Deep Trend TechFlow News, on December 27, according to Cointelegraph, Citi’s latest research report pointed out that the continued adoption of stablecoins and cryptocurrency ETFs will become the main driving force for the performance of digital assets in 2025. The report highlights that after Trump won the US presidential election in November, the three key indicators of the cryptocurrency market - ETF inflows, on-chain activity and stablecoin usage all increased significantly, and this trend is expected to continue into the New Year.
Citi analysis pointed out that Bitcoin ETF capital inflows will have a significant impact on BTC prices in 2024, with each $1 billion of capital inflows bringing about an average price increase of about 4.7%, explaining about 46% of Bitcoin price fluctuations. In terms of stablecoins, the market capitalization of the three major stablecoins (USDT, USDC, and DAI) increased significantly after the election, with a cumulative increase of more than $25 billion. Citi believes this trend is particularly beneficial for the DeFi ecosystem, as stablecoins are an important entry point into decentralized finance.
