It’s been an extraordinary year for cryptocurrency, defined by Bitcoin meteoric rise. The world’s top cryptocurrency rose from below $40,000 in January, stabilized around $60,000 throughout the summer, then surged above $100,000 this fall.
The real turning point, of course, came with the US presidential election in November – an event that reshaped not only the political map but also the financial landscape.
Post-election enthusiasm, driven by pro-crypto policies and regulatory clarity, propelled bitcoin to a market capitalization of around $1.96 trillion.
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This is a remarkable achievement for an asset that only existed shortly after Satoshi Nakamoto published the famous white paper in October 2008.
One thing is clear: the crypto industry is evolving at a breakneck pace. The momentum is obvious. But uncertainties remain.
Looking ahead to 2025, the big question is: what’s next for bitcoin and the broader cryptocurrency ecosystem? Will the Bitcoin rally continue? Will altcoins challenge its dominance?
Let’s look at some of the key trends shaping the cryptographic landscape in 2025.
Bitcoin has momentum
Multiple secular forces are currently driving Bitcoin and the broader crypto market.
First of all, bitcoin is the standard in terms of trust, brand and liquidity. Federal Reserve Chairman Jerome Powell recently emphasized this pointcalling bitcoin “just like gold, except it’s virtual, it’s digital.”
This comparison says a lot about the growing legitimacy of bitcoin in the financial world.
Another transformative development is the advent of Bitcoin Spot ETF. These exchange-traded funds have rapidly gained traction since their introduction in early 2024, beating expectations by raising more than $60 billion in nine months.
According to Calamos Investments, Senior Vice President and Head of ETFs Matt Kaufman“iShares and Fidelity’s Spot Bitcoin ETFs were the fastest growing new product launches in history. This reflects the immense pent-up investor demand for this asset class.”
Another key element fueling bitcoin’s rise is its fixed supply: the total number of BTC is capped in the original source code at 21 million. This built-in scarcity reinforces value.
“A real-time supply shock occurs as Bitcoin’s fixed supply meets increasing demand,” notes Antoine RousseauHead of Brokerage Solutions Product Management at TradeStation. “Many holders also remain reluctant to sell at current levels.”
Investors should, however, remain cautious. Bitcoin remains a very volatile asset.
“People are chasing wins like it’s 2021 again,” says David MaterazziCEO of Galileo FX. “Bitcoin, meme stocks, etc. Everyone wants in on the action. It’s fun, I’ll give it that. But speculation works until it doesn’t.”
Ethereum could eclipse Bitcoin
Ethereum (ETH) is the second largest cryptocurrency by market capitalization, just behind Bitcoin.
What makes Ethereum compelling isn’t just its stature. Its role as a platform for creating decentralized applications (dApps), particularly in areas such as financial services, also sets it apart.
At its core is Ether, the native token of Ethereum, which serves as a fee for transactions on the platform.
“The institutional allocation disparity between Bitcoin and Ethereum is one of the most overlooked opportunities in the market today,” notes Jesper JohansenCEO and founder of Northstake. “When we look at the numbers – 6% of bitcoin in ETFs versus just 1.9% for Ethereum – we see a huge gap that is ripe for a correction.”
“Institutional investors are gradually recognizing that Ethereum is not just another digital asset,” Johansen observes. “It is a yield generating instrument. In 2025 we will start to see parity between ETH and BTC holdings.”
Johansen sees staking as a major driver of Ethereum’s upside potential. Staking allows investors to earn rewards or interest on their cryptocurrency holdings.
According to Johansen, the possible regulatory approval of US staking-focused ETFs could significantly boost Ethereum’s appeal.
“What makes staking so attractive,” he explains, “is its ability to generate returns that are often higher than those of traditional savings accounts or fixed income bonds.”
Prepare for Cryptocurrency IPOs
The meteoric rise of crypto stocks has been one of the most electrifying stories on Wall Street in 2024.
Take Global Coinbase (COIN), for example, whose shares have almost doubled. And MicroStrategy (MSTR) is up a staggering 500% year to date.
Still, there are few purely crypto stocks available to trade on traditional exchanges. But that could change in 2025 with a more welcoming initial public offering (IPO) environment.
President-elect Donald Trump’s choice of Paul Atkins to head the Securities and Exchange Commission (SEC) is expected to provide a significant boost to cryptocurrency IPOs.
Atkins is a crypto advocate who is expected to pave the way for smoother regulatory approval of new filings.
So which are the hottest upcoming IPOs to watch?
Circle Internet Financial, the second largest stablecoin issuer, is a strong contender. Stablecoins are cryptocurrencies linked to assets like the US dollar.
And Circle has already attracted market attention. In April 2022, the company raised $400 million, with backing from heavyweights like BlackRock and Fidelity Management and Research.
Another notable asset is Kraken, a cryptocurrency trading platform with a customer base exceeding 10 million. With projected revenues of at least $1 billion for 2024, this is a company poised to make waves in the public markets.
