The Crypto Assets industry is expected to gain mainstream recognition again in 2025.

With the global regulatory environment becoming increasingly clear and the valuation of Crypto Assets soaring, the Crypto Assets industry is expected to迎来 a new wave of development opportunities in 2025.

At the end of 2024, the price of Bitcoin reached a historic high of $108,300, an event that occurred more than a month after the results of the US election were announced. Crypto Assets investors generally hold an optimistic outlook for the future.

Industry experts indicate that with the new government coming to power, people expect the regulatory environment to become clearer. This could bring new development opportunities for the Crypto Assets industry, including more institutional participation and a record high in the number of global Crypto Assets users.

Clear regulation will drive user growth

In 2024, the encryption industry has experienced significant regulatory progress in several important jurisdictions.

In Europe, the world's first comprehensive encryption regulatory framework, the "Crypto Assets Market Regulation Act" ( MiCA ), will be fully implemented at the end of the year, providing detailed guidance for crypto service providers.

In the Asia region, Singapore is emerging as a new crypto center with its "risk-adjusted" regulatory strategy. The number of digital asset licenses issued by the country in 2024 has doubled compared to the previous year. Singapore boasts 1,600 blockchain patents, 2,433 related job positions, and 81 crypto asset exchanges, which are quite significant figures for a country with a population of only 6 million.

An executive from a blockchain analysis company stated that these global regulatory developments will attract more retail and institutional investors into the market. He pointed out that the new regulatory rules will enhance industry transparency, increase trust, and improve market integrity and consumer protection, making the Crypto Assets industry more appealing to retail investors.

The executive expects that the increase in regulatory transparency will drive daily active users to reach an all-time high and stimulate the growth of institutional products such as ETFs.

According to an industry report, by July 2024, there will be approximately 560 million Crypto Assets holders globally, accounting for 6.8% of the total population.

The CEO of a certain crypto payment company believes that, based on the current growth trend, the number of crypto assets users may double in the next two years. He stated at an industry conference: "This will lead to broader adoption, including in the payment sector."

ETF and government reserve programs will drive institutional participation

The launch of the Bitcoin spot ETF in the United States has made it easier for traditional financial institutions to participate in Bitcoin investments, leading to greater institutional adoption. In less than a year since the Bitcoin ETF was launched, it has approached a scale of 110 billion USD, supporting analysts' predictions that the price of Bitcoin will reach 200,000 USD by 2025.

The CEO of a blockchain analytics company stated that this will pave the way for institutions to more broadly accept Bitcoin as an asset class. He noted that this is likely to translate into sustained institutional interest, as well as efforts by financial institutions and crypto enterprises to build the necessary infrastructure.

As an important sign of Bitcoin's popularity, the United States is considering Bitcoin as a savings technology. A proposal to establish a strategic Bitcoin reserve is currently under discussion.

A co-founder of a payment platform stated that due to the new government taking office and changes in congressional seats, this proposal is gaining more support.

A well-known cryptographer believes that if the bill is passed, the price of Bitcoin may eventually exceed 1 million dollars.

Emerging markets adopt continuous growth

According to a report released by a blockchain analysis company in October 2024, global Crypto Assets activity is expected to increase and reach the peak of the 2021 bull market. The report shows that the index measuring the total value of global crypto activity rose to a new high of over 0.75 in the first quarter of 2024.

The report added that the peak in 2024 is attributed to the increase in crypto activities in countries at all income levels, while activities in high-income countries have decreased at the beginning of the year.

The company's executives pointed out that the increase in global activity is mainly due to the growing practical applications of stablecoins and the launch of Bitcoin ETFs in the United States. He stated: "Factors driving this trend include the U.S. launching Bitcoin ETFs, the application of stablecoins in emerging markets, and the significant increase in decentralized financial activities in Africa, Latin America, and Eastern Europe."

Emerging market countries such as India, Nigeria, and Indonesia are leading the adoption, with India ranking first in the global Crypto Assets adoption index.

In the Latin American region, El Salvador adopted Bitcoin as legal tender in September 2021, which brought the country over $31 million in revenue in the first three years. Despite criticism during the bear market, this decision is seen as an important step for the integration of Bitcoin into the global financial system.

A government blockchain expert stated that similar government initiatives may encourage other countries to adopt Bitcoin. He believes that if Bitcoin becomes the primary currency of national reserves, it could fundamentally change the global financial landscape and promote more decentralized and digital methods of economic stability.

Data shows that in the past year, Bitcoin's increase exceeded 131%, while gold only rose about 30%. Bitcoin may even become the next reserve asset after gold.

With Bitcoin breaking through $100,000 again, Crypto Assets investors remain optimistic about 2025. The clearer regulatory environment is seen as a potential catalyst for the rise in Crypto Assets prices. Analysts expect Bitcoin prices to possibly reach between $160,000 and $180,000 in 2025.