The worst might be over for the cryptocurrency market now as Bitcoin is expected to continue its bullish stance heading into 2025 on the back of incoming US administration-wide support towards the cryptocurrency market.
According to Luno Asia Pacific General Manager Aaron Tang, the outlook for crypto in 2025 glows brighter now than ever as the US is expected to drive and set the tone for crypto policies.
"In fact, cryptocurrency has been on a trajectory towards maturity since the US approved spot Bitcoin ETF in early January 2024 as the landmark approval signalled acceptance and confidence in Bitcoin's role as a store of value.
"Furthermore, the US Securities and Exchange Commission's approval brought a positive shift in how traditional investment institutions viewed cryptocurrencies resulting in Bitcoin breaking its 2021 all-time high to settle at US$71,293 or RM336,887 in April 2024," Tang said to BusinessToday.
He added that the vocal support by the incoming Donald Trump administration about its ambitions of making US as the "crypto capital" and to build a Bitcoin strategic reserve, as well as the appointment of David Sacks as the White House Lead for artificial intelligence and crypto lends further weight to Bitcoin and the crypto market.
"If you look at the past couple of years, the US administration has been quite unsupportive of the crypto industry.
"However, all those changed when President-elect Trump and his advisory team openly voiced their support and intention to develop the crypto industry. Hence, from there we can sort of extrapolate that other countries and other financial institutions will see that the shift towards making Bitcoin and crypto mainstream is happening," Tang said.
Nevertheless, Tang mentioned that it is not fully known to what extent the incoming US administration will go towards realising its ambitions, even with several key appointments appearing crypto-friendly.
"Until there is clarity on what the US policies entail, I don't foresee countries immediately mirroring US policies, given that crypto regulation is already active in many countries worldwide.
"Regulation aside, the renewed interest and confidence in cryptocurrency has reignited the market and the projects behind the cryptocurrencies," Tang said to BusinessToday.
Meanwhile, according to a report by Bloomberg on Dec 19, Bitcoin dropped below US$100,000 as part of a broader retreat in speculative investments after the Federal Reserve signalled greater caution regarding future interest rate reductions.
The cryptocurrency declined by approximately 1%, reaching US$99,800 as of 10am on Dec 19, following a 5.1% drop on Dec 18 — its most significant retreat since September.
