
The anticipated pro-crypto policies of the Trump administration are likely to significantly impact the crypto market.
Factors like increased institutional adoption, Bitcoin treasury reserves, etc, are poised to drive crypto market growth in 2025.
The report emphasizes the potential for significant growth in the Bitcoin market.
The cryptocurrency market has seen a staggering 121.25% growth this year, with Bitcoin alone surging 138.2%. But will this momentum continue in 2025? A new report by CoinShares suggests that the next Trump administration could bring sweeping regulatory changes that might shape the future of crypto.
Here’s a closer look at the trends that could define the year ahead.
Trump’s Win Sparks Pro-Crypto Optimism
The election of Donald Trump, a strong advocate for cryptocurrency, over Kamala Harris, known for her cautious approach, has shifted the U.S. political landscape in favor of the crypto industry. During his campaign, Trump vowed to protect the sector from what he called “overregulation.”
CoinShares predicts that Trump—set to take office on January 25, 2025—will bring major changes to crypto regulations. The report highlights plans to support Bitcoin miners, particularly those focused exclusively on Bitcoin operations.
Institutional Investors’s Role
Currently, only 20% of Bitcoin ETFs’ Assets Under Management (AUM) are controlled by institutional investors. The report suggests that increased participation from these investors could drive substantial growth in the market.
Rise of Bitcoin-Yielding Companies
An important trend highlighted in the report is the growing use of Bitcoin as a corporate treasury asset. Companies like MicroStrategy, Block, Marathon Digital, and Metaplant are using Bitcoin in innovative ways. The report identifies three popular strategies:
- Holding for Growth
- Yield Farming
- Using Derivatives
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Layer 2 Solutions on the Rise
Leading companies such as Amazon, Shopify, and Nike are making strides to integrate cryptocurrencies into their payment systems. The report forecasts that some of these giants might even add Bitcoin to their treasuries in the coming year.
The report also notes that Layer 2 blockchains are gaining more attention from institutional players. Ethereum’s Pectra Upgrade is expected to enhance efficiency, while validator clients like Frankendancer and Firedancer aim to improve Solana’s scalability and performance.
In conclusion, CoinShares’s 2025 predictions highlight promising developments for the crypto sector, particularly Bitcoin, Ethereum, and Solana.
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FAQs
Increased 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 Bitcoin treasury integration.
Ethereum’s Pectra Upgrade improves efficiency, while Solana’s validator clients like Frankendancer and Firedancer enhance scalability.