypto Assets industry is expected to regain mainstream and institutional favor by 2025.

By the end of 2024, the price of Bitcoin reached a historic high of $108,300, a milestone breakthrough that occurred more than a month after the results of the U.S. presidential election were announced. This surge has sparked optimism among Crypto Assets investors.

Industry experts point out that 2025 could become another important year for the Crypto Assets industry. With the new government's regulatory stance becoming clearer, it is expected that more institutions will adopt Crypto Assets, and the number of global Crypto Assets investors is also likely to reach a new high.

Clear regulation will drive the growth of Crypto Assets user numbers.

In 2024, the crypto industry experienced significant regulatory developments in major jurisdictions.

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

In the Asian region, Singapore is becoming an emerging Crypto Assets hub with its "risk-adjusted" regulatory strategy. In 2024, the number of digital asset licenses issued annually in the country doubled. As a country with a population of less than 6 million, Singapore boasts 1,600 blockchain patents, 2,433 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 into the market. He expects that the adoption rate among institutional and retail investors will increase next year, especially in light of these regulations bringing greater transparency to the industry.

The CEO added that the new regulatory measures will enhance industry trust, market integrity, and consumer protection, "making 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 the exchange-traded fund (ETF).

According to a 2024 Crypto Assets ownership report, as of July 12, there are an estimated 560 million Crypto Assets holders worldwide, accounting for 6.8% of the global population.

The CEO of a certain crypto payment company stated that, based on the current user growth trend, the number of Crypto Assets holders may double in the next two years. He pointed out during a panel discussion at the 2024 NFT conference: "This will drive broader adoption for us across various fields, particularly in payment."

ETF and government Bitcoin reserve plans will drive institutional adoption

The launch of the Bitcoin spot ETF in the United States has made it easier for traditional financial institutions to invest in Bitcoin, leading to greater institutional participation.

The Bitcoin ETF has reached nearly $110 billion in size less than a year after its launch, supporting analysts' prediction that the Bitcoin cycle peak will reach $200,000 by 2025.

Industry experts believe that this trend will pave the way for institutions to increasingly accept Bitcoin as an asset class. They expect this to translate into sustained institutional interest, as well as efforts 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. This is mainly due to a senator's advocacy for the "Bitcoin Act," which proposes the establishment of a strategic Bitcoin reserve.

A well-known cryptographer in the industry stated that if the "Bitcoin Bill" is accepted by U.S. lawmakers, the price of Bitcoin could eventually exceed $1 million.

The adoption of Crypto Assets in low-income countries continues to grow

According to a Crypto Assets geography report released in October 2024, Crypto Assets activity increased in 2024 and reached a peak comparable to the bull market high of 2021. The report shows that the index measuring the total value of global crypto activity reached a new high of over 0.75 in the first quarter of 2024.

The report adds 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 across all income levels, with high-income countries experiencing a decrease in crypto activity at the beginning of 2024.

Experts point out that the increase in global activity is primarily attributed to the growing use cases of stablecoins in the real world and the debut of Bitcoin ETFs in the United States. Factors driving this trend include the launch of Bitcoin ETFs in the United States, the practical applications of stablecoins supporting low-income and lower-middle-income countries, and a significant increase in DeFi activities in Sub-Saharan Africa, Latin America, and Eastern Europe.

Countries with middle to low incomes, such as India, Nigeria, and Indonesia, are leading in the adoption of Crypto Assets, with India ranking first in the global Crypto Assets adoption index.

In Latin America, El Salvador adopted Bitcoin as legal tender on September 7, 2021, which brought the country more than $31 million in profit in the first three years. Nevertheless, after the collapse of a certain exchange, Bitcoin fell from its historical high of $69,000 in November 2021, and the president's decision was widely criticized. During the bear market, after Bitcoin dropped to $16,000, El Salvador's Bitcoin holdings significantly shrank.

A 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 government initiatives may promote the adoption of Bitcoin by other countries. 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 and drive more decentralized and digitized economic stability methods.

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

Crypto Assets investors remain highly optimistic about 2025, especially after Bitcoin broke the $100,000 barrier again on January 6. This is seen as a potential catalyst for the rise in Crypto Assets prices due to a clearer regulatory environment.

Industry insiders expect that the rise of Bitcoin in 2025 will attract more investors' attention to the Crypto Assets industry, with price forecasts ranging from $160,000 to over $180,000.