The cryptocurrency market has undergone astonishing developments 121.25% growth this year, with the only increase in Bitcoin 138.2%. But will this dynamic continue in 2025? A new report from Coin Shares suggests that the incoming Trump administration could make sweeping regulatory changes that could shape the future of crypto.
Here’s a look at the trends that could define the year to come.
Trump’s victory sparks pro-crypto optimism
The election of Donald Trumpan ardent defender of cryptocurrency, Kamala Harrisknown for its cautious approach, has changed the US political landscape in favor of the crypto industry. During his campaign, Trump pledged to protect the industry from what he called “overregulation.”
CoinShares predicts Trump is expected to take office on January 25, 2025– will bring major changes to crypto regulations. The report highlights projects aimed at supporting Bitcoin minersespecially those focused exclusively on Bitcoin operations.
The role of institutional investors
Currently, only 20% of assets under management (AUM) of Bitcoin ETFs are controlled by institutional investors. The report suggests that increased participation from these investors could lead to substantial market growth.
Rise of Bitcoin Yield Businesses
An important trend highlighted in the report is the growing use of Bitcoin as a means of payment. cash assets of the company. Companies like MicroStrategy, Block, Marathon DigitalAnd Metaplant are using Bitcoin in innovative ways. The report identifies three popular strategies:
- Hold for growth
- Yield farming
- Use derivative products
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Layer 2 solutions on the rise
Leading companies such as Amazon, ShopifyAnd Nike are making great strides to integrate cryptocurrencies into their payment systems. The report predicts that some of these giants could even add Bitcoin to their treasuries in the coming year.
The report also notes that Layer 2 blockchains are attracting more and more attention from institutional actors. Ethereum Pectra upgrade should improve efficiency, while validator customers like Frankendancer And Fire Dancer aim to improve the scalability and performance of Solana.
In conclusion, CoinShares predictions for 2025 highlight promising developments for the crypto sector, including Bitcoin, Ethereum, and Solana.
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FAQs
Increasing institutional investment in Bitcoin ETFs could drive massive growth, expanding the market beyond retail investors.
Companies like Amazon, Shopify and Nike are preparing to adopt crypto payments, with potential integration of Bitcoin cash.
Ethereum’s Pectra upgrade improves efficiency, while Solana validator clients like Frankendancer and Firedancer improve scalability.
