Many analysts this year claimed that the cryptocurrency industry already got what it wanted this 2024, and that is with the significant performance of the blockchain that led to massive all-time highs. However, analysts from a US multinational banking company, Citi, claimed that there is more to expect from next year, predicting that there will be a massive surge come 2025 for the crypto industry.
Of course, one of the biggest names tied to this massive crypto performance is none other than President-elect Donald Trump, best known for his support for the industry and the upcoming "future" for the United States.
Citi Predicts Crypto Surge is Coming This 2025, After 2024 Rally
Citi analysts led by Alex Saunders recently shared their predictions for the upcoming year, claiming that the cryptocurrency industry will still see the massive performance it enjoyed before 2024 ended by next year. There are a lot of factors that are influencing this, and these pivotal factors include Donald Trump's win during the previous national elections, as well as the massive performance of the top coins.
According to the Citi analysts, there have been flows that led to massive crypto returns this year, and they are expecting it to continue by 2025, a year that many crypto fans and investors are also looking forward to.
However, the analysts still noted that there are risks in the crypto industry, especially with Bitcoin, according to the team at Citi (via Bitcoin.com), "For a 5% allocation, performance needs to be higher – double-digits using the S&P's longer-term risk-reward trade-off, or 21% using recent returns where the high reward/risk implies investors need to be compensated well for taking additional risks."
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Donald Trump, ETF Inflows, and More to Drive Crypto Up
Citi acknowledged how Trump's win was a pivotal moment for the crypto industry, including its top-performing coin, Bitcoin, noting that because of this late 2024 performance, its valuation almost doubled in size. Citi noted that the primary factor for crypto's A plus performance was Ethereum exchange-traded funds (ETFs) and Spot Bitcoin trading that began earlier this year.
The analysts suggested that stablecoin adoption could help beyond trading, claiming that it could enhance DeFi (decentralized finance) and more engagement in the industry.
Crypto's Massive Performance in Q4 2024
This 2024 was a surreal year for cryptocurrency, particularly as last January, it was only on its way to recuperating from its losses after a disastrous 2023 which resulted in the top coin, BTC, dropping to dangerous levels. However, fast forward more than a year later, Bitcoin made a humongous climb toward the $100,000 valuation where the titan set a new all-time high of almost $30,000 more than its previous record.
One of the main reasons behind this was because of President-elect Trump who throughout his campaign in the 2024 US Presidential elections, claimed that crypto will see support and regulations to have it operate with ease in the country. Alongside this, Trump also named several personalities to join him in creating a crypto future for the US, and this includes naming a new AI and crypto 'czar,' as well as politicians to join the cause.
While Trump is yet to be sworn into position for his grand return to the White House, he already claimed that he is removing officials that are against the said crypto future, and this includes current SEC chair, Gary Gensler. The move towards the crypto future is ongoing with Trump not yet in position, but Citi predicts that the industry will see more surge in the future, especially by 2025, which is a new beginning for decentralized finance.
