Cryptocurrency Market Outlook Remains Bullish as Bitcoin (BTC) Price Nears $100K

As cryptocurrency traders take a breather at the end of year, the overall outlook for the sector remains highly bullish, experts say.

Cryptocurrency had a banner year in 2024, with the total market cap increasing by 127 per cent to reach $3.9 trillion, according to research from crypto.com.

The number of crypto owners also surged, reaching 653 million as of November 2024.

Depending on market conditions, the number of global crypto owners is likely to reach 750-900 million in 2025, crypto.com predicts.

“In 2025, we expect cryptocurrency to make strong inroads to becoming a mainstream asset class within the traditional finance ecosystem. This is in part due to a pivotal shift for Bitcoin in 2024, from a digital currency with a 15-year history for cryptocurrency enthusiasts to an institutional-grade asset, tradeable as a regulated financial product.

Bitcoin reaching $100,000 in 2024 was not just an exciting moment for Bitcoin, but a milestone moment for the entire crypto industry — once again proving its resilience,” said Tarik Erk, General Manager Middle East & Africa, crypto.com.

Cryptocurrencies have been boosted by the re-election of Donald Trump, with markets feeling optimistic about his support for digital assets.

Trump aims to make the US a crypto capital and wants to create a Bitcoin reserve.

He also plans to ease regulations on the crypto market, which could create further growth opportunities for the asset.

His approach, along with the Republican Party’s pro-crypto stance, signals a shift toward greater acceptance of cryptocurrencies, said Vijay Valecha, chief investment officer, Century Financial.

Many expect that by 2025, new laws will modernise the US financial system to better include cryptocurrencies.

One of these could give the Commodity Futures Trading Commission (CFTC) more power to regulate crypto, reducing the SEC’s role.

“This shift could be good for the future of cryptocurrencies and for companies involved in the crypto industry. If the SEC eases its strict rules on cryptocurrencies, it could make things easier for crypto investors and businesses,” said Valecha.

Since Bitcoin ETFs launched in January, they’ve already seen over $500 billion in daily trading volume and $36 billion in net inflows, with BlackRock’s iShares Bitcoin Trust being a standout success.

“Bitcoin ETFs are expected to attract more flows in 2025 for three key reasons: the first years are typically the slowest for ETFs, large powerhouses like Morgan Stanley, Merrill Lynch, etc. are expected to come up with their own ETFs, and investors will gradually increase their allocation,” said Valecha.

The launch of Bitcoin ETF options this year is a big step for cryptocurrencies as it may lead to reduced volatility, boosting investor confidence and creating positive price momentum.

“As more crypto ETFs, beyond Bitcoin and Ether, are expected to launch under Trump’s administration, the category could see even larger amounts of assets under management (AUM), especially with growing investor interest, a more stable trading environment, and lower absolute values associated with ETFs,” said Valecha.

In 2025, the industry will watch a few key areas: SAB 121, stablecoins, greater regulatory openness to digital asset innovation, and movement around a US strategic Bitcoin reserve.

Crypto mining companies like Riot, Mara, Coinbase, and CLSK are also expected to benefit from proposed deregulations, analysts say.

Increased adoption of cryptocurrencies is expected by corporations that could use this technology to innovate and establish their position in the market.

“This can be seen from MicroStrategy Inc., the largest corporate holder of Bitcoin, which has integrated crypto into its portfolio and could potentially merge the financial technology in the gaming world,” said Valecha.

Further, decentralised artificial intelligence (deAI) is set to reshape how AI operates by leveraging blockchain to distribute computation and data storage across a decentralised network.

The integration of deAI with blockchain is expected to unlock potential across industries like healthcare, finance and logistics.

Multiple Central Bank Digital Currency (CBDC) projects are being introduced to modernise payment systems and promote financial inclusion.

This could further benefit the crypto sector and create promising growth avenues.

Industry growth and adoption will continue to be bolstered by the ever-increasing ability of crypto to be a form of payment for everyday goods and services and the increase of traditional banking systems using blockchain technology and innovations, such as stablecoins, to create greater efficiencies in areas like settlements and cross-border payments.

“Looking ahead, the potential approval of ETFs for other cryptocurrencies, expected pro-crypto policies under President Donald Trump’s incoming administration and discussions being had in many countries around establishing bitcoin reserves could further encourage adoption,” said Erk.

More jurisdictions globally are focussed on designing effective regulation which enhances consumer and institutional trust in the industry.

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