2025 is shaping up to be the year Bitcoin really goes mainstream, with increased adoption from both governments and companies. But right now, in January, the market is experiencing a slump. Despite the excitement over the Trump administration’s approach to cryptocurrencies, some experts warn that many banks will still be hesitant to take on the risk of dealing with cryptocurrencies.
Strong Bull Run Despite Recent Decline
Alice Liu, Head of Research at CoinMarketCap, joined Scott Melker and explained that coins are still rising strongly, despite the market undergoing some pullbacks. She mentioned that a new index tracking the top 100 cryptocurrencies launched in December shows that the overall market strength remains unaffected despite these small declines.
Liu predicts that strong demand and continuous buying pressure could make 2025 a breakthrough year for Bitcoin. Concerns about global economic events or recessions may affect price volatility, but widespread adoption could serve as a key catalyst driving its value even higher.
Altcoin Season: Where Are We Now?
The Head of Research stated that in December, the market witnessed a strong altcoin season, with the index (CMC Altcoin Season Index) reaching 87, meaning altcoins truly surged.
This index measures the performance of the top 100 cryptocurrencies compared to Bitcoin. If 75% of these coins outperform Bitcoin, it means the market is in a full altcoin season. Currently, this index is at 46, indicating that the altcoin season has cooled a bit, but the market still shows signs of strong altcoin activity.
The Cryptocurrency Divide: Speculative Coins vs. Utility Projects
Liu explains that cryptocurrency projects are divided into two categories: utility coins like XRP, XLM, and ADA, and speculative 'casino coins' like meme coins that attract gamblers.
Although speculation will always exist, the real winners in the next cycle will be solid, utility-focused projects like XRP, XLM, and ADA. Liu also believes that AI and blockchain technology could connect decentralized applications in the real world, driving long-term growth even after the hype subsides.