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Crypto Surges to $3 Trillion, AI Disruption, US Policy Shifts: 2025 Investment Forecast

Crypto Surges to $3 Trillion, AI Disruption, US Policy Shifts: 2025 Investment Forecast

As we step into 2025, the investment world is entering a new phase, shaped by a mix of economic resilience, technological breakthroughs, and shifting geopolitical dynamics. The past year, 2024, was a strong one for investors, with markets performing in line with optimistic expectations.

Despite the challenges posed by tighter monetary policies, the global economy proved remarkably adaptable, and equities delivered solid returns. However, as we look ahead, the investment landscape is growing, requiring a more thoughtful and strategic approach to address the opportunities and risks of this new paradigm.

Adapting to Economic Resilience in a Changing Policy Landscape

The economy has remained resilient despite tighter monetary policy. After years of rate hikes, the Federal Reserve is set for one more cut in 2025. This reflects moderating inflation and steady growth.

US GDP grew 2.8% in Q3 2024, driven by consumer spending and investment. With inflation easing, central banks have more flexibility. Equity markets are expected to stay strong but volatile in 2025.

Key Themes for 2025

Trump 2.0: Managing Volatility

Donald Trump’s return to the presidency and a Republican-led Congress bring economic policy shifts and market uncertainties. Deregulation, tax cuts, and infrastructure spending may support US equities, particularly in energy, industrials, and financials.

However, potential geopolitical tensions and trade disputes could increase market volatility. A selective investment approach focused on policy-driven sectors, along with portfolio diversification, will be important in managing risks.

The Crypto Revolution

Cryptocurrencies have become a major force in finance, with adoption growing rapidly. Bitcoin is now a mainstream asset, attracting institutional investors. By late 2024, the crypto market surpassed $3 trillion, fueled by strong demand.

Governments are also advancing digital currencies. China’s digital yuan is expanding, and the European Central Bank plans a digital euro pilot in 2025. Despite volatility, blockchain technology is driving innovation, making crypto a key investment consideration.

AI-Powered Innovation

AI is transforming industries and creating new investment opportunities. In 2024, AI-driven companies saw strong returns, a trend expected to grow in 2025. The focus is shifting from hardware to software applications.

Healthcare, finance, and manufacturing are benefiting from AI innovations. AI-powered drug discovery is advancing pharmaceuticals, while analytics reshape financial services. A report by McKinsey estimates AI could add $13 trillion globally by 2030. Investors should target companies using AI for long-term growth.

The Cycle Continues: Geopolitics and Gold

Geopolitical developments will remain a key driver of market dynamics. While risks such as trade disputes and regional conflicts pose challenges, they also present opportunities for investors who can assess these complexities. For instance, any potential fiscal stimulus from China could provide a boost to global growth, benefiting commodities and emerging markets.

Gold, a traditional safe-haven asset, continues to play a crucial role in portfolio diversification. With central banks around the world maintaining substantial gold reserves, the metal remains a reliable hedge against geopolitical and economic uncertainties. Global gold demand reached a record high in 2024, driven by strong central bank purchases and robust investment demand.

Asset Allocation for 2025

Given the evolving investment landscape, a balanced and diversified approach to asset allocation is essential. Here are the key considerations for 2025:

Equities: Maintain an overweight position in equities, focusing on sectors with strong earnings and growth potential. Falling interest rates and a supportive macroeconomic backdrop are expected to sustain risk assets.

Fixed Income: Adopt a neutral stance on fixed income, with an eye on buy-on-dip opportunities. While yields have moderated, high-quality bonds can provide stability in a volatile environment.

Cash: Remain underweight in cash, as the opportunity cost of holding cash is high in a supportive macro environment.

Cryptocurrencies: Consider allocating a portion of your portfolio to cryptocurrencies and blockchain-related assets. While the market remains volatile, the long-term potential for growth and innovation in this space is significant.

Alternatives: Stay overweight in alternatives, such as private equity, real estate, and hedge funds, which offer diversification benefits and less correlation with traditional asset classes.

Opportunities and Risks

The 2025 investment landscape presents both opportunities and risks. Economic resilience, innovation, and geopolitics will drive market dynamics, with volatility expected. A strategic approach is key.

Focusing on US policy, crypto, AI, and global trends can help investors navigate this shift. However, this is personal insight, not financial advice. Each investor should assess risks and consult a professional.

 

Source: https://www.financemagnates.com/forex/crypto-surges-to-3-trillion-ai-disruption-us-policy-shifts-2025-investment-forecast/

 

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
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Cryptocurrency market back above $1 trillion in market capitalisation

Cryptocurrency market back above $1 trillion in market capitalisation

However, experts say it is premature to call this the start of a bull run because the bear markets are synonymous with momentary price upswings

The global cryptocurrency market crossed $1 trillion in market capitalisation in the past 24 hours, bringing relief to investors and raising hopes about the start of a bull run.

Strong buying interest in Bitcoin (BTC), the world’s largest digital currency, took it well above $22,700, while Ethereum (ETH), the second most valuable crypto, crossed $1,600, lifting the entire crypto market by about 5 percent in the past 24 hours.

After a crash in prices over the past several weeks, the market capitalisation of the crypto market stood at $1.01 trillion for the first time since June 13. BTC’s market capitalisation was $420 billion, while ETH had a market cap of $120 billion, with $20 billion added in the past 24 hours alone.
ETH is up by 54 percent over the past month, according to data from CoinGecko, an independent cryptocurrency data aggregator. The gains are on account of the much-awaited “merge” upgrade, which will take ETH from its current state as a proof-of-work (PoW) blockchain to an energy-efficient proof-of-stake (PoS) network in September, also dubbed as “Ethereum 2.0.” The asset had dipped below $1,000 less than a week ago.

No bull run, yet

According to experts, while there are signs of a revival in the crypto market, it would be premature to call it a bull run.

“There are no supporting headwinds to support the rally, with most factors that led to the crypto winter still in place. Investors can add small amounts of money at this point and wait for overall sentiment to turn positive before joining in the bull-run when it begins later on,” Arijit Mukherjee, founder of Yunometa, an NFT marketplace, told Benzinga.

“What we have seen this week is the break upwards. But this does not mean that the upward trend will continue,” said Jenny Zheng, NFT business development lead at Bybit. “We have to bear in mind that we are still in the bear market. The wild price fluctuations are part and parcel of the crypto. I will not go all in just because I see a small jump this week.”

The best-selling author added that bear markets are synonymous with momentary price upswings and that four of the last six months have been negative for crypto markets, signalling that the bear trend continues.

“Based on historical price patterns, the market is still in a bear channel, which started back in May. The two-week upswing is just temporary. This is no way near a bull run,” said Philip Verrien, project lead at Pollen DeFi.

 

Original Source: https://www.moneycontrol.com/news/business/cryptocurrency/cryptocurrency-market-back-above-1-trillion-in-market-capitalisation-8854361.html

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j

Cryptos Cross $1 Trillion In Market Cap: Is The Bull Run On?

Cryptos Cross $1 Trillion In Market Cap: Is The Bull Run On?

After a dramatic crash in prices over the last several weeks, the cryptocurrency market has crossed the $1 trillion mark in market capitalization, bringing relief to investors and raising optimism about the start of a bull run.

Strong Buying With Volumes Strong buying interest in the world’s largest digital currency Bitcoin (CRYPTO: BTC) catapulted its prices well above the $22,700 mark, while prices of the second most valuable crypto Ethereum (CRYPTO: ETH) crossed the $1,600 mark, lifting the entire crypto market by about 5% in the last 24 hours.

The market capitalization of the crypto market stands at $1.01 trillion, a level seen last on June 13.

While Bitcoin’s market capitalization stands at $420 billion, Ethereum is sitting at a total market cap of $120 billion, with $20 billion having been added in the last 24 hours alone.

Ethereum Up 54% In One Month According to data from CoinGecko, Ethereum is up by an impressive 54% over the last month, on the back of its much-anticipated merge from its current state as a proof-of-work (PoW) blockchain to an energy-efficient proof-of-stake (PoS) network in September this year, also dubbed as “Ethereum 2.0.”

The asset had dipped below $1,000 less than a week ago.

According to experts, while there are signs of a revival in the overall crypto market, it would be premature to call it a bull run.

Premature To Say Bull Run Has Started “For one, there are no supporting headwinds to support the rally with most factors that led to the crypto winter still in place. Investors can add small amounts of money at this point and wait for overall sentiment to turn positive before joining in the bull run when it begins later on,” Arijit Mukherjee, founder of Yunometa, an NFT marketplace, told Benzinga. “It is also important to research and pick the right tokens at this point rather than just join the herd in search of a quick buck.”

Downtrend Obvious Jenny Zheng, NFT business development lead at Bybit, said it was very obvious that a downward trend is currently underway and that historically, there have been 200 weeks of sideways trading before a price break upwards.

“What we have seen this week is the break upwards. But this does not mean that the upward trend will continue. We have to bear in mind that we are still in the bear market. The wild price fluctuations are part and parcel of the crypto, I will not go all in just because I see a small jump this week,” Zheng says.

Miners Rapidly Exiting BTC Positions Notably, a report from blockchain analytics firm CryptoQuant states that miners are rapidly exiting their Bitcoin positions, with 14,000 Bitcoin, worth more than $300 million, transferred out of wallets belonging to miners in a single 24-hour period at the end of last week.

In the last few weeks, miners have offloaded the largest amount of Bitcoin since January 2021.

Upswing Temporary “Based on the historical price patterns, the market is still in a bear channel, which started back in May. The two-week upswing is just temporary. This is no way near a bull run,” Philip Verrien, project lead at Pollen DeFi, said.

According to Anndy Lian, chief digital advisor to the Mongolian Productivity Organization, there is no way to stop a bear market, which is a part of a financial cycle.

“In the last week, we saw a bullish knife-catching trade setup, and everyone was excited saying that bulls are back. This is totally not realistic and a misconception of naive investors,” Lian said.

The co-author of “Blockchain Revolution 2030” added that bear markets are synonymous with momentary price upswings and that four of the last six months have been negative for crypto markets, signaling that the bear trend continues.

 

 

 

 

Original Source: https://uk.investing.com/news/cryptocurrency-news/cryptos-cross-1-trillion-in-market-cap-is-the-bull-run-on-2690227

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j