Major shifts in 2024: What to expect from the cryptocurrency market in 2025

2024 was a historic year that shaped the world encryption Markets – be it massive institutional adoption, growing retail investor confidence in cryptocurrencies, and most importantly, the way 2024 has changed the outlook towards cryptocurrencies. Over the years, cryptocurrencies have moved from being a niche financial product to a major mainstream policy discussion in the United States, demonstrating their increasing influence on economies.

With strong foundations in place in 2024, the cryptocurrency market has a pipeline that shows promise to make 2025 a better year than 2024 for the cryptocurrency market. As we move into a new year, let’s take a look at some of the key events that got the cryptocurrency market to where it is today and what the next year holds for the digital asset space.

2024 and key milestones

Bitcoin ETFs have been approved before second Early this year marked a turning point for the cryptocurrency market, resulting in the highest institutional adoption ever of any asset. Institutional inflows saw a staggering $120 billion worth of inflows into Bitcoin ETFs in the first year alone, with BlackRock leading the charge with more than $54 billion in assets under management, indicating growing institutional confidence in the digital asset. Along with ETFs, companies like Accurate strategyBoth Hut 8 and Tesla own huge amounts of Bitcoin, with Bitcoin rising in value as a globalized asset.

The year 2024 has also changed the concept of cryptocurrencies globally. Pro-crypto Donald Trump’s appointments to key regulatory positions, such as the Securities and Exchange Commission and the Commodity Futures Trading Commission, have boosted investor confidence. Moreover, milestones such as Bitcoin surpassing $108,000 have influenced institutions, retail investors and even countries to see cryptocurrencies through a new lens leading countries like China, Morocco and Brazil to make major policy shifts, from legalizing cryptocurrencies to creating strategic reserves, making Highlights increased legitimacy. and the global appeal of the asset class. These developments have laid the foundation for its widespread adoption.

Looking to the future: What could 2025 hold?

New Cryptocurrency Investment Products Emergence: Next year will also see more diversified investment products in the cryptocurrency space. The Securities and Exchange Commission (SEC) recently approved hybrid funds for Bitcoin and Ethereum. With papers to launch ETFs for ripple As Solana has already introduced, we could see more tools driving institutional adoption in 2025. On the other hand, Vivek Ramaswamy’s introduction of Strive for “Bitcoin Bond ETFs” indicates strong institutional interest in cryptocurrency-related investment products. These products will also help in retail adoption allowing easy access to cryptocurrencies. Cryptocurrencies as a means of payment: We could also see cryptocurrencies being used as a means of payment in 2025. With many countries trying to reduce their dependence on the dollar, cryptocurrencies represent a viable means of payment given their globalized nature. Countries like Russia and El Salvador have already used Bitcoin and other tokens for international transactions, and 2025 will see new countries emerge to follow suit. Thailand, the southeastern country, is also considering starting a bitcoin payment project to enable tourists to transact using cryptocurrencies. On the other hand, BRICS members are also looking to create a new digital currency that could have major implications for the global financial environment. Cryptocurrencies Become Part of Investors’ Portfolio: Next year is expected to see a wave of regulatory clarity from major economies such as the US, EU, UAE and others, laying the foundation for increased retail participation in the cryptocurrency market. In addition, Blackrock recommended allocating 2% of investment portfolios to cryptocurrencies, indicating strong confidence in its potential. As countries adopt supportive policies and institutions call for balanced investment strategies, cryptocurrencies are set to become a common part of retail wallets, increasing their adoption at the grassroots level.

Real-world asset tokenization: We can also see an increase in the tokenization of real-world assets such as real estate, commodities, and even fine art, making them tradable on the blockchain. This could open up the retail audience to many use cases such as settlements, voting rights in board meetings, or profit sharing. Over time, with a standardized process to RoyInvestors can invest in real-world assets, diversify their portfolios, and earn returns from various instruments. On the other hand, traditional financial institutions can replace their legacy infrastructure with fast and efficient peer-to-peer systems.

More web3 startups emerging: Just as we saw a wave of payment gateways and discount brokers emerge during the blockchain, a maturing cryptocurrency market will give rise to more web3 startups that build products and services to better interact with the blockchain ecosystem. . 2025 could be the year we see many products being created with simpler interfaces and games for the web3 space all over the world. India has witnessed the creation of over 1,000 Web 3 startups in the last two years, and this number is expected to rise rapidly as more and more people enter the market.

AI and Cryptocurrency Synergy: AI-based tokens are expected to dominate in popularity. Given the increasing importance of AI in everyday life, tokens based on these AI programs are also seeing traction. Tech giants love MicrosoftUnlock Artificial Intelligence and perception It is also planning to launch tokens based on its own AI systems which shows the strong momentum of AI tokens in the coming days. As AI continues to play a larger role in the cryptocurrency ecosystem, cryptocurrencies from popular AI platforms like Virtuals Protocol have seen their market capitalization rise to $2.9 billion. This coupled with the rise of Altcoin could see AI tokens rally even further as we move into 2025.

Ready meals

The market capitalization of the cryptocurrency market has more than doubled, growing from $1.65 trillion to $3.3 trillion in 2024. However, this is just the beginning. As systems mature and mass adoption gains momentum, the potential for further growth is enormous. For everyday investors, 2025 presents an exciting opportunity to be part of this transformative asset class. While there is still work to be done by regulators and industry stakeholders, the cryptocurrency ecosystem is steadily evolving, comparable to traditional financial markets. This shift lays a solid foundation for broader adoption, increased stability, and long-term growth, making now the perfect time to embrace the cryptocurrency market.

(Author Idul Patel is the CEO and Co-Founder of Modrexa global platform for investing in cryptocurrencies. Views are private)

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