The analyst spoke about the factors influencing the growth of cryptocurrency
The growth dynamics of cryptocurrencies are influenced by many interrelated factors. First of all, it is the general macroeconomic environment and the monetary policy of major central banks, especially the US Federal Reserve. A promising currency, in addition to bitcoin, is Ethereum. This was told to Izvestia on January 16 by BitRiver financial analyst Vladislav Antonov.
"The key role is played by institutional investors and their willingness to enter crypto-assets. The events of April 2024, namely the halving of bitcoin, will definitely have a significant impact on the entire market in 2025," Antonov explained.
According to him, political support for the crypto industry is becoming the most important factor. US President-elect Donald Trump's position has undergone significant changes - from skepticism to active support. His intention to make the US the world's cryptocurrency capital can significantly affect the development of the entire industry, creating a more favorable regulatory environment to attract new institutional investors.
According to the specialist, it is important to realize that the cryptocurrency market is highly oversaturated. The existence of many coins and tokens creates a serious problem with the distribution of liquidity, which leads to high volatility. The main trend is set by bitcoin - when it grows, the whole market grows, when it falls - altcoins fall even more. At the same time, one should be extremely careful with forecasts of super-high prices. Even if long-term bitcoin has the potential to grow to seven digits, in 2025 such targets look overly optimistic.
"As for promising cryptocurrencies beyond bitcoin, I would pay attention to projects with real technological solutions and practical applications. Ethereum remains a key player in smart contracts and decentralized applications. Solana is showing impressive performance and a growing ecosystem. Cardano with their scientific approach to blockchain development is also noteworthy," summarized Antonov.
The information in the material is not an investment recommendation.
Prior to that, on January 9, BitRiver financial analyst Vladislav Antonov reported on the risks of bitcoin's fall this month. According to the specialist, the decline in the rate of cryptocurrency in early January 2025 is due to favorable employment figures in the United States, which increased forecasts of a more stringent monetary policy of the Federal Reserve.