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

As the regulatory environment becomes clearer and the valuation of Crypto Assets continues to rise, the global Crypto Assets industry is expected to regain mainstream and institutional favor by 2025.

In 2024, a historical new high was set, with the Bitcoin price reaching a peak of $108,300 on December 17. At this point, more than a month has passed since the announcement of the results of the U.S. presidential election, and the optimism among Crypto Assets investors is rising.

Industry experts point out that due to expectations that the new government will introduce clearer regulatory policies, the Crypto Assets industry may welcome another milestone year, including more institutional participation and a record high number of global Crypto Assets investors.

Regulatory clarity will drive a new high in Crypto Assets investors.

In 2024, the encryption industry has experienced significant regulatory progress in some major jurisdictions.

In Europe, as the world's first comprehensive Crypto Assets regulatory framework, the Markets in Crypto Assets Regulation ( MiCA ) came into full effect on December 30, providing comprehensive guidance for Crypto Assets service providers.

In Asia, Singapore is becoming the next Crypto Assets hub with its "risk-adjusted" regulatory strategy. This strategy helped the country double the number of digital asset licenses issued annually in 2024.

Despite having a population of fewer than 6 million, Singapore boasts 1,600 blockchain patents, 2,433 industry-related job positions, and 81 Crypto Assets exchanges, which are impressive figures.

The CEO of a data analytics company stated that these global regulatory developments will attract more retail and institutional investors. He expects the adoption rate among institutional and retail investors to rise next year, especially as these regulations bring greater transparency to the industry.

He added that the new regulations will also enhance industry trust, market integrity, and consumer protection, "which will make the industry more attractive to retail investors."

He pointed out that regulatory transparency will drive the daily number of Crypto Assets users to a record high and stimulate the growth of institutional products such as exchange-traded funds (ETF).

According to a report on crypto asset ownership released by a certain organization on July 12, 2024, there are approximately 560 million crypto asset holders worldwide, accounting for 6.8% of the global population.

The CEO of a crypto payment company stated that based on the current user growth trends, the number of Crypto Assets holders may double in the next two years. He noted during a panel discussion at the 2024 NFT conference: "This will drive broader adoption across various sectors and in payments."

ETF and government Bitcoin reserve programs will drive institutional adoption

The U.S. spot Bitcoin exchange-traded fund has facilitated greater institutional participation by making it easier for traditional financial institutions to access Bitcoin investments.

The Bitcoin ETF has approached a scale of 110 billion dollars in less than a year since its launch, supporting analysts' predictions that the Bitcoin cycle peak will reach 200,000 dollars in 2025.

The CEO of a certain analysis company stated that this trend will pave the way for institutions to increasingly accept Bitcoin as an asset class: "This is likely to translate into sustained institutional interest, as well as efforts by financial institutions and Crypto Assets companies to build the infrastructure and resilience needed to support investor demand."

As an important sign of the popularity of Bitcoin, the status of Bitcoin as a savings technology is increasingly rising in the United States, thanks to a bill proposed by a certain senator advocating for the "Bitcoin Act", which proposes the establishment of a strategic Bitcoin reserve.

The co-founder and CEO of a certain company stated that the Bitcoin reserve proposal is gaining strong support due to the newly elected president of the United States winning the November 2024 election and the Republican Party holding a majority in the Senate.

A renowned cryptographer in the industry stated that if the "Bitcoin Act" is accepted by U.S. lawmakers, the price of Bitcoin could eventually exceed $1 million.

The adoption of Crypto Assets in low-income countries is expected to continue growing

According to the "Crypto Assets Geography Report" published by a certain organization in October 2024, crypto asset activities will increase in 2024 and reach the peak levels of the 2021 bull market.

The report states that the index measuring the total value of global Crypto Assets activity has risen to a new high of over 0.75 in the first quarter of 2024.

The report adds that while the adoption of crypto assets in 2023 was primarily driven by low- and middle-income countries, the peak in 2024 is attributed to increased crypto activity across countries of all income levels, while high-income countries experienced a decrease in crypto activity at the beginning of 2024.

The CEO of a certain analysis company pointed out that the increase in global activity is mainly attributed to the growing use cases of stablecoins in the real world and the debut of Bitcoin ETFs in the United States: "There are many factors driving this trend, from the launch of Bitcoin ETFs in the United States to stablecoins supporting the use cases in the real world for low-income and lower-middle-income countries, as well as a significant increase in DeFi activities in Sub-Saharan Africa, Latin America, and Eastern Europe."

Countries with lower-middle incomes, such as India, Nigeria, and Indonesia, have led the adoption, with India ranking first in the global Crypto Assets adoption index.

In Latin America, El Salvador adopted Bitcoin as legal tender on September 7, 2021, which brought the country over $31 million in profit in the first three years.

Despite making considerable profits, Bitcoin fell from its historical high of $69,000 in November 2021 after the collapse of a certain exchange, and the president's decision was widely criticized. During the bear market, after Bitcoin dropped to $16,000, El Salvador's Bitcoin holdings were significantly reduced.

A certain intergovernmental blockchain expert stated that El Salvador's decision to adopt Bitcoin is an important step in Bitcoin's increasing integration into the global financial system. He believes that similar government initiatives could promote other countries' adoption of Bitcoin: "As more and more countries consider this path, we may see a gradual redefinition of 'safe' reserve assets. If Bitcoin becomes the primary currency of national reserves, it could fundamentally change the global financial landscape, driving more decentralized and digital approaches to economic stability."

Bitcoin may even become the next reserve asset after gold. Data shows that in the past year, Bitcoin has risen by more than 131%, while the price of gold has increased by about 30%.

Crypto Assets investors remain very optimistic about 2025, especially after Bitcoin broke through 100,000 dollars again on January 6. With clearer regulations, this is seen as a potential catalyst for the price of Crypto Assets.

The price surge of Bitcoin in 2025 is expected to attract more investors' attention to the Crypto Assets industry, with price predictions ranging from $160,000 to over $180,000.