Citi predicts the factors that will determine the success or failure of crypto in 2025
According to Citi, 2025 will be an important year for the cryptocurrency market, with many factors determining success or failure. The development of ETFs, stablecoins, and positive regulatory changes will play a key role. However, macroeconomic instability remains a significant risk. The launch of Bitcoin spot ETFs in 2024 has attracted massive interest from investors, contributing to market growth. Active economic policies, such as interest rate cuts and stimulus measures, also boost economic growth and positively influence the cryptocurrency market. Donald Trump's victory in the US election is also said to be a key factor, with his crypto-friendly stance helping Bitcoin reach record prices. However, Citi warns that the high-risk trading trend may only last until early 2025, and growth momentum may decline due to increased economic uncertainties. Stablecoins are predicted to play an important role in minimizing systemic risk and expanding applications in DeFi. Finally, greater regulatory clarity under the Trump administration is also expected to facilitate market development.