In 2024, the cryptocurrency market experienced significant growth, with Bitcoin surpassing $100,000 for the first time. The cryptocurrency even briefly surpassed $108,000 on December 17. This surge was influenced by President-elect Donald Trump’s pro-crypto stance and the approval of Bitcoin exchange-traded funds (ETFs) in the U.S. Additionally, luxury brands began accepting crypto payments, reflecting broader adoption. But can the crypto outlook for 2025 continue to be that bright?

“We think the current investment case for bitcoin and other crypto assets remains strong. The confluence of institutional demand, infrastructure advancements, and a regulatory environment that will radically improve in 2025 is setting this asset class up for what may be its strongest year on record,” says Samir Kerbage, CIO at crypto asset management company Hashdex.

According to Kerbage, crypto is becoming an important portfolio consideration for investors; however, allocations should be strategically made with the long-term outlook in mind.

The second Trump presidency might also be a tailwind for crypto assets. “Many in the crypto industry are cautiously optimistic that the upcoming presidency will be more favourable toward crypto and digital assets compared to previous governments. They hope the new administration will open the doors for long-awaited industry regulations, making it possible for the industry to grow domestically,” explains Fidelity in their crypto outlook 2025.

Jurrien Timmer, Fidelity’s Director of Global Macro, sees two large elements to benefit crypto in the new year: fiscal policy (how the government spends money), and monetary policy (how the Fed operates).

“We’re going to have easier monetary policy and expansionary fiscal policy,” says Timmer. “And that could be a pretty good one-two punch in favour of digital assets, in my view.”

André Dragosch, European Head of Research at Bitwise (Europe), also underlines the role of the new US government in crypto developments. “The adoption of cryptoassets could be supercharged by the US government’s plans to adopt bitcoin as a strategic reserve asset. If the proposed ‘Bitcoin Bill‘ is enacted – calling on the U.S. government to buy and hold 1 million bitcoin — this could spark a global race for nation-state adoption of bitcoin and further accelerate global adoption rates,” says Dragosch.

VanEck is equally bullish for Bitcoin, saying its story is far from over. “It’s a narrative of growth, challenges and potential. By understanding the challenges and growth that this software network has already achieved, the industry is realising that Bitcoin is just an asset powered by the Internet and can appreciate the long-term potential it holds. Of course, it could have been another token or asset, but, so far, the crowd seems to have selected Bitcoin,” opines Jan van Eck, Chief Executive Officer at VanEck.