Market players cite US president-elect Donald Trump’s election win as a key catalyst for the promising outlook from investors and the global crypto industry
In the last six weeks of 2024, a notable bullish sentiment in the digital assets market suggests that the momentum could carry on into 2025. Industry experts attribute this to several factors, including the election of Donald Trump as president-elect of the United States. His pro-crypto stance is expected to catalyze both investor confidence and innovation in the global crypto market, including areas such as tokenisation and cross-border payments.
With Bitcoin’s price surging past the US$100,000 mark in December, traders are optimistic about future growth. Analysts believe institutional investments will continue, helping Bitcoin’s value potentially hit US$200,000 by the end of 2025. However, despite Bitcoin’s rally, there is rising interest in altcoins, particularly stablecoins, due to their use in payments and remittances.
Industry players are also upbeat about the tokenisation of real-world assets like bonds and commodities. Companies are looking for more efficient ways to digitise and trade these assets, with regulations evolving to support such innovations. Notably, stablecoins have reached a market cap of US$190 billion, and the increasing adoption of these digital currencies is fueling further growth.
While the market is flourishing, interoperability between different blockchain networks remains a major challenge. Experts stress the importance of building the right infrastructure to support this growth and allow for seamless connectivity between traditional finance and decentralized finance (DeFi).
Looking ahead, industry leaders are hopeful for continued advancements in DeFi and the broader crypto ecosystem, but acknowledge the need for regulation and education to keep pace with the rapid developments in the space.
