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2024 marked a significant turning point for the cryptocurrency industry. Bitcoin (BTC) exchange-traded funds took center stage early in the year, underscoring Bitcoin’s resilience and solidifying its position as a permanent fixture in the global financial landscape.
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After an initial post-ETF surge, the market experienced sideways movement as the industry navigated challenges, including what many have described as “debanking” by certain US regulatory bodies. These hurdles highlighted the growing pains of a nascent sector still striving for widespread acceptance and integration.
The US Presidential elections dominated the latter half of the year, with cryptocurrency playing a pivotal role in the political discourse. As Donald Trump prepares to take office in January, his administration is poised to bring a markedly different stance on digital assets. Widely regarded as the “Crypto President,” Trump’s pro-blockchain perspective signals a step change from the Biden Administration.
The appointment of Paul Atkins as head of the SEC is a testament to this shift, paving the way for a regulatory environment more attuned to the transformative potential of blockchain technology. Against this backdrop, Bitcoin has achieved a historic milestone, surpassing the $100,000 price threshold—a powerful symbol of the sector’s growing maturity and global significance.
Crypto adoption: A steepening curve
Over the past 15 years since Bitcoin’s inception in 2009, one undeniable truth has emerged: blockchain technology has revolutionized and continues to reshape business models across a range of industries. From finance and gaming to supply chain and social media, blockchain’s ability to deliver faster, more cost-effective, and more secure processes is driving transformative change. While blockchain technology predates Bitcoin, its widespread adoption has accelerated with the rise of cryptocurrencies.
Will there be more crypto users in 2025? All indicators suggest the answer is a resounding yes. Measured by active crypto wallets, the adoption curve is rising sharply, outpacing even the rapid growth of internet users in the early 2000s. The parallels are striking, with the challenges of the dot-com crash echoed in the crypto market downturns of 2022 and 2023. Yet, just as the internet emerged stronger post-crash, the crypto ecosystem is now poised for further expansion and innovation.
Crypto adoption is multi-faceted, encompassing use cases that extend far beyond speculative trading. Below are a few areas in which we can expect the technology to continue making an impact:
Building applications: Developers and technologists are acquiring crypto assets to utilize blockchain protocols, enabling the creation of decentralized applications. These applications are already enhancing real-world experiences, particularly in gaming, where new titles leverage blockchain to allow gamers to earn tokens and seamlessly transfer value between games.
Investment opportunities: Crypto assets are becoming an integral part of diversified investment portfolios. Whilst a core set of adopters have been “HODLing” for years, retail and institutional interest is surging with the introduction of regulated exchange-traded funds. These ETFs, tied to underlying assets like Bitcoin and Ethereum (ETH), provide investors with a more accessible way to engage with the crypto market. The pipeline for additional ETFs is growing, broadening investor choice.
Treasury management: Corporations are also exploring crypto’s potential, with companies like MicroStrategy using Bitcoin as part of their treasury management strategy. Major players such as Microsoft and Amazon, as well as entire nations, are evaluating similar moves, recognizing Bitcoin’s utility as a long-term store of value.
Cross-border transactions: Stablecoins are revolutionizing global remittances, enabling users, particularly in regions like Asia, to send money internationally with minimal fees and near-instant processing times.
Whether it’s through decentralized applications, institutional investment in crypto ETFs, or everyday users leveraging stablecoins for payments, the crypto ecosystem is set to expand dramatically in 2025. Blockchain’s transformative power is not just reshaping industries but also fostering greater financial inclusion and creating new opportunities for innovation.
As we move into this next phase, one thing is clear: the blockchain and crypto landscape is no longer a niche—it’s a growing force shaping the future of technology and finance.
Good companies prevail in tough times
Just a few years ago, headlines frequently linked cryptocurrencies to illicit activities, a perception exacerbated by high-profile events, including the largest fraud in financial history. However, much like the dot-com crash, where companies like Amazon and eBay emerged stronger, the cryptocurrency industry has demonstrated its resilience and capacity for evolution.
Recent research from Chainalysis highlights significant progress. Their 2024 report reveals that illicit activity accounts for less than 0.5% of total on-chain transaction volume. Furthermore, their mid-year update showed that “aggregate illicit activity on-chain has dropped by almost 20% year-to-date,” underscoring the industry’s strides in addressing misuse.
The events of 2022 eliminated many bad actors and financially unstable companies, paving the way for a more robust and resilient crypto industry. This evolving landscape highlights that crypto is no longer a haven for illicit activity but is instead emerging as a model of accountability and traceability within the financial ecosystem.
Regulatory clarity will foster adoption
The United States has historically been a global leader, setting the pace for innovation and regulatory standards. However, in recent years, political uncertainty has caused the US to fall behind in establishing clear regulatory frameworks for cryptocurrencies. In contrast, Europe has taken decisive action with the Markets in Crypto-Assets Regulation (MiCA), which is already in effect for stablecoins and will be fully implemented by January 1, 2025.
During his campaign, President-elect Trump emphasized his commitment to ensuring that the US leads in fostering innovation, particularly in the cryptocurrency space. He has expressed a clear ambition for America to become the global leader in Bitcoin production and blockchain development.
This renewed focus is expected to accelerate the implementation of comprehensive regulatory frameworks in the US, making cryptocurrencies more accessible and compliant. Such developments could pave the way for substantial new capital inflows into the industry, positioning the US as a competitive hub for digital asset innovation and investment.
Stablecoins will be more widely used
While NFTs and meme coins have each had their time in the spotlight, 2025 could mark the rise of stablecoins as a transformative force in the digital asset landscape. Historically, it has been dominated by a few key providers and a number of smaller providers. The momentum is set to accelerate, with no fewer than a dozen major stablecoin projects anticipated in the first half of 2025, as multiple providers aim to capitalize on the growing demand.
Initially designed as an efficient trading tool to bridge crypto and fiat, stablecoins have evolved into a versatile solution for payments and settlements in both digital and traditional finance. Their speed and low-cost processing are increasingly replacing fiat transactions in some conventional industries. Additionally, stablecoins serve as a critical gateway to decentralized finance, enabling users to seamlessly access emerging financial products and services.
Stablecoins are now recognized as a key innovation for modernizing financial systems and advancing financial inclusion. In response to this opportunity, BitGo is developing its own stablecoin, GoUSD, specifically designed to address these needs. With GoUSD, BitGo aims to empower users with a stable, efficient, and inclusive financial tool for the digital economy.
Final thoughts
The commencement of institutional adoption has been a key driver of cryptocurrency’s rapid evolution. Major financial institutions, hedge funds, and publicly traded companies are increasingly incorporating Bitcoin into their portfolios, signaling confidence in the asset’s long-term viability.
A standout example is MicroStrategy, which, as of 16 December 2024, held 439,000 Bitcoins, solidifying its position as a leader in corporate Bitcoin investment. This level of commitment from prominent institutions has significantly enhanced Bitcoin’s credibility as a mainstream financial asset.
Advancements in blockchain technology and improvements in cybersecurity measures have further bolstered trust in Bitcoin transactions, making cryptocurrency more accessible and practical for everyday use. These developments not only enhance user confidence but also pave the way for broader adoption across both institutional and retail markets.
Looking ahead, 2025 promises to be a pivotal year for the crypto and digital asset ecosystem. With continued innovation, growing adoption, and a focus on building solutions that improve lives, the future of cryptocurrency is poised to be as transformative as it is exciting.
Read more: The strategic entry of institutional investors into cryptocurrency | Opinion
Author: Brett Reeves
Brett Reeves is the head of Go Network at institutional digital asset infrastructure provider BitGo. Prior to joining BitGo, Brett was head of business development at Bequant, a leading, regulated digital asset Prime Broker. Brett was responsible for driving global revenue growth and strategic relationship management with leading providers in the digital asset ecosystem. Brett had spent the previous 19 years working for various global investment banks within their Prime Brokerage and OTC Clearing sales teams. These included roles in London for Citibank and Nomura and, more recently, Standard Chartered Bank in Singapore, where he spent eight years building their FX and Interest Rates Prime Brokerage platform, where he ran sales across MENA and ASEAN.
