The year 2024, which began with the acceptance of spot Bitcoin ETFs in the US, ends with Donald Trump's presidential victory.
Bitcoin (BTC) and cryptocurrencies are leaving behind a record-breaking year, driven by major events such as ETF approval and Trump's election victory.
So What Awaits Bitcoin and Cryptocurrencies in 2025?
While there are many predictions on this subject, Citi analysts recently announced their expectations for 2025.
According to Business Insider, Citi analysts listed six factors that will determine the future of cryptocurrencies.
Citi analysts predict strong crypto growth in 2025 driven by Trump policies, rising ETF inflows, and stablecoin innovations.
“Bitcoin ETFs kicked off the sector’s rally in January. In September, a series of central bank rate cuts and other policies contributed to the rally, paving the way for a growth economy.
But no development was more critical for Bitcoin and cryptocurrencies than Donald Trump’s victory, which helped push Bitcoin past the $100,000 mark for the first time, sending altcoins soaring.
We expect this rise to continue in 2025.”
Analysts, who explained the 6 factors that will support the rise in 2025, put ETF inflows in the first place. Citi analysts stated that they expect spot Bitcoin ETF inflows to continue strongly in 2025 and that it will be the most important driving force of the rise.
Analysts said that apart from ETFs, the positive regulations of the Trump administration, the expanding stablecoin market, the macroeconomic environment, the widespread use of crypto, and the increasing portfolio allocation ratio will support the rise in BTC and crypto.
Citi analysts said the macroeconomic environment is likely to support risky assets such as cryptocurrencies through the first quarter of 2025.
Additionally, analysts noted that institutions will increase their allocations of Bitcoin and cryptocurrencies, adding that the increased allocation could boost the price of Bitcoin.
Analysts recently said that Trump, who is preparing to take office in January 2025, will implement policies that could significantly affect the crypto market, which would be positive for prices. “Trump promised to create a strategic Bitcoin reserve and create a more crypto-friendly regulatory environment,” they said.
*This is not investment advice.
