The world of bitcoin cryptocurrency is poised for a significant transformation in 2025, driven by improving regulatory clarity and friendlier policymakers. Following a year in which Bitcoin crossed the six-digit threshold, investors are eagerly anticipating a bull market this year. Recent developments, including President Donald Trump’s executive order on digital assets and the Securities and Exchange Commission’s (SEC) plan to revamp crypto rules, have set the stage for a promising year for cryptocurrencies.
Regulatory Clarity: A New Era for Cryptocurrencies
President Trump’s executive order, titled “Strengthening American Leadership in Digital Financial Technology,” affirms the crucial role played by the digital asset industry in fostering innovation and economic development in the US. The order establishes a working group to advise the White House on digital asset policies and evaluates the potential creation and maintenance of a national digital asset stockpile[3].
According to Geoff Kendrick, global head of digital assets research at Standard Chartered, “The dominance of institutional inflows to ETFs is likely to support Bitcoin and Ethereum performance.” Kendrick predicts prices reaching $200,000 and $10,000, respectively, by the end of the year[1].
SEC’s Plan to Revamp Crypto Rules
The SEC has unveiled a plan to revamp crypto rules, which is expected to open the door for more large institutions to provide custody solutions in the digital assets space. The plan includes revising or revoking SAB 121, an SEC bulletin that imposed strict requirements for publicly traded institutions that hold custody of digital assets on behalf of clients[2].
Ed Hindi, chief investment officer at crypto hedge fund Tyr Capital, predicts that Bitcoin will reach $250,000 this year but cautions that investors shouldn’t expect a straightforward rally. Hindi believes that Trump will turn some of his crypto rhetoric into action in his first 90 days in office, which should catapult prices[1].
Market Outlook: A Risk-On Year
The market backdrop for 2025 is expected to be supportive of cryptocurrencies, with lower rates in the US, eurozone, UK, and other major economies suggesting a risk-on year in global markets. The launch of spot bitcoin ETFs in the US and Hong Kong in 2024 helped propel $34.6 billion in net flows, and 2025 may see additional countries permit spot ETFs to a broader set of investors[2].
Seamus Rocca, CEO of legacy Bitcoin bank Xapo Bank, notes that “The market is keenly watching for progress and not just on regulatory clarity but also on how the [Trump] administration might view Bitcoin as a strategic reserve asset.” Rocca believes that 2025 will be an important year for cryptocurrencies[1].
Conclusion
The world of bitcoin cryptocurrency is on the cusp of a significant transformation, driven by improving regulatory clarity and friendlier policymakers. With President Trump’s executive order and the SEC’s plan to revamp crypto rules, the stage is set for a promising year for cryptocurrencies. As the market continues to evolve, investors are eagerly anticipating a bull market this year. With expert predictions of prices reaching new highs, 2025 is shaping up to be an exciting year for bitcoin cryptocurrency.
Key Points:
- Regulatory Clarity: President Trump’s executive order and the SEC’s plan to revamp crypto rules are expected to drive a bull market in cryptocurrencies.
- Market Outlook: Lower rates in major economies suggest a risk-on year in global markets, supportive of cryptocurrencies.
- Expert Predictions: Prices are expected to reach new highs, with predictions of $200,000 for Bitcoin and $10,000 for Ethereum by the end of the year.
- Institutional Inflows: The dominance of institutional inflows to ETFs is likely to support Bitcoin and Ethereum performance.
Sources:
[1] https://www.dlnews.com/articles/markets/bitcoin-and-ethereum-to-surge-this-year-analysts-say/
[2] https://www.invesco.com/nl/en/insights/digital-assets-bitcoin-bull-run.html
[3] https://www.bloomberg.com/news/newsletters/2025-01-23/crypto-market-shrugs-off-long-awaited-trump-us-executive-order-on-digital-assets
[4] https://techhq.com/2025/01/bitcoin-nears-record-high-as-sec-unveils-plan-to-revamp-crypto-rules/