2024 has been a successful year for the crypto industry. This year, the Securities and Exchange Commission approved Bitcoin EFTs in the US. The SEC also approved Ethereum ETFs in July 2024. These developments and many others allow crypto investors to head into 2025 with much optimism. In this article, we’ll look at some of the most significant driving trends to expect in the crypto industry in 2025.
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Expect a Bull Run in 2025
The approval of Bitcoin ETFs will undoubtedly have some ripple effects in 2025. Immediately after rumours emerged that the SEC was planning to approve these exchange traded funds, Bitcoin’s value surged by 150% heading into 2025. This digital coin started the year at $44,000 and was trading at $65,000 when writing this post.
According to a survey published by Finder.com, most analysts believe BTC could soar above $87,000 by the end of 2024. The study also reveals that experts are putting their money on the value to hit $127,000 by the end of 2025. In fact, one of the panelists advises investors to hold onto their coins and anticipate a windfall. That could be dangerous!
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AI and Cryptocurrency Merger
AI and Blockchain look like the perfect twins. Today, 90+ AI (Artificial Intelligence) tokens are circulating to support AI projects. These tokens provide seamless transactions on AI platforms like decentralized marketplaces and AI-powered trading platforms. They also help confer governance rights to cryptocurrency holders.
2025 could also see the widespread use of AI trading bots. More investors will use these AI-powered systems to navigate and mitigate the complexities of the crypto market. AI trading bots can analyze vast amounts of data and historical trends before providing real-time information. They can also help in automating routine tasks like trade execution.
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Cryptocurrency Adoption to Soar
Cryptocurrency usage has soared, with some touting it as a possible replacement for traditional payments. Digital coins are gradually being accepted by most businesses, especially in the finance, supply chain, and gaming sectors. You can use these currencies to play Blockchain-based games and enjoy swift transactions at most new casinos online UK. It’s undoubtable that the adoption rate is expanding.
Below are a few stats to back up this prediction:
- There are 833+ million crypto investors in 2024.
- The number of crypto investors could hit 992+ million in 2024.
- Cryptocurrency user count surged by 24.34% between 2023 and 2024.
- The crypto market value will grow by $20.12 billion in 2029.
- The crypto industry grew by 178.84% between 2018 and 2024.
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Cryptocurrency Crime to Decline
Multiple ugly controversies have dogged the cryptocurrency industry in the past. This industry has seen everything, from industry-shaking scams such as OneCoin to coins disappearing mysteriously from consumer wallets.
Yet, stats show that crypto scams are declining. CoinAnalysis recently reported that illicit crypto activities declined by 19.60% between 2023 and 2024. These stats prove that many people are beginning to embrace legitimate use of cryptos.
However, the bad news is that stolen crypto funds almost doubled to $1.58 billion between 2023 and 2024. With such scary numbers in mind, it’s vital to protect yourself when using cryptos online. Below are a few tips provided by Kaspersky:
- Prevent phishing scams by crosschecking URLs and avoiding suspicious links.
- Don’t share your crypto wallet’s private keys with anyone.
- Research deeply about cryptocurrency projects before investing.
- Create a complex passcode for your wallet.
- Use two-factor authentication on your wallet for added security.
- Back up your online crypto wallet to access your coins in case of a damaged device.
- Withdraw cryptocurrencies from your wallet as soon as possible.
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Increased Cryptocurrency Regulation
2024 could be the year when authorities tighten the noose on crypto investment. This is because the industry has learnt from its past experiences. For example, FTX once had a value of $32 billion before collapsing within days in November 2022. BlockFi also fell from grace to grass after facing share issues and fines in 2022.
Back then, there wasn’t much regulation.
Today, authorities are making up for the lost time by tightening their regulatory enforcement. The SEC is a great example. This market regulator defines cryptocurrencies as securities, making them more like a stock exchange. As a result, the SEC requires all exchanges to register before they can trade cryptos. Other markets could follow this trend in 2025.
Conclusion
These are our bold predictions of what we expect to happen in the crypto industry. However, it’s important to note that the crypto sector is highly volatile. Even the slightest negativity could see the value of top cryptos tumbling down in 2025. Nevertheless, the cryptocurrency market could undergo immense transformation next year. Let’s wait and see!
