Regulatory clarity will lead to a historic high in the number of cryptocurrency investors.
Original Title: (Top crypto adopters in 2025: Institutions, retail, low-income countries)
Author: Zoltan Vardai
Translated by: Bai Shui, Jinse Finance
Due to clearer regulations and skyrocketing cryptocurrency valuations, the global cryptocurrency industry is expected to gain mainstream and institutional recognition again in 2025.
2024 saw a historic peak, with Bitcoin's price reaching an all-time high of $108,300 on December 17, more than a month after Donald Trump won the U.S. presidential election, as optimism among cryptocurrency investors is rising.
Industry experts point out that with clearer regulatory expectations under Trump's new government, the cryptocurrency industry may welcome another milestone year, including more institutional adoption and a record number of global cryptocurrency investors.
Regulatory clarity will lead to a historic high in the number of cryptocurrency investors.
In 2024, the crypto industry experienced significant regulatory developments in some of the largest jurisdictions.
In Europe, the Markets in Crypto-Assets Regulation (MiCA) — the world's first comprehensive crypto regulatory framework — came into full effect on December 30, providing comprehensive guidelines for crypto service providers.
In Asia, Singapore is becoming the next crypto hub with its 'risk-adjusted' regulations, helping the country double the number of digital asset licenses issued annually in 2024.
Singapore has 1,600 blockchain patents, 2,433 industry-related job openings, and 81 cryptocurrency exchanges. These numbers are impressive for a country with a population of less than 6 million.
Chainalysis CEO Jonathan Levin stated that these global regulatory developments will welcome more retail and institutional investor adoption.
Levin stated: "We can expect higher adoption rates for both institutional and retail investors next year, especially as these regulations bring greater transparency to the industry."
He added that these new regulations will also enhance industry trust, market integrity, and consumer protection, "making the industry more attractive to retail investors."
Levin stated that regulatory transparency will lead to a historic high in the number of daily cryptocurrency users and stimulate the growth of institutional products such as exchange-traded funds (ETFs).
According to Triple-A's 2024 Cryptocurrency Ownership Report, as of July 12, an estimated 560 million cryptocurrency holders account for 6.8% of the global population.
There are a total of 560 million cryptocurrency holders worldwide. Source: triple-a
Pavlo Denysiuk, CEO of crypto payment company Lunu, stated that based on current user growth, the number of cryptocurrency holders could double in the next two years.
Denysiuk stated during a panel discussion at NFT Fest 2024: "This is where we see more adoption everywhere and in payments."
ETFs and government BTC reserve plans will drive institutional adoption.
The U.S. spot Bitcoin exchange-traded fund has brought more institutional adoption by making it easier for traditional financial institutions to access BTC investments.
Bitcoin ETFs approached the $110 billion mark in less than a year after their launch, supporting analysts' predictions of a peak of $200,000 for Bitcoin in 2025.
Chainalysis CEO Levin said that this dynamic will pave the way for institutions to increasingly accept Bitcoin as an asset class:
This is likely to translate into sustained institutional interest, as well as efforts by financial institutions and cryptocurrency companies to build the infrastructure and resilience needed to support investor demand.
As an important sign of Bitcoin's popularity, its status as a savings technology is increasingly rising in the U.S., thanks to the Bitcoin Bill advocated by Wyoming Senator Cynthia Lummis, which proposes the establishment of a strategic Bitcoin reserve.
Lummis Bitcoin Bill. Source: Lummis.senate.gov
Anastasija Plotnikova, co-founder and CEO of Fideum, stated that due to Donald Trump winning the presidential election in November 2024 and the Republican majority in the Senate, the Bitcoin reserve proposal is gaining strong support.
Blockstream co-founder and CEO, Hashcash inventor, and one of the industry's most notable cryptographers Adam Back stated that if the Bitcoin Bill is accepted by U.S. lawmakers, Bitcoin's price could eventually exceed $1 million.
Cryptocurrency adoption in low-income countries is expected to continue to grow.
According to Chainalysis' Crypto Geography Report released in October 2024, cryptocurrency activity increased and peaked at the 2021 bull market high in 2024.
Reports indicate that Chainalysis' Global Index, which measures the total value of global crypto activity, rose to a new high above 0.75 in the first quarter of 2024.
Global Index measuring the total value of crypto activity. Source: Chainalysis
The report added that while 2023's cryptocurrency adoption was primarily driven by low and middle-income countries, the peak in 2024 is attributed to increased crypto activity in countries across all income levels, with high-income countries experiencing a decline in crypto activities at the beginning of 2024.
Levin noted that the increase in global activity is mainly due to the growing use cases of stablecoins in the real world and the debut of the U.S. Bitcoin ETF:
There are many factors driving this trend, from the U.S. launching Bitcoin ETFs to the use cases of stablecoins supporting low-income and middle-income countries in the real world, as well as a significant increase in DeFi activity in Sub-Saharan Africa, Latin America, and Eastern Europe.
2024 Global Cryptocurrency Adoption Index. Source: Chainalysis
Low and middle-income countries like India, Nigeria, and Indonesia are leading the adoption, with India ranking first in Chainalysis' Global Cryptocurrency Adoption Index.
In Latin America, El Salvador adopted Bitcoin as legal tender on September 7, 2021, bringing in over $31 million in profits for the country in the first three years.
Despite the $31 million profit, President Nayib Bukele's decision faced widespread criticism after Bitcoin fell from its historical high of $69,000 in November 2021 following the collapse of the FTX exchange. During the bear market, Bitcoin plummeted to $16,000, significantly reducing El Salvador's Bitcoin holdings.
Author and intergovernmental blockchain expert Anndy Lian stated that El Salvador's decision to adopt Bitcoin is an important step in Bitcoin's increasing integration into the global financial system.
Lian stated that similar government initiatives could promote Bitcoin adoption in other countries:
As more countries consider this path, we may see a gradual redefinition of 'safe' reserve assets. If Bitcoin becomes the primary currency of national reserves, it could fundamentally change the global financial landscape, driving more decentralized and digitized economic stability methods.
BTC and gold, 1-year chart. Source: Cointelegraph/TradingView
Bitcoin could even become the next reserve asset after gold. TradingView data shows that Bitcoin has risen over 131% in the past year, while gold prices have risen by about 30%.
Cryptocurrency investors remain highly optimistic about 2025, especially on January 6, just two weeks before Donald Trump's inauguration on January 20, after Bitcoin reclaimed $100,000 — seen as a potential catalyst for crypto prices due to clearer regulations.
Bitcoin's momentum in 2025 is expected to attract more investors to the cryptocurrency industry, with price predictions ranging from $160,000 to over $180,000.
