Crypto is currently in one of its most promising trends, largely driven by the success of exchange-traded funds (ETF) offerings for Bitcoin (BTC). Here’s a look at recent developments in decentralised finance (DeFi) and why traders should be excited about what’s ahead in 2025:
Bitcoin pushes upwards after November 2024 correction
There was a short scare about Bitcoin price dropping to $91,000 at the start of November 2024 but it has quickly gone back up to $99,000 in two weeks. Reaching $100,000 has become all the more plausible for the world’s most valuable cryptocurrency.
Crypto has always hinged on Bitcoin’s success over the years and that continues today. It is the trailblazer of the industry and the rest of the community follow through. Right now, it’s looking great for BTC thanks to improvements in ETF offerings that are expected to gain even more traction in 2025.
Donald Trump’s pro-crypto platform has made its move
The United States is currently the biggest driving force to crypto’s success ever since the Securities and Exchange Commission (SEC) approved Bitcoin spot ETFs in January 2024. President Donald Trump leads the country to double down on digital asset investments through his pro-crypto platform.
One of the admin’s biggest moves is appointing pro-crypto advocate, Paul Atkins, as the new SEC chairman. Gary Gensler was the appointed SEC chairman who assumed office on 17th April 2021 under President Joe Biden and he still has until 2026 in his 5-year term. However, Gensler stated he would step down early on 20th January 2025.
The SEC has been strict against crypto in all of its forms for the majority of Gensler’s time as chairman. His stance is not compatible with the Trump administration’s advocacy for fast adoption of the robust, innovative capital markets of digital assets. Crypto investors can expect exchanges and various industry sectors to support crypto more rapidly in the coming years.
Solana (SOL) shine in 2024 but faces ETF setback
Solana showcases a remarkable price increase of 117% from January to December 2024, an astounding performance for the asset since it was launched in 2020. It has generated strong social dominance standing at 6.09% as it continues to generate interest on social media. Unfortunately, it won’t have an ETF soon as Gensler rejected its proposal on 6th December 2024.
Bloomberg ETF senior analyst Eric Balchunas and former digital asset strategy director of VanEck, Gabor Gurbacks, consider the gesture a ‘parting gift’ from Gensler. They also stated that they fully expect exchanges to file new Solana ETFs as soon as Atkins assumes office. Crypto traders are eagerly awaiting Gensler’s departure to try again with better chances.
Australia tightens crypto regulations
While the US looks toward greater crypto adoption, Australia also seeks to join the economic rise of the crypto industry but with a firmer grasp on licensing instead of becoming more welcoming. The Australian government stated on 4th December that crypto compliance is no longer optional for the country. They aim to force crypto firms to obtain financial licensing.
These statements were released in the 4th December consultation paper from the Australian Securities and Investment Commission (ASIC). It is a proposed guidance placing many digital assets under ‘financial products’. In doing so, firms are required to have an Australian Financial Services License (AFSL) and an Australian Market License to trade digital assets.
What’s next for the 1st quarter of 2025?
The state of DeFi is expected to continue expanding towards better adoption. Bitcoin remains at the forefront of the industry as it creeps closer to $100,000 than ever before. There’s also a growing excitement over Solana’s outstanding 2024 performance, giving confidence to ETF investors in its potential. For now, these are the biggest prospects in crypto coming into 2025. More exciting news is expected when Atkins finally becomes SEC chairman.
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