Citi Research predicts that the cryptocurrency market will continue its rapid growth in 2025, with stablecoins and digital asset exchange-traded funds (ETFs) playing pivotal roles in driving adoption.
The recent surge in Bitcoin’s price to $108K has set a positive tone for the upcoming year, with the firm forecasting even better performance for the digital asset market.
Citi’s analysis highlights 2024 as a landmark year for crypto, noting a 90% increase in the total market capitalization, which peaked at $3.73 trillion. This surge is attributed to the approval of spot Bitcoin and Ethereum ETFs by the SEC, which have drawn significant investment into the sector.
The analysis also indicates that the overall market trend remains bullish, with indicators like the Relative Strength Index (RSI) and the MACD showing sustained positive momentum.
In particular, Citi emphasized the growing influence of stablecoins, which currently have a market cap of $213 billion. The report suggests that expanding stablecoin use beyond trading could foster deeper integration with decentralized finance (DeFi) and broaden sector engagement.
Additionally, Citi analysts foresee a shift in cryptocurrency regulation, predicting that the focus will transition from enforcement actions to a more structured legislative approach under the leadership of a potential future administration.
Digital banking platform SoFi Technologies is making a strong return to the cryptocurrency space, relaunching its crypto trading and blockchain services after stepping away from the sector in late 2023.
Digital assets are gaining ground in corporate finance strategies, as more publicly traded companies embrace cryptocurrencies for treasury diversification.
Ripple has been dealt another legal blow after a federal judge rejected its attempt to ease court-imposed restrictions and penalties stemming from its long-standing battle with the U.S. Securities and Exchange Commission (SEC).
Stablecoins are failing where it matters most, says the Bank for International Settlements (BIS), which sharply criticized the asset class in its latest annual report.