6?? Key factors that will shape the market

It's 2025, Traders!

In our first newsletter of the year, we're focusing on the key factors that could influence crypto. Let’s take a look at the trends and events shaping the market, so you can stay ahead of the curve.

1?? U.S. Policy

The expectations around Trump's presidency and its impact on the crypto market are significant. Government shifts are something we’ll be closely monitoring. The first key date is his inauguration on January 20, 2025.

An important transformation for 2025 is the new SEC chair, Paul Atkins, who will replace Gary Gensler on January 20, 2025. This shift could lead to a change in the regulatory landscape for crypto.

2?? National Bitcoin Reserves

Next up, the idea of creating national Bitcoin reserves is gaining traction. Analysts from Vaneck and Bitcoin Suisse predict this could become a turning point for global crypto adoption. The idea of such a reserve isn't limited to the U.S. Leaders from other countries have also expressed interest. According to Forbes, G7 and BRICS nations might create strategic Bitcoin reserves this year, making this a significant topic to watch.

3?? Regulation

2025 promises to bring more clarity to the regulatory environment for cryptocurrencies. In the U.S., the FIT21 bill, which passed the House in 2024, is probably set to be considered by the Senate. It aims to enhance the CFTC’s authority and make crypto trading more accessible on exchanges.

Meanwhile, in Europe, the full implementation of the MiCA regulations and the Digital Operational Resilience Act (DORA) will take effect in January 2025, strengthening transparency and investor protection.

On the global stage, China is set to issue government bonds worth over $400 billion this year, aiming to stimulate the economy. This move could positively impact all markets, including crypto.

4?? Interest Rates in the U.S.

The Federal Reserve’s interest rate decisions will continue to be an important factor this year. Jerome Powell, the Fed Chair, has indicated a potential slowdown in interest rate cuts, with a 50 basis point reduction expected in 2025. Consistent with previous years, the FOMC has scheduled eight meetings to decide on interest rates: January 29, March 19, May 7, June 18, July 30, September 17, October 29, and December 10. Monitoring this will be key, as it will influence market sentiment, including crypto.

?5?? ETF Inflows and New Crypto ETFs

Institutional investment continues to be a key trend, particularly with spot Bitcoin and Ethereum ETFs. We’re also keeping an eye on developments regarding Solana ETFs, as the SEC has been reviewing spot SOL ETF applications and engaging with potential issuers. Additionally, the potential launch of spot ETFs for Ripple and Cardano could further enhance the recognition of digital assets within the financial sector.

6?? Institutional Adoption and Bitcoin Acquisition

Finally, the growing interest in Bitcoin from major public companies like MicroStrategy, Metaplanet, and MARA Mining is something to keep an eye on. Their acquisitions could impact Bitcoin's value and market perception.

So, here we are in 2025, and there’s a lot to keep an eye on — whether it’s new regulations, more institutional investments, or the rise of crypto ETFs. It’s shaping up to be an exciting year, so make sure you gear up your bots for market moves!

Kind regards,

TradeSanta team