Citigroup has highlighted six key factors that will influence the trajectory of cryptocurrencies in 2025. 1. Macroeconomic outlook: The macroeconomic climate will remain favorable for riskier assets like crypto in the first quarter of 2023, but beyond that, the picture is unclear. The emergence of a more challenging macroeconomic climate next year could be driven by policy uncertainty in the US and increased market volatility. 2. Spot Crypto ETFs: Spot crypto ETFs (Exchange-Traded Funds) will likely continue to have a significant impact on the market in 2023. 3. Stablecoin issuance: Stablecoins will continue to play a significant role in DeFi (Decentralized Finance). 4. Cryptocurrency allocation in institutional portfolios: Institutions will likely allocate more to crypto in their portfolios only if crypto returns are higher than equity returns. 5. Sovereign BTC (Bitcoin) purchases: The adoption and legalization of Bitcoin by countries and their central banks will significantly impact the market. 6. Regulatory headwinds: The regulatory climate for cryptocurrencies is still evolving, and increased regulation could have a negative impact on the market. Citigroup's report underscores that while the near-term outlook for cryptocurrencies remains positive, the longer-term outlook is uncertain and subject to various macroeconomic and regulatory factors.

#BTC #ETF