Different stakeholders in the cryptocurrency segment are hopeful that the new year 2025 will see an increase in the adoption of cryptocurrencies going ahead. Globally the crypto segment had seen a remarkable phase in the year 2024 with the crypto market growing its market cap from $1.65 trillion to the current $3.4 trillion, fuelled by key developments like the ETF approvals, rate cuts from major central banks and the re-election of Donald Trump as the US president taking Bitcoin over a milestone of $100,000. More clarity is expected on the crypto front in the year 2025, both globally as well as in India.
“The outlook for 2025 is even more promising with pro-crypto leadership at the SEC, CFTC, and the White House working towards crypto-friendly regulations. With better regulatory clarity from the US, the institutional interest in crypto is set to get stronger bringing in higher inflows into the ETFs. On the other hand, countries like China, Canada, EU nations and the Middle East are easing restrictions, creating a healthy environment for wider crypto adoption. These developments create a strong pipeline for the crypto industry making 2025 a critical year in taking crypto investing mainstream. As adoption increases and the market matures, Bitcoin could potentially reach $150,000 by the end of the year, creating new milestones for the industry,” remarked Edul Patel, Co-founder and CEO of Mudrex.
This expert points out that 2024 saw groundbreaking developments such as the US SEC approving Bitcoin spot ETFs, signalling institutional acceptance, and Trump becoming the president and promising a more crypto-friendly environment in the US. Brazil elevated Bitcoin to the status of a strategic reserve, and China legalised Bitcoin ownership, marking a seismic shift in the global regulatory landscape.
Looking ahead to 2025, Trump's anticipated influence in the Senate could drive comprehensive crypto regulations in the US, likely setting a precedent for other nations to follow. The rollout of the EU’s MiCA framework next year is again poised to serve as a benchmark, providing guidance and exposing potential challenges for countries developing their regulatory structures.
“India's rapidly growing crypto adoption highlights the need for more clearer guidelines on taxation. We anticipate the government may address issues such as differentiating long-term and short-term tax treatment for crypto assets. There is also a strong case for reducing TDS rates from the current 1 per cent to 0.01 per cent and allowing gains to offset losses, creating a more conducive environment for investors and industry,” added Patel.
Experts point out that the crypto market has undergone significant changes this year, driven by increasing investor interest and a recovery in the values of virtual digital assets like Bitcoin. This momentum was further bolstered by the legalization of spot Bitcoin ETFs in the United States, along with growing institutional interest, which has extended to the altcoin market, signalling a broader shift. The debut of Bitcoin and Ether ETFs, coupled with rising institutional demand for diversified crypto exposure, has showcased the industry's resilience in overcoming the various challenges it faced in 2024.
“Looking ahead to 2025, the focus will be on increasing knowledge and trust within the crypto community, fostering stronger collaborations with authorities, and enhancing blockchain utility to address real-world challenges. The future of crypto is about more than just trading; it’s about building a decentralized, inclusive, and innovative digital ecosystem. We are hopeful that in 2025, India will take the lead in forming progressive and comprehensive crypto regulations. Recognizing the importance of India in the crypto space, we registered with the Financial Intelligence Unit – India,” said Vishal Sacheendran, Head of Regional Markets, Binance.
Interestingly, as market analysts point out, India is now home to 11.8 per cent of crypto developers and 5.4 per cent of Web3 creators worldwide. This year, crypto rose beyond its niche status, becoming a central talking point at a global scale, including the 2024 US presidential elections.
“ In 2024 Spot Bitcoin and Ethereum ETFs, institutional inflows, and the rise of altcoins like XRP reinforced the increasing confidence in crypto as an asset class. Stablecoins issuers, now among the top holders of US Treasury securities, are redefining liquidity and monetary policies, signalling their integration into traditional finance. The surge in tokenisation, blockchain applications, and advancements in cross-border payment systems promise to set the stage for transformative growth in 2025,” observed Rahul Pagidipati, CEO, ZebPay.
