A recent report reveals that global cryptocurrency usage is approaching 7.51% of the population, projecting this could rise above 8% by 2025.
This growth reflects a shift in crypto from a niche market to a more accepted element of mainstream finance, largely driven by increasing institutional involvement.
This report from Matrixport emphasizes how financial giants, like BlackRock, have helped legitimize digital assets, boosting trust within traditional finance. 10x Research’s Markus Thielen commented that the introduction of new financial products tied to Bitcoin often leads to price increases, hinting that upcoming Bitcoin spot ETF options could spark renewed institutional interest.
Bitcoin’s significance as a store of value becomes particularly apparent during economic uncertainty. Thielen noted that historical economic challenges, including the European debt crisis and the depreciation of the yuan, have spurred demand for Bitcoin. He warned that rising U.S. debt could similarly drive interest in Bitcoin if economic conditions weaken.
Despite these positive trends, the report also highlights challenges to crypto adoption, such as regulatory hurdles, market volatility, and risks to retail investor security. Threats from hacks and scams remain prevalent, and the entry of institutional investors could amplify market fluctuations. This is especially true during times like this where the global economic and political climate is so uncertain.
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