Global ETF approvals, supply cuts, and Trump’s crypto push drove 2024’s surge
At a time when global markets weighed Donald Trump’s potential return as leader of the world’s largest economy, cryptocurrency traders celebrated his promise to transform the US into a crypto hub—a move expected to buoy the cryptocurrency market well into the coming year.
This year’s rally began in January with regulatory approval for spot Bitcoin and Ethereum exchange-traded funds (ETFs), followed by a halving in April that reduced the supply of new bitcoin. Finally, optimism surrounding crypto-friendly policies under the US President-elect drove the world’s largest cryptocurrency past the $100,000 mark in early December.
Since then, a slower pace of interest rate cuts by the US Federal Reserve and skepticism about Trump’s proposed Strategic Bitcoin Reserve (SBR) has prompted some profit booking. As the year closes, Bitcoin is up 125%, trading at around $96,000, while the total cryptocurrency market cap stands at $3.3 trillion.
With Trump set to take office in January, analysts see more legs to this rally—predicting Bitcoin reaching $150,000 or even $200,000 in 2025. “With global approvals for spot Bitcoin ETFs on the horizon, institutional investments could surpass $500 billion, reducing market volatility and boosting investor confidence, particularly in India,” said Sumit Gupta, co-founder of CoinDCX.
Gupta also expects numerous initial public offerings (IPOs) from crypto and Web3 companies in the US, which will further boost transparency and attract more institutional capital.
Global adoption is also expected to see a boom with Poland and Italy revisiting their heavy crypto tax policies and the EU making progress on its MiCA regulations; even China showed signs of a softened approach.
Rahul Pagidipati, CEO at ZebPay said: “With a massive rise in adoption on the global front and the incorporation of Bitcoin into institutional treasuries, crypto is now more mainstream than ever before. We expect 2025 to be an even better year than 2024 for the crypto market.”
As more countries take a pro-crypto stance, investors are scouting for the next big opportunity in the cryptocurrency market. Altcoins like Ethereum, XRP, and Solana continue to attract interest, while speculative plays in meme coins such as BTFD Coin and Baby DogeCoin are gaining traction for their potential explosive returns.
Data from CoinDCX shows a shift towards strategic investments, with 51.5% of investor portfolios in 2024 comprising Bitcoin and altcoins. The crypto platform predicts Bitcoin’s share in these portfolios to grow by 10-15% as investors focus on long-term value.
India’s role in the global crypto ecosystem is expanding, with the country now accounting for 11.8% of crypto developers and 5.4% of Web3 creators. However, regulatory ambiguity, high taxes, and security risks continue to deter retail investors. The Rs 2,000 crore cyberattack on WazirX in July, which wiped out 40% of investor wealth, remains a stark reminder of the risks.
Despite these hurdles, there is optimism for India’s regulatory landscape. Vishal Sacheendran, Binance’s head of regional markets, expressed hope that India will take the lead in developing progressive and comprehensive crypto regulations in 2025.
Balaji Srihari, vice-president at CoinSwitch said: “As we step into 2025, we hope this momentum continues. In 2024, India emerged as a global leader, ranking first in the Global Crypto Adoption Index. The year ahead promises even greater potential for growth.”