The cryptocurrency market is expecting a “surge in demand” in 2025. How will this affect the price of Bitcoin?
Sygnum Bank experts have published a new study of the crypto market with very optimistic conclusions: according to them, in 2025 the digital asset industry will experience a so-called “demand explosion”. It will be caused by large-scale capital inflows from institutional investors. After all, now large players want to invest capital in spot Bitcoin ETFs, and at the moment, every new billion of funds in these instruments leads to an increase in the value of the main cryptocurrency by 3-6 percent. These are not the only reasons for positivity.
Representatives of the Bitwise investment fund also shared their forecast for the state of the cryptocurrency market in 2025 the day before. They believe that during this period of time, the number of countries that own bitcoins will double.
Analysts also predicted a softening of the attitude towards crypto from the US Department of Labor, due to which the digital asset sector will receive billions of dollars in investments through pension plans. In addition, the capitalization of stablecoins will jump to 400 billion dollars, that is, it will double the current figure.
Read more about these and other points in a separate article .
What will happen to the price of Bitcoin?
Sygnum platform representatives expect that the positive effect on the BTC price from the capital inflow into the ETF will only increase in 2025. This was stated by the platform’s management representative Martin Burgerr – here is the corresponding reply.
With US regulatory clarity improving and Bitcoin potentially being recognized as a reserve asset, 2025 could see a dramatic acceleration in institutional participation in crypto assets. Our analysis shows how even relatively modest investments in this segment could dramatically change the ecosystem.
Today, an important event took place in the cryptocurrency sphere: analysts from the largest investment fund BlackRock recommended that other companies increase their investments in BTC. According to them, 2 percent of available capital should be allocated for this purpose.
As the company representatives noted, the first cryptocurrency can be considered a good tool for diversifying an investment portfolio. However, at the same time, its risk profile is generally comparable to what is happening with the shares of such major players as Google, Amazon, Meta and Apple. Therefore, they definitely recommend getting involved with coins.
According to sources at Cointelegraph , this trend will also spread to altcoins. However, this will only be relevant if the United States passes laws that support proper regulation of cryptocurrencies. Experts continue.
Policymakers must create rules tailored to the asset class that allow projects to transfer value to token holders without creating a compliance burden they cannot reasonably meet.
Recall that during the presidency of Joe Biden, the SEC required crypto companies to comply with the Securities Act, which was issued in the first half of the last century. And although the largest players in the industry asked regulators to create a new framework for managing the coin industry, this never came to fruition.
Well, Trump and the government officials they appoint are expected to approve just such market management standards. This became one of the reasons for the sharp growth of the industry after the Republican’s victory in the elections in early November.
Sygnum cited the proposed FIT21 bill and the Stablecoin Act as particularly important for cryptocurrencies.
The US also needs laws to regulate self-custody of digital assets, cryptocurrency mining, and decentralized finance (DeFi). Until then, Bitcoin’s unusually strong growth drivers will hold back the rest of the market.
In all the variety of cryptocurrencies, the platform experts have certain reasons for concern. One of them is the sphere of meme tokens, which are still in demand among investors. Analysts are sure that the injection of capital into such projects has led to a strong interest in memes – and this is supposedly fraught with the formation of a new bubble.
Overall, Trump is set to make digital assets a major issue in the political arena in the United States. For example, on Tuesday, sources from Donald Trump’s transition team told Axios that “the president-elect will be very focused on the Bitcoin price because it’s his second stock market.”
It was also noted that Trump would be “very pleased” if BTC rose to $150,000 immediately after the politician took office.
However, it is not only this country that has government structures interested in Bitcoin and crypto in general. Now, local authorities in the Canadian city of Vancouver have officially approved a proposal to develop the acceptance of BTC.
A document presented by Mayor Ken Sim last month proposed integrating Bitcoin into Vancouver’s financial strategies, including using the cryptocurrency to pay taxes and fees, and converting some of the city’s financial reserves into it.
The current proposal explains that converting some of the city’s financial reserves into Bitcoin would help preserve Vancouver’s purchasing power in the face of volatility, depreciation, and inflationary pressures in traditional currencies, as quoted by The Block .
Diversifying the City of Vancouver’s financial reserves and payment methods to include Bitcoin will not only improve the resilience of our City’s financial portfolio, but will ultimately benefit City taxpayers.
The proposal also calls for an evaluation and report to the City Council by the end of the first quarter of 2025 on the feasibility, risks and potential benefits of a Bitcoin strategy.
This is far from the first time that local funds have allocated resources to study the advantages of the crypto market. Recall that the management of the British pension fund Cartwright did something similar earlier.
The crypto industry will likely enter the final stage of the bull run in 2025. Some analysts are already calling it the largest in the history of the market due to the presence of the largest companies in the world. We will be able to test this version in practice very soon.
Find more interesting things in our crypto chat . There we will talk about other topics that determine the course of the current bull run in the digital asset and blockchain industry.
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