Crypto's Future Hinges on Trump's Policies and Bitcoin ETFs: Citi's 2025 Outlook

6 Factors That Could Make or Break Crypto in 2025: Citi

The crypto industry has experienced a significant surge, largely attributed to Donald Trump's election victory. According to Markets Insider, several factors are poised to shape the future of cryptocurrencies by 2025. The introduction of bitcoin spot ETFs earlier this year marked a pivotal moment for investors, facilitating easier trading and contributing significantly to market growth. Additionally, central bank rate cuts have further fueled economic expansion.

A key development was Trump’s advocacy for cryptocurrency during his campaign and subsequent appointment of pro-crypto figures like Paul Atkins as SEC chair. This political support helped propel Bitcoin past $100,000 for the first time ever while boosting altcoins' momentum. As we look ahead to 2025, six critical elements will influence crypto prices: ETF activity, regulatory changes under Trump's administration favoring lighter regulation, stablecoin issuance challenges Tether's dominance with new entrants like Circle partnering with Binance; macroeconomic conditions supporting risky trades initially but potentially turning less favorable due to US policy uncertainty later on; continued inflows into spot ETFs driving growth further among multi-asset portfolio allocations where performance needs higher returns than equities, justifying even small percentages allocated towards cryptos such as Bitcoin, which remains volatile yet a valuable addition despite risks involved, according to analysts from Citi led by Alex Saunders, who expect these trends to continue shaping the landscape over the next few years.

How Bitcoin Predictions Played Out in 2024

Cathie Wood, Mike Novogratz, Michael Saylor, among others, made bold forecasts about Bitcoin's trajectory throughout last year, some proving more accurate than others, DLNews reports. VanEck predicted record highs continuing through the coming months. Noelle Acheson sees potential surpassing $125k soon, however, not all predictions hit the mark. Arthur Hayes, BitMEX co-founder, underestimated the rally, suggesting it would only reach around seventy thousand dollars by the end; instead, it surpassed the hundred thousand barrier in the fourth quarter. Tim Draper, venture capitalist, repeatedly adjusted expectations, ultimately falling short of his initial target of two fifty k, settling on one twenty K by December. Similar overshoots occurred with Matrixport and Standard Chartered both aiming slightly above the final outcome. Nonetheless, optimism persists within the community regarding long-term prospects, especially given increasing institutional interest and ongoing technological advancements across the sector; overall sentiment remains mixed, reflecting the unpredictable nature of markets and constantly evolving dynamics impacting valuations worldwide.

Bitcoin Vs Gold: New Era Of Reserve Assets?

Nations are reevaluating traditional financial stability pillars amidst inflationary pressures, sanctions, and sovereignty demands. Forbes explores whether decentralized digital currency could offer innovative solutions. El Salvador sparked a global debate by adopting it as legal tender, establishing a national reserve holding nearly six thousand bitcoins worth over half a billion dollars. Brazil proposed the Sovereign Strategic RESBit, allocating five percent of international reserves toward BTC. Discussions emerged in the United States over a strategic stockpile proposal, with President-elect Trump suggesting retaining acquired forfeitures to bolster security. Stelian Balta, HyperChain Capital founder, envisions a decade in which Bitcoin surpasses gold as the leading store of value, marking a trillion-dollar opportunity. Secure storage, clear frameworks, and balanced diversification are necessary to ensure success. Economist Matthew Ferranti highlights Bitcoin's resistance to sanctions and its advantage amid geopolitical uncertainties. MicroStrategy pioneered corporate level management, accumulating hundreds of thousands of coins as part of a strategy showcasing its cornerstone preservation agility and vision, integrating centers of simplicity and foresight, emphasizing infrastructure protocols, transparency, and integration to complement existing assets, forming dynamic portfolios. Blockchain governance and asset management are explored by the UK Treasury to transform investment landscapes, improving efficiency and accountability systems globally, inspiring confidence among stakeholders alike. (Source: Forbes)

XRP Forecasts & Ripple's Legal Victory Impact

Ripple XRP continues to be a focal point in conversations surrounding major price increases. The recent resolution of a longstanding lawsuit against the SEC has bolstered adoption. Altcoin Buzz notes the leadership transition expected in January, appointing Paul Atkins as chairman, signals an environment conducive to growth. The emergence of the RLUSD stablecoin, matched to the dollar and approved by NYDFS, strengthens the ecosystem, positioning it as a leader in cross-border payments, expanding in Asia. Independent Reserve exchange in Singapore calculated actions to increase its footprint and aggressive participation, developing ties with political players, including donations to an inaugural fund, highlighting efforts to confirm its place on the world scene. Optimistic projections range from ten to thirty dollars, with hypothetical estimates reaching as high as a hundred. Armando Pantoja, investor, cites technical charts showcasing growing appeal, and South Korea's ambitious aim to substitute SWIFT underscores its capacity to transform transactions and guarantee influence in the industry. Meanwhile, its current valuation is approximately two dollars, up sixty-two percent from the previous month. Recommended guides and tutorials are available for those interested in learning more about investing opportunities provided by the platform, with detailed information resources accessible online. (Source: Crypto News Flash)

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