With Trump in office, who will be the main adopters of cryptocurrencies in 2025?

Original title: "Top crypto adopters in 2025: Institutions, retail, low-income countries"

Author:Zoltan Vardai

Compiled by: Baishui, Golden Finance

The global cryptocurrency industry is expected to regain mainstream and institutional recognition in 2025 due to increasing regulatory clarity and soaring cryptocurrency valuations.

2024 hits all-time highs Cryptocurrency investor optimism is rising as Bitcoin price rose to an all-time high of $108,300 on December 17, just over a month after Donald Trump won the US presidential election.

Industry experts note that with expectations of clearer regulation from the new Trump administration, the cryptocurrency industry may be heading for another milestone year, including more institutional adoption and a record number of global cryptocurrency investors.

Regulatory clarity will see record number of cryptocurrency investors

In 2024, the crypto industry experienced significant regulatory developments in some of the largest jurisdictions.

In Europe, the Markets in Crypto-Assets Act (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 becoming the next crypto hub with its “risk-adjusted” regulation, which has helped the country double the number of digital asset licenses issued annually by 2024.

Singapore has 1,600 blockchain patents, 2,433 industry-related jobs and 81 cryptocurrency exchanges. For a country with a population of less than 6 million, these figures are staggering.

Chainalysis CEO Jonathan Levin said these global regulatory developments will usher in greater adoption by both retail and institutional investors.

“We can expect increased adoption by both institutional and retail investors next year, especially as these regulations bring greater transparency to the industry,” Levin said.

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

Levin said regulatory transparency would lead to record numbers of daily cryptocurrency users and spur the growth of institutional products such as exchange-traded funds (ETFs).

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

 _There are 560 million cryptocurrency holders in various countries around the world. Source: triple-a_ 

Pavlo Denysiuk, CEO of crypto payment company Lunu, said that based on current user growth, the number of cryptocurrency holders could triple in the next two years.

“That’s where we’re going to get more adoption everywhere and in payments,” Denysiuk said during a panel discussion at NFT Fest 2024.

ETFs and government BTC reserve plans will drive institutional adoption

U.S. spot Bitcoin exchange-traded funds have led to increased institutional adoption by making BTC investments more accessible to traditional financial institutions.

The Bitcoin ETF is approaching the $110 billion mark less than a year after its launch, supporting analysts’ predictions of a Bitcoin cycle peak of $200,000 in 2025.

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 continued institutional interest and efforts by financial institutions and crypto businesses to build the infrastructure and resiliency needed to support investor demand.”

In an important sign of Bitcoin's popularity, Bitcoin's status as a savings technology is growing in the United States, thanks to the Bitcoin Act championed by Wyoming Senator Cynthia Lummis. The bill proposes to establish a strategic Bitcoin reserve.

 _Lummis Bitcoin Bill. Source: Lummis.senate.gov_ 

Fideum co-founder and CEO Anastasija Plotnikova said that the Bitcoin reserve proposal is gaining strong support due to U.S. President-elect Donald Trump’s victory in the November 2024 election and the Republican Party’s majority in the Senate.

Adam Back, co-founder and CEO of Blockstream, inventor of Hashcash and one of the most famous cryptographers in the industry, said that if the Bitcoin Act is accepted by US lawmakers, the price of Bitcoin may eventually exceed $1 million.

Cryptocurrency adoption in low-income countries expected to continue

growing

According to Chainalysis’ Cryptocurrency Geography Report published in October 2024, cryptocurrency activity increased in 2024 and peaked at the 2021 bull market highs.

The report states that the Chainalysis Global Index, which measures the total value of global crypto activity, rose to a new high of over 0.75 in the first quarter of 2024.

 _A global index measuring the global value of crypto activity. Source: Chainalysis_ 

The report adds that while cryptocurrency adoption in 2023 will be driven primarily by low- and middle-income countries, the highs in 2024 are attributed to increased crypto activity in countries of all income levels, while high-income countries saw an increase in crypto activity in early 2024. reduce.

Levin noted that the increase in global activity is primarily attributable to growing real-world use cases for stablecoins and the debut of a U.S. Bitcoin ETF:

“There are many factors driving this trend, from the launch of Bitcoin ETFs in the United States to stablecoins supporting real-world use cases in low- and lower-middle-income countries, and a significant increase in DeFi activity in sub-Saharan Africa, Latin America and Eastern Europe. .

 _Global Cryptocurrency Adoption Index 2024. Source: Chainalysis_ 

Lower- and middle-income countries such as India, Nigeria and Indonesia lead adoption, with India ranking first in the Chainalysis Global Cryptocurrency Adoption Index.

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

Despite a $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, El Salvador’s Bitcoin holdings fell significantly after Bitcoin fell to $16,000.

Author and intergovernmental blockchain expert Anndy Lian said 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 spur Bitcoin adoption in other countries:

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

 _BTC and gold, 1 year chart. Source: Cointelegraph/TradingView_ 

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

Cryptocurrency investor optimism for 2025 remains high, especially after Bitcoin regained $100,000 on Jan. 6, two weeks before Donald Trump’s Jan. 20 inauguration — due to Greater regulatory clarity is seen as a potential catalyst for cryptocurrency prices.

Bitcoin’s 2025 rally is expected to attract more investors to the cryptocurrency industry, with price predictions ranging from $160,000 to over $180,000.