This article looks ahead to the transformative growth that the cryptocurrency market may experience in 2025. With the increasing rate of institutional adoption and the expanding range of application cases across various fields, cryptocurrency assets are gradually maturing. Furthermore, trends such as improvements in the regulatory environment, the development of stablecoins and payments, and the tokenization of traditional assets are expected to propel the cryptocurrency market further in 2025. This article is based on a piece written by Coinbase and compiled and translated by PANews. (Background: Institutions optimistic about the continued outbreak of RWA in 2025, highlighting four projects worth focusing on) (Context: Federal Reserve spokesperson: The era of ultra-low interest rates is over, Trump holds the key to rate cuts in 2025) Looking ahead to 2025, the crypto market is set to witness transformative growth. With the increasing rate of institutional adoption and the growing use cases across various sectors, the maturity of asset classes continues to gain momentum. Over the past year, spot ETFs have been approved in the U.S., the tokenization of financial products has increased significantly, stablecoins have grown substantially, and further integrated into the global payment framework. Achieving this goal is not an easy feat. While it is easy to view these successes as the result of years of effort, an increasing number of people believe that this is actually just the beginning of a grand journey. Considering that just a year ago, this asset class was still stumbling due to interest rate hikes, regulatory crackdowns, and an uncertain path forward, the progress of cryptocurrency is even more impressive. Despite facing all these challenges, cryptocurrency has become a solid alternative asset, demonstrating its resilience. However, from a market perspective, the upward trend in 2024 does present some clear differences from previous bull market cycles. Some of these are superficial: "Web3" has been replaced by the more appropriate "onchain". Others have more far-reaching impacts: the demand for fundamentals has begun to replace the influence of narrative-driven investment strategies, partly due to the increased level of institutional participation. In addition, not only has Bitcoin's dominance surged, but innovations in DeFi have also pushed the boundaries of blockchain – bringing the foundation of a new financial ecosystem within reach. Central banks and major financial institutions around the world are discussing how crypto technology can make asset issuance, trading, and record storage more efficient. Looking ahead, the current cryptocurrency landscape presents many promising developments. At the forefront of disruption, we focus on decentralized peer-to-peer exchanges, decentralized prediction markets, and AI agents equipped with crypto wallets. On the institutional side, there is immense potential in stablecoins and payments (which integrate crypto and fiat banking solutions more closely), low-collateral on-chain lending (facilitated by on-chain credit scoring), and compliant on-chain capital formation. Despite the high awareness of cryptocurrency, its novel technical structure remains obscure for many. However, technological innovations are also expected to change this status quo, as an increasing number of projects focus on improving user experience by abstracting blockchain complexities and enhancing smart contract functionalities. Success in this area could expand the accessibility of cryptocurrencies to new users. Meanwhile, the U.S. has laid a clearer regulatory foundation in 2024, well ahead of the November elections. This sets the stage for greater progress in 2025, potentially solidifying the position of digital assets in mainstream finance. As the regulatory and technological landscape evolves, the crypto ecosystem is expected to experience significant growth, as broader adoption will drive the industry closer to realizing its full potential. 2025 will be a pivotal year, with breakthroughs and advancements likely to shape the long-term development trajectory of the crypto industry for decades to come. Topic 1: The Macroeconomic Roadmap for 2025 What the Federal Reserve Wants, What the Federal Reserve Needs Trump's victory in the 2024 U.S. presidential election is the most significant catalyst for the crypto market in Q4 2024, driving Bitcoin prices up by 4-5 standard deviations (compared to the three-month average). However, looking ahead, the reaction of short-term fiscal policy may not be as meaningful as the long-term direction of monetary policy, especially with the key moments for the Federal Reserve approaching. However, separating the two may not be so easy. The Federal Reserve is expected to continue easing monetary policy in 2025, but the pace may depend on the expansiveness of the next set of fiscal policies. This is because tax cuts and tariffs could push up inflation, and while the overall CPI year-on-year has fallen to 2.7%, the core CPI remains around 3.3%, above the Federal Reserve's target. Regardless, the Federal Reserve hopes to suppress inflation from current levels, which means prices need to rise but slow down from now to help achieve its other mission – full employment. On the other hand, households, after experiencing the pain of rising prices over the past two years, have been demanding a decrease in prices. However, while a drop in prices may be politically expedient, it could potentially lead to a vicious cycle that ultimately results in an economic recession. Nevertheless, thanks to falling long-term interest rates and U.S. exceptionalism 2.0, a soft landing seems to be the current baseline scenario. At this point, the Federal Reserve's rate cuts are merely formalities, as credit conditions have already loosened, providing a supportive backdrop for cryptocurrency performance in the coming 1-2 quarters. Meanwhile, with more dollars circulating in the economy, the anticipated deficit spending of the next government (if realized) should translate into greater risk-taking (cryptocurrency purchases). The most supportive U.S. Congress for cryptocurrency ever After years of battling regulatory ambiguity, the next U.S. legislative session may enhance regulatory clarity for the crypto industry. This election has sent a strong message to Washington that the public is dissatisfied with the current financial system and desires change. From a market perspective, both the House and Senate are bipartisan supporters of cryptocurrency, which means that U.S. regulation may shift from "headwinds" to "tailwinds" in 2025. One new topic of discussion is the possibility of establishing strategic Bitcoin reserves. Following the Bitcoin Nashville Conference, Senator Cynthia Lummis (WY) not only introduced a Bitcoin bill in July 2024 but also proposed a Pennsylvania Bitcoin Strategic Reserve Bill. If passed, the latter would allow the state treasurer to invest up to 10% of the general fund in Bitcoin or other crypto-based instruments. Michigan and Wisconsin have already held cryptocurrencies or cryptocurrency ETFs in their pension funds, with Florida following closely. However, establishing strategic Bitcoin reserves may face some challenges, such as the legal limitations on the amount of Bitcoin the Federal Reserve can hold on its balance sheet. Meanwhile, the U.S. is not the only jurisdiction preparing to make progress on regulatory fronts. The global increase in crypto demand is also changing the competitive landscape for regulation internationally. The EU's Markets in Crypto-Assets (MiCA) regulation is being phased in, providing a clear framework for the industry. Many G20 countries and major financial centers such as the UK, UAE, Hong Kong, and Singapore are also actively developing rules to adapt to digital assets, creating a more favorable environment for innovation and growth. Crypto ETF 2.0 The U.S. approval of spot Bitcoin and Ethereum exchange-traded products and funds (ETPs and ETFs) marks a watershed moment for the crypto economy, with net inflows of $30.7 billion since its inception (approximately 11 months). This far exceeds the inflows attracted by the SPDR Gold Shares ETF (GLD) in its first year after launch in October 2004...