The global cryptocurrency industry is poised for another year of growing mainstream and institutional recognition in 2025, thanks to increasing regulatory clarity and soaring crypto valuations.
Crypto investor optimism is rising following the record-breaking year of 2024 when Bitcoin (BTC) price rose to an all-time high of $108,300 on Dec. 17, over a month after Donald Trump’s victory in the United States presidential election.
With expectations of more regulatory clarity associated with Trump’s incoming administration, the crypto industry could be set for another year of milestones, including more institutional adoption and a new high in global crypto investors, industry experts told Cointelegraph.
Regulatory clarity to bolster crypto investor count to a new all-time high
The crypto industry saw significant regulatory developments in 2024 in some of the biggest jurisdictions.
In Europe, the Markets in Crypto-Assets Regulation (MiCA) bill — the world’s first comprehensive regulatory crypto framework — framework went into full effect on Dec. 30, providing comprehensive guidelines for crypto service providers.
Over in Asia, Singapore is emerging as the next crypto hub thanks to its “risk-adjusted” regulation, which helped the country double the number of yearly digital asset licenses issued in 2024.
Singapore is home to 1,600 blockchain patents, 2,433 industry-related jobs and 81 crypto exchanges. These are stellar numbers for a country with less than six million inhabitants.
These global regulatory developments will usher in more adoption among retail and institutional investors alike, according to Jonathan Levin, CEO at Chainalysis.
“We can expect to see an increase in adoption from institutional and retail investors over the next year, especially as these regulations bring greater clarity to the industry,” Levin told Cointelegraph.
These new regulations will also enhance industry trust, market integrity and consumer protection, “which will make the industry more attractive to retail customers,” he added.
Levin said regulatory clarity would lead to an all-time high in daily crypto users and spur growth in institutional offerings such as exchange-traded funds (ETFs).
There were an estimated 560 million crypto holders, making up 6.8% of the global population as of July 12, according to the 2024 Cryptocurrency Ownership report by Triple-A.
560 million crypto holders worldwide by countries. Source: triple-a
According to Pavlo Denysiuk, CEO of crypto payments firm Lunu, the number of cryptocurrency holders could triple over the next two years based on current user growth.
“This is where we get more adoption everywhere and in terms of payments as well,” Denysiuk said during a panel discussion at NFT Fest 2024.
Who is better for the crypto industry - Trump or Kamala? Source: YouTube
Institutional adoption set for boost from ETFs and governmental BTC reserve plans
The US spot Bitcoin exchange-traded funds have already brought increased institutional adoption, thanks to making BTC investment more accessible for traditional financial institutions.
The Bitcoin ETFs were near the $110 billion mark in less than a year after their debut, bolstering analyst predictions for a $200,000 Bitcoin cycle top in 2025.
This dynamic is set to pave the growing acceptance of Bitcoin as an asset class among institutions, according to Chainalysis’ CEO, Levin:
“This is likely to translate into continued institutional interest, and efforts by financial institutions and crypto businesses to build the infrastructure and resilience required to support this investor demand.”
In a significant sign of Bitcoin adoption, Bitcoin’s status as a savings technology is gaining traction in the US, thanks to the Bitcoin Act — championed by Wyoming Senator Cynthia Lummis — which proposes the creation of a strategic Bitcoin reserve.
Lummis Bitcoin Act. Source: Lummis.senate.gov
The Bitcoin reserve proposal is gaining significant support thanks to US President-elect Donald Trump’s victory in the November 2024 election and the incoming Republican Party Senate majority, according to Anastasija Plotnikova, co-founder and CEO of Fideum.
Bitcoin may eventually surpass the $1 million price tag if the Bitcoin Act is accepted by US lawmakers, according to Adam Back, co-founder and CEO of Blockstream, the inventor of Hashcash and one of the most notable cryptographers in the industry.
Eric Trump Explains How His Dad Could Propel BTC to $1M. Source: Cointelegraph/YouTube
Crypto adoption in lower-income countries poised for continued growth
During 2024, cryptocurrency activity increased and peaked above the highs of the 2021 bull run, according to Chainalysis’ Geography of Cryptocurrency Report published in October 2024.
The Chainalysis Global Index, which measures the total value of crypto activity worldwide, rose to a new high of above 0.75 in the first quarter of 2024, according to the report.
Global index measuring the global value of crypto activity. Source: Chainalysis
While crypto adoption was mainly driven by lower-middle-income countries in 2023, the 2024 high was attributed to increased crypto activity across countries of all income levels, High income countries saw decreasing crypto activity in the beginning of 2024, added the report.
The growing global activity was mainly attributed to the growing real-world use cases around stablecoins and the debut of the US Bitcoin ETFs, Levin told Cointelegraph:
“There were many factors driving this, from the launch of the Bitcoin ETF in the US to stablecoins supporting real-world use cases in low and lower-middle income countries and DeFi activity increasing significantly in sub-Saharan Africa, Latin America and Eastern Europe.”
The 2024 Global Crypto Adoption Index. Source: Chainalysis
Low- and middle-income countries like India, Nigeria and Indonesia led adoption, with India ranking first on the Chainalysis Global Crypto Adoption Index.
In Latin America, El Salvador has already adopted Bitcoin as legal tender on Sept. 7, 2021, which generated over $31 million worth of profit for the country in the first three years.
Despite the $31 million profit, President Nayib Bukele’s decision received widespread criticism after Bitcoin fell from its previous all-time high of $69,000 in November 2021 after the collapse of the FTX exchange. El Salvador’s Bitcoin holdings fell deeply in the red after Bitcoin fell as low as $16,000 during the bear market.
El Salvador’s decision to adopt Bitcoin was a significant step for Bitcoin’s growing integration into the global financial system, according to Anndy Lian, author and intergovernmental blockchain expert.
Similar governmental initiatives could bolster Bitcoin adoption among other countries, Lian told Cointelegraph:
“As more countries ponder this path, we might see a gradual redefinition of what constitutes a ‘safe’ reserve asset. If Bitcoin becomes a staple in national reserves, it could fundamentally alter the landscape of global finance, pushing for more decentralized and digital approaches to economic stability.”
BTC and gold, 1-year chart. Source: Cointelegraph/TradingView
Bitcoin may even emerge as the next reserve asset next to gold. During the past year, Bitcoin rose by over 131% while gold prices rose by about 30%, TradingView data shows.
Crypto investor optimism remains high for 2025, especially after Bitcoin recaptured $100,000 on Jan. 6, two weeks ahead of Donald Trump’s inauguration on Jan. 20 — seen as a potential catalyst for crypto prices thanks to more regulatory clarity.
With price predictions ranging from $160,000 to above $180,000, Bitcoin’s 2025 rally is set to bring more investor attention to the cryptocurrency industry.
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