Sustaining the momentum with which the cryptocurrency market entered 2025 will be a challenge, according to a new report.
The 2025 edition of GlobalData’s Cryptocurrencies report outlines that many expect new all-time highs for the cryptocurrency market this year, driven variously by regulatory, institutional and cyclical factors. It notes that regulatory clarity has been provided by the introduction of the EU’s “gold standard” Markets in Crypto Assets regulation, while the pro-crypto stance of the new Trump administration in the US has been embodied by deregulation, the appointment of a “crypto-friendly” Securities and Exchange Commission chair and the body’s formation of a crypto working group to guide digital asset policy.
The report also details that institutional adoption has continued 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.” It notes that BlackRock’s bitcoin ETF became the fastest-growing ETF in history and that further approvals are expected in 2025.
Of the significance of crypto’s “cyclical nature”, meanwhile, the report states: “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.”
Despite these positive indications, GlobalData contends that uncertainties remain. It suggests that whether or not momentum is sustained may depend on whether the growing tranche of institutional investors helps to stabilise the market or “mirror the speculative tendencies of retail participants.”
The report explains: “Historically, crypto rallies have been followed by profit-taking phases that dampen speculative fervour. 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 fuelling 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.”
“Sustaining momentum of cryptocurrency in 2025 ‘will be a challenge’” was originally created and published by Verdict, a GlobalData owned brand.
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