The permanent cryptocurrency market has appeared in national headlines late last year as the price of Bitcoin-the most famous cryptocentral- climbed to $ 100,000 For the first time.
While the price of Bitcoin has received a lot of stamp in the last few months, the crypto market has largely failed a few years before, leading some to consider it bubbleSimilar to Dotcom's boom at the end of the century.
Today, 17% of adults in the United States have cryptocurrency, according to A recent study for Pew Research Center. This study also found that 63% of Americans say they have little or without confidence in current cryptocurrency investment methods.
Namely, younger generations can see the market differently. More than half of the US General Zers report, with cryptocurrency as their top choice, according to 2023 research by Finra. General Z had the highest risk tolerance, and the study found that most investors in General Z have above average risk tolerance.
With a new administration in the White House and cryptocurrencies like Bitcoin we still relyed at all times, we turned to experts to get a temperature check for what is next for crypto. Here's what we learned.
Will the government's stance on crypto change this year?
Historically, the federal government, especially the SEC, is cautious about the cryptocurrency industry. Under Gary Gensler, former SEC President SEC has filed high -profile lawsuits against crypto companies such as Coinbase And Cracked.
The last few years have also noticed countless Cryptocurrency fraudthe collapse of Luna signas well FTX's fall (Former crypto exchange) and subsequent The penalty to his founder, Sam Bankman-Fried. With a new administration of power, there is probably a change in the federal government's stance. Reuters reports That incomprehensible SEC leadership has been set to renovate cryptocurrency policies.
The change can be spread to other agencies, such as the CFTC Futures Trading Commission, which regulates financial derivatives markets (ie futures and options). Carolina Fam, who advocated clearer crypto rules, was Recently named Acting CFTC chairAnd David Sachs has already been tapped as “the White House AI and Crypto King”.
“These (incoming federal officials) are much more cryptocurrencies than current regulatory agencies,” said Cnet Cesare Fracassi, Fintech and Blockchain Research Laboratory at the Faculty of Business at McCombs. “So, we should definitely expect a different approach to crypto.”
Can the crypto market see new book laws?
The federal framework for cryptocurrency laws was dark, with many rules different from state to state. This was a criticism that companies for cryptocurrencies cited in response to lawsuits.
Christian Catalini, founder of the cryptocurrency lab MIT and research scientist at MIT Sloan school, says the crypto industry needs new rules to protect people from bad actors.
“Many of the most serious companies and startups in this area are looking for regulation for a while,” Catalini said. “Due to lack of clear rules, bad actors have managed to interfere with the good ones – it has led to very bad situations such as FTX melting.”
In 2022, FTX went bankrupt. At the same time, many clients found that they were unable to withdraw funds from crypto -exchange. Soon it became clear that billions of dollars were missing. Sam Bankman-Fried, the founder of FTX, is currently A 25 -year punishment for fraud.
Lack of regulation is one of the reasons that crypto remains an unpredictable investment vehicle. Catalini hopes that with new legislation, the regulatory gray area will become clearer so that crypto can “turn the page of excitement and speculation and become more useful”.
Should you invest in the crypto market in 2025?
While most Americans see cryptocurrency As a speculative asset With the potential to increase their money, changes in wild prices make cryptocurrency investment risky at best. The industry is also complex, which has provided fruitful land for cheaters. You need to be extra valuable if you decide to invest in crypto.
“Cryptocurrency tends to be more unstable than other investments and can be influenced by unpredictable external events that influence confidence in the crypto ecosystem,” Alex Mihaka, Vice President of Investment Research at WealthFront, told CNET.
Mihaka cited a recent rise in crypto prices after President Trump's elections as a key example of this instability. Expectations that the new administration will bring more crypto-friendly access was enough to send prices to be rising, he said.
Investing directly into cryptocurrency can lead to great victories or losses, but experts say you speculate when investing in these digital currencies. There are no guarantees.
That advice remains true even if you invest in an exchange fund based on the price of Bitcoin or other digital assets. Crypto ETF became popular with investors last year. BlackRock's Ishares Bitcoin's confidence destroyed previous ETF records when it is debuted in 2024.
While these types of investments are more accessible to interested investors – you can purchase them through conventional brokerage accounts – they do not invest in cryptocurrencies, safer. They are still subject to the same wild changes that exist when investing directly in crypto.
To reduce the risk of loss, Mihaka advises you to never invest more than 10% of your crypto portfolio. But depending on how much you invest, you may want to reduce the percentage of risk even more.
“I would always say that you do nothing more than you can fully afford to lose tomorrow if you are approaching crypto,” Catalini said.
Is the market aimed at cryptocurrencies in 2025?
Analysts, experts and YouTubers want to predict the future. Cryptocurrencies can make money by telling people that they have an internal path about what a coin or token will grow in value next.
“You have read a lot of predictions about what crypto and bitcoin will do in the future in terms of prices,” Frakasi said. “The reality is that, in the same way as no one can predict a refund, no one can predict the price of crypto.”
It is important to be cautious to anyone who claims to predict what will happen to the market or with a specific cryptocurrency. “It turns out,” Frakasi said, “that no one really has a crystal ball.”