Forbes 2024 is a historic turning point for Bitcoin and the broader cryptocurrency ecosystem. It witnessed the launch of the first Bitcoin and Ethereum ETFs, marking true institutional adoption. Bitcoin broke the $100,000 milestone for the first time, while stablecoins continued to strengthen the dollar's global dominance.
In addition to this momentum, the winning U.S. presidential candidate will support Bitcoin as a core pillar of their campaign. Overall, these milestones solidify 2024 as the year the crypto industry proves itself to be an unstoppable force on the global stage. As the industry shifts focus to 2025, here are seven predictions for significant events that may occur next year.
1. The G7 or BRICS major countries will establish and announce strategic Bitcoin reserves. The proposal by the Trump administration to establish a Strategic Bitcoin Reserve (SBR) for the United States has sparked widespread debate and speculation. While adding Bitcoin to the U.S. Treasury's balance sheet would require significant political will and congressional approval, merely proposing such a measure has far-reaching implications.
By signaling the possibility of an SBR, the U.S. effectively invites other major countries to consider taking similar actions. These countries may feel compelled to take preemptive measures, potentially moving ahead of the U.S. to ensure strategic advantages in diversifying their national reserves. The limited supply of Bitcoin and its emerging role as a digital store of value may increase the urgency for countries to act swiftly.
The first major country to incorporate Bitcoin into its reserve strategy is now competing to diversify alongside traditional holdings like gold, foreign currencies, and sovereign bonds.
This move would not only solidify Bitcoin's status as a global reserve asset but could also reshape the dynamics of international finance, having profound implications for economic and geopolitical power structures. The establishment of strategic Bitcoin reserves by any leading economy could signal the dawn of a new era in sovereign wealth management.
2) Stablecoins will continue to grow, doubling to over $400 billion. Stablecoins have become one of the most successful mainstream use cases for cryptocurrencies, bridging the gap between traditional finance and the crypto ecosystem.
Globally, millions of people use stablecoins for remittance payments, daily transactions, and to hedge against local currency volatility by gaining relative stability against the dollar. In 2024, the circulating supply of stablecoins reached a historical high of $200 billion, dominated by market leaders Tether and Circle. These digital currencies rely on blockchain networks like Ethereum, Solana, and Tron to facilitate seamless, borderless transactions. Looking ahead, the growth of stablecoins is expected to accelerate in 2025, potentially doubling to over $400 billion. Stablecoin-specific legislation may pass, driving this growth, which could provide much-needed regulatory clarity and foster innovation in the industry.
U.S. regulators are increasingly recognizing the strategic importance of stablecoins in reinforcing the dollar's global dominance and solidifying its status as the world's reserve currency.
3) Bitcoin DeFi supported by L2 will become a dominant growth trend. Bitcoin is transcending its role as a store of value, with second-layer (L2) networks like Stacks, BOB, Babylon, and CoreDAO unlocking the potential for a thriving Bitcoin DeFi ecosystem.
These L2s enhance the scalability and programmability of Bitcoin, allowing decentralized finance (DeFi) applications to thrive on the most secure and decentralized blockchain. Looking towards 2025, Bitcoin DeFi is expected to experience exponential growth. The total locked value (TVL) of Bitcoin L2 is predicted to exceed the current $24 billion represented by wrapped Bitcoin derivatives, accounting for approximately 1.2% of Bitcoin's total supply.
Bitcoin's market capitalization stands at $2 trillion, and L2 networks will enable users to unlock this immense potential value more securely and efficiently, solidifying Bitcoin's position as a cornerstone of decentralized finance.
4) Bitcoin ETFs will continue to soar, with new cryptocurrency-focused ETFs emerging. The launch of spot Bitcoin ETFs marks a historic milestone, becoming the most successful ETF debut in history.
These ETFs attracted over $108 billion in managed assets in their first year, showcasing unparalleled demand from retail and institutional investors. Moreover, we may see the launch of weighted crypto index ETFs aimed at providing diversified exposure to the broader crypto market.
These indices may include top-performing assets like Bitcoin, Ethereum, and Solana, as well as emerging protocols, providing investors with a balanced portfolio to capture the growth potential of the entire ecosystem. These innovations will make crypto investments more accessible, efficient, and appealing to a broader range of investors, further driving capital into the space.
5) A 'Magnificent Seven' company will add Bitcoin to its balance sheet (besides Tesla). The Financial Accounting Standards Board (FASB) has introduced fair value accounting rules for cryptocurrencies, effective for fiscal years beginning after December 15, 2024.
These new standards require companies to report their holdings of cryptocurrencies, such as Bitcoin, at fair market value, capturing gains and losses in real-time as the market fluctuates. Previously, digital assets were classified as intangible assets, forcing companies to write down impairment on held assets while prohibiting the recognition of unrealized gains. This conservative approach often underestimated the true value of cryptocurrencies held on the company’s balance sheet.
The updated rules address these limitations, achieving more accurate financial reporting and making cryptocurrencies a more attractive asset for corporate treasuries. The seven giants—Apple, Microsoft, Google, Amazon, Nvidia, Tesla, and Meta—collectively hold over $600 billion in cash reserves, providing them with significant flexibility to allocate some capital to Bitcoin.
With enhanced accounting frameworks and increasing regulatory clarity, one of these tech giants, besides Tesla, is highly likely to add Bitcoin to its balance sheet. As new accounting rules take effect and corporate treasuries adapt, Bitcoin may become a key reserve asset for the world's largest tech companies, further legitimizing its role in the global financial system.
6) The total market capitalization of cryptocurrencies will exceed $8 trillion. In 2024, the total market capitalization of cryptocurrencies surged to a historical high of $3.8 trillion, encompassing a wide range of use cases including Bitcoin as a store of value, stablecoins, DeFi, NFTs, meme coins, GameFi, SocialFi, and more. This explosive growth reflects the industry's expanding influence and the increasing adoption of blockchain-based solutions across various sectors. By 2025, a wave of developer talent will accelerate into the crypto ecosystem, driving the creation of new applications that achieve product-market fit and attract millions of additional users. This wave of innovation may yield breakthrough decentralized applications (dApps) in fields such as artificial intelligence (AI), decentralized finance (DeFi), decentralized physical infrastructure networks (DePIN), and other emerging areas still in their infancy. These transformative dApps provide tangible utility and address real-world problems, prompting further adoption and economic activity within the ecosystem. As the user base expands and capital flows into the space, asset prices will also rise, pushing the overall market capitalization to unprecedented heights. With this momentum, the cryptocurrency market is poised to exceed $8 trillion, marking continued growth and innovation in the industry.
7) The revival of crypto startups, and the U.S. will re-emerge as a global crypto powerhouse. The U.S. crypto industry stands on the brink of a transformative revival, creating an environment where blockchain developers and entrepreneurs can thrive without undue restrictions by restoring equitable access to banking infrastructure. Regulatory clarity: Changes in SEC leadership and balanced regulatory policies will reduce uncertainty for startups, fostering a more predictable environment for innovation. Access to capital and resources: As banking barriers are lifted, crypto companies will find it easier to access capital markets and traditional financial services, enabling sustainable growth. Talent and entrepreneurship: Reduced regulatory hostility is expected to attract top blockchain developers and entrepreneurs back to the U.S., invigorating the ecosystem.
