Citigroup analyst Alex Saunders pointed out six key factors that will help determine cryptocurrency prices in 2025 in a report last Friday, including ETF activity, regulation, and the future of stablecoins;
Supportive macro backdrop
Analysts expect the current macro backdrop to continue supporting high-risk trading in the first quarter of next year, but warn that the outlook beyond that is less certain. They stated that the outlook could shift depending on Trump's economic policies and stock market volatility.
Continued capital inflow into spot ETFs
Analysts expect that the strong capital inflows into cryptocurrency spot ETFs during the first year of listing will continue into 2025, providing further momentum for price growth.
Cryptocurrency allocation in portfolios
Portfolio allocation will also be key to future returns from cryptocurrencies. Analysts stated that during this year's rebound, Bitcoin added value to multi-asset portfolios. Nevertheless, it remains a highly volatile and risky asset, with risks to the total portfolio reaching 10% or more when allocation exceeds 3%.
Stablecoin issuance
Analysts noted that the continued issuance of stablecoins has been boosted following Trump's election, which will help create a healthier cryptocurrency market.
Higher adoption rates
Analysts stated that the most important theme to track for cryptocurrencies is the adoption rate.
Regulatory easing
Finally, analysts indicated that regulation will be a major theme next year as Trump takes office. The incoming U.S. president has appointed several candidates who support cryptocurrencies to his cabinet. Their policies are not yet clear, but the industry generally expects regulation to become more lenient, which could drive broader adoption.

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