Digital assets enjoyed strong performance in 2024. Following Republican victories in the US House, Senate, and presidency, bitcoin broke above the $100,000 mark, and the market capitalisation of all cryptocurrencies now sits at $3.3 trillion as of 31 December, 2024.1
While US large-cap equities have risen 3.2% since the election, bitcoin has risen 43.9% and ether has risen 39.7%.2 In 2025, we expect this momentum to continue as a series of positive headlines and legislative progress look likely.
Cryptocurrencies are disproportionately influenced by broader macro conditions and sentiment, in our view. We believe both are shifting to be more supportive for digital assets, including positive post-US election developments, friendlier investor attitudes towards cryptos, and a market backdrop that looks likely to be positive given central bank rate cuts and a more normal global growth environment.
We highlight five stand-out factors below that suggest cryptocurrencies may continue to see positive performance in 2025.
