Citi analyst: Six key factors including ETF activities and regulations will help determine the trend of Cryptocurrency in 2025

Golden Finance reported that Citigroup analyst Alex Saunders pointed out six key factors that will help determine the price of cryptocurrencies in 2025, including ETF activities, regulation, and the future of stablecoins, in a report last Friday; Supportive macro background Analysts said they expect the current macro backdrop to continue supporting high-risk trading in the first quarter of next year, but warned that the outlook beyond that is uncertain. They said the outlook could change depending on Trump's economic policies and stock market volatility. Continued capital inflows into spot ETFs Analysts expect that the strong capital inflow of the Cryptocurrency spot ETF in its first year of listing will continue until 2025, providing further momentum for its price growth. Crypto Assets are part of the portfolio allocation Portfolio allocation will also be key to the future returns of Crypto Assets. Analysts say that during this year's rebound, Bitcoin has added value to multi-asset investment portfolios. However, it remains a highly volatile and risky asset, with the risk to the overall portfolio reaching 10% when the allocation exceeds 3%, or stablecoin issuance. Analysts say that the continued issuance of stablecoins has been boosted by Trump's election, which will help create a healthier cryptocurrency market. Higher adoption rate Analysts say the most important theme to track for Crypto Assets is adoption rates. Relaxing regulation Finally, analysts say that with the inauguration of Trump, regulation will be the main theme next year. The incoming US president has appointed several candidates who support Crypto Assets to his cabinet. Their policies are still unclear, but the industry generally expects regulation to be more lenient, which could drive wider adoption.