The crypto market entered 2025 with strong momentum. Many expect a rally to new all-time highs, driven by regulatory, institutional, and cyclical factors. Regulatory clarity has significantly improved. The EU’s Markets in Crypto Assets (MiCA) regulation has set a global standard for crypto regulation. In the US, the Trump administration’s stance is markedly pro-crypto. Already, it has rescinded SAB 121 (which discouraged banks from offering crypto custody), appointed a crypto-friendly Securities and Exchange Commission (SEC) chair, and formed a crypto working group to guide digital asset policy.

Scope

This report provides an overview of the cryptocurrencies theme.

It identifies the key trends impacting growth of the theme over the next 12 to 24 months, split into three categories: technology trends, macroeconomic trends, and regulatory trends.

It includes a comprehensive industry overview and analysis of the key trends in GlobalData's proprietary signals data, including M&As, venture financing, patents, company filings, and hiring.

The detailed value chain is divided into four layers: infrastructure, software, application, and services.

Key Highlights

Institutional adoption continues to grow, driven by the SEC’s approval of US spot bitcoin and ether exchange-traded funds (ETFs) in 2024, which further integrated crypto into mainstream finance. BlackRock’s bitcoin ETF became the fastest-growing ETF in history, with further approvals expected in 2025, including for solana and XRP. Beyond ETFs, fintechs like Robinhood and PayPal have expanded crypto offerings, focusing on stablecoins and trading services. Meanwhile, crypto’s cyclical nature is also relevant. Market peaks have historically occurred 12 to 18 months after a bitcoin halving event. If past cycles hold, late 2025 could mark a new market high.

While 2025 may set new records, sustaining momentum will be a challenge. Historically, crypto rallies have been followed by profit-taking phases that dampen speculative fervor. External risks—including macroeconomic shifts or overly lenient regulation enabling illicit activities—could test market resilience. While the macroeconomic landscape has improved, it remains uncertain. The crypto market has reacted adversely to shifting expectations of interest rate cuts and Trump’s tariffs, underscoring its status as a risk-on asset. While fueling short-term optimism, the Trump administration’s pro-crypto stance raises long-term concerns. The launch of Trump-themed meme coins and Trump Media’s expansion into crypto have drawn scrutiny. Whether 2025’s potential bull run results in another cyclical downturn or drives structural changes toward crypto’s maturation may hinge on institutional investors—whether they help stabilize the market or mirror the speculative tendencies of retail participants.

Reasons to Buy

The crypto market is immature and constantly evolving. This report is the perfect introduction to a controversial and fast-moving theme. It will help readers make sense of the technology behind cryptocurrencies, understand the potential implications of the theme, avoid the pitfalls, and identify the leading players.