Regulatory Clarity to Drive Record Numbers of Crypto Investors
Due to increasing regulatory clarity and soaring cryptocurrency valuations, the global cryptocurrency industry is poised to gain mainstream and institutional recognition once again in 2025. In 2024, a record high was set. Over a month after Donald Trump won the U.S. presidential election, Bitcoin prices soared to an all-time high of $108,300 on December 17. Optimism among cryptocurrency investors is on the rise.

Industry experts note that with expectations of clearer regulations under the new Trump administration, the cryptocurrency industry may be set for another milestone year, including increased institutional adoption and a record number of global cryptocurrency investors.

Major Regulatory Developments in 2024
In 2024, the crypto industry experienced significant regulatory developments in some of the largest jurisdictions. In Europe, the Markets in Crypto-Assets Regulation (MiCA)—the world's first comprehensive crypto regulatory framework—came into full effect on December 30, providing comprehensive guidelines for crypto service providers.

In Asia, Singapore is emerging as the next crypto hub with its "risk-adjusted" regulation, which helped the country double the number of digital asset licenses issued annually in 2024. Singapore boasts 1,600 blockchain patents, 2,433 industry-related jobs, and 81 cryptocurrency exchanges. These numbers are impressive for a country with a population of less than 6 million.

Jonathan Levin, CEO of Chainalysis, said that these global regulatory developments will welcome more retail and institutional investors. Levin stated, "We can expect increased adoption from both institutional and retail investors next year, especially as these regulations bring greater transparency to the industry."

He added that these new regulations will also enhance industry trust, market integrity, and consumer protection, "making the industry more attractive to retail investors." Levin said that regulatory transparency will set a new record for the number of daily cryptocurrency users and will fuel the growth of institutional products such as exchange-traded funds (ETFs).

According to Triple-A's 2024 Crypto Ownership Report, as of July 12, there are an estimated 560 million cryptocurrency holders, accounting for 6.8% of the global population.

Pavlo Denysiuk, CEO of crypto payment company Lunu, said that based on current user growth trends, the number of cryptocurrency holders could triple over the next two years. Denysiuk said in a panel discussion at NFT Fest 2024, "This is where we are seeing more adoption across the board and in payments."

ETFs and Government BTC Reserve Plans to Drive Institutional Adoption
The U.S. spot Bitcoin ETF has already led to more institutional adoption by making it easier for traditional financial institutions to gain BTC exposure. Bitcoin ETFs have approached the $110 billion mark in less than a year since their launch, supporting analysts' predictions of a $200,000 Bitcoin peak in the 2025 cycle.

Chainalysis CEO Levin said this dynamic will pave the way for institutions to increasingly accept Bitcoin as an asset class: "This is likely to translate into sustained institutional interest and efforts by financial institutions and crypto firms to build the infrastructure and resilience needed to support investor demand."

A significant sign of Bitcoin's growing popularity is its increasing status as a savings technology in the U.S., thanks to the Bitcoin Bill advocated by Wyoming Senator Cynthia Lummis, which proposes the establishment of a strategic Bitcoin reserve.

Anastasija Plotnikova, co-founder and CEO of Fideum, said that the Bitcoin reserve proposal is gaining strong support due to Donald Trump's victory in the November 2024 election and the Republican majority in the Senate. Adam Back, co-founder and CEO of Blockstream, inventor of Hashcash, and one of the industry's most renowned cryptographers, said that if the Bitcoin Bill is accepted by U.S. lawmakers, Bitcoin prices could eventually exceed $1 million.

Crypto Adoption in Low-Income Countries Expected to Continue Growing
According to Chainalysis' Crypto Geography Report released in October 2024, cryptocurrency activity increased and reached the peak of the 2021 bull market in 2024. The report said that the Chainalysis Global Index, which measures the total value of global crypto activity, reached a new high above 0.75 in Q1 2024.

The report added that while crypto adoption in 2023 was primarily driven by lower-middle-income countries, the 2024 peak was attributed to increased crypto activity across countries of all income levels, with high-income countries seeing a decrease in crypto activity in early 2024.

Levin pointed out that the increase in global activity is mainly due to the growing real-world use cases for stablecoins and the debut of the U.S. Bitcoin ETF:

"There are many factors driving this trend, from the debut of the U.S. Bitcoin ETF to stablecoins supporting real-world use cases in low- and lower-middle-income countries, as well as significant increases in DeFi activity in sub-Saharan Africa, Latin America, and Eastern Europe."

Lower-middle-income countries such as India, Nigeria, and Indonesia led the way in adoption, with India ranking first in Chainalysis' Global Crypto Adoption Index.

In Latin America, El Salvador adopted Bitcoin as legal tender on September 7, 2021, which brought the country over $31 million in profits in the first three years. Despite the $31 million profit, President Nayib Bukele's decision was widely criticized after Bitcoin fell from its all-time high of $69,000 in November 2021 following the collapse of the FTX exchange. During the bear market, when Bitcoin fell to $16,000, El Salvador's Bitcoin holdings plummeted.

Anndy Lian, author and intergovernmental blockchain expert, said that El Salvador's decision to adopt Bitcoin is an important step in Bitcoin's increasing integration into the global financial system. Lian said similar government initiatives could promote Bitcoin adoption in other countries:

"As more countries consider this path, we may see a gradual redefinition of 'safe' reserve assets. If Bitcoin becomes a primary currency in national reserves, it could fundamentally change the global financial landscape, driving a more decentralized and digital approach to economic stability."

Bitcoin could even become the next reserve asset after gold. TradingView data shows that over the past year, Bitcoin has risen by over 131%, while gold prices have increased by about 30%.

Optimism among cryptocurrency investors remains high for 2025, especially after Bitcoin reclaimed $100,000 on January 6—two weeks before Donald Trump's inauguration on January 20. This is seen as a potential catalyst for cryptocurrency prices due to clearer regulations.

Bitcoin's expected rally in 2025 is set to attract more investor attention to the cryptocurrency industry, with price forecasts ranging from $160,000 to over $180,000.

Regulatory Clarity to Drive Record Numbers of Crypto Investors
Due to increasing regulatory clarity and soaring cryptocurrency valuations, the global cryptocurrency industry is poised to gain mainstream and institutional recognition once again in 2025. In 2024, a record high was set. Over a month after Donald Trump won the U.S. presidential election, Bitcoin prices soared to an all-time high of $108,300 on December 17. Optimism among cryptocurrency investors is on the rise.

Industry experts note that with expectations of clearer regulations under the new Trump administration, the cryptocurrency industry may be set for another milestone year, including increased institutional adoption and a record number of global cryptocurrency investors.

Major Regulatory Developments in 2024
In 2024, the crypto industry experienced significant regulatory developments in some of the largest jurisdictions. In Europe, the Markets in Crypto-Assets Regulation (MiCA)—the world's first comprehensive crypto regulatory framework—came into full effect on December 30, providing comprehensive guidelines for crypto service providers.

In Asia, Singapore is emerging as the next crypto hub with its "risk-adjusted" regulation, which helped the country double the number of digital asset licenses issued annually in 2024. Singapore boasts 1,600 blockchain patents, 2,433 industry-related jobs, and 81 cryptocurrency exchanges. These numbers are impressive for a country with a population of less than 6 million.

Jonathan Levin, CEO of Chainalysis, said that these global regulatory developments will welcome more retail and institutional investors. Levin stated, "We can expect increased adoption from both institutional and retail investors next year, especially as these regulations bring greater transparency to the industry."

He added that these new regulations will also enhance industry trust, market integrity, and consumer protection, "making the industry more attractive to retail investors." Levin said that regulatory transparency will set a new record for the number of daily cryptocurrency users and will fuel the growth of institutional products such as exchange-traded funds (ETFs).

According to Triple-A's 2024 Crypto Ownership Report, as of July 12, there are an estimated 560 million cryptocurrency holders, accounting for 6.8% of the global population.

Pavlo Denysiuk, CEO of crypto payment company Lunu, said that based on current user growth trends, the number of cryptocurrency holders could triple over the next two years. Denysiuk said in a panel discussion at NFT Fest 2024, "This is where we are seeing more adoption across the board and in payments."

ETFs and Government BTC Reserve Plans to Drive Institutional Adoption
The U.S. spot Bitcoin ETF has already led to more institutional adoption by making it easier for traditional financial institutions to gain BTC exposure. Bitcoin ETFs have approached the $110 billion mark in less than a year since their launch, supporting analysts' predictions of a $200,000 Bitcoin peak in the 2025 cycle.

Chainalysis CEO Levin said this dynamic will pave the way for institutions to increasingly accept Bitcoin as an asset class: "This is likely to translate into sustained institutional interest and efforts by financial institutions and crypto firms to build the infrastructure and resilience needed to support investor demand."

A significant sign of Bitcoin's growing popularity is its increasing status as a savings technology in the U.S., thanks to the Bitcoin Bill advocated by Wyoming Senator Cynthia Lummis, which proposes the establishment of a strategic Bitcoin reserve.

Anastasija Plotnikova, co-founder and CEO of Fideum, said that the Bitcoin reserve proposal is gaining strong support due to Donald Trump's victory in the November 2024 election and the Republican majority in the Senate. Adam Back, co-founder and CEO of Blockstream, inventor of Hashcash, and one of the industry's most renowned cryptographers, said that if the Bitcoin Bill is accepted by U.S. lawmakers, Bitcoin prices could eventually exceed $1 million.

Crypto Adoption in Low-Income Countries Expected to Continue Growing
According to Chainalysis' Crypto Geography Report released in October 2024, cryptocurrency activity increased and reached the peak of the 2021 bull market in 2024. The report said that the Chainalysis Global Index, which measures the total value of global crypto activity, reached a new high above 0.75 in Q1 2024.

The report added that while crypto adoption in 2023 was primarily driven by lower-middle-income countries, the 2024 peak was attributed to increased crypto activity across countries of all income levels, with high-income countries seeing a decrease in crypto activity in early 2024.

Levin pointed out that the increase in global activity is mainly due to the growing real-world use cases for stablecoins and the debut of the U.S. Bitcoin ETF:

"There are many factors driving this trend, from the debut of the U.S. Bitcoin ETF to stablecoins supporting real-world use cases in low- and lower-middle-income countries, as well as significant increases in DeFi activity in sub-Saharan Africa, Latin America, and Eastern Europe."

Lower-middle-income countries such as India, Nigeria, and Indonesia led the way in adoption, with India ranking first in Chainalysis' Global Crypto Adoption Index.

In Latin America, El Salvador adopted Bitcoin as legal tender on September 7, 2021, which brought the country over $31 million in profits in the first three years. Despite the $31 million profit, President Nayib Bukele's decision was widely criticized after Bitcoin fell from its all-time high of $69,000 in November 2021 following the collapse of the FTX exchange. During the bear market, when Bitcoin fell to $16,000, El Salvador's Bitcoin holdings plummeted.

Anndy Lian, author and intergovernmental blockchain expert, said that El Salvador's decision to adopt Bitcoin is an important step in Bitcoin's increasing integration into the global financial system. Lian said similar government initiatives could promote Bitcoin adoption in other countries:

"As more countries consider this path, we may see a gradual redefinition of 'safe' reserve assets. If Bitcoin becomes a primary currency in national reserves, it could fundamentally change the global financial landscape, driving a more decentralized and digital approach to economic stability."

Bitcoin could even become the next reserve asset after gold. TradingView data shows that over the past year, Bitcoin has risen by over 131%, while gold prices have increased by about 30%.

Optimism among cryptocurrency investors remains high for 2025, especially after Bitcoin reclaimed $100,000 on January 6—two weeks before Donald Trump's inauguration on January 20. This is seen as a potential catalyst for cryptocurrency prices due to clearer regulations.

Bitcoin's expected rally in 2025 is set to attract more investor attention to the cryptocurrency industry, with price forecasts ranging from $160,000 to over $180,000.