Citi: Six key factors including stablecoin issuance and regulation will help determine the trend of cryptocurrencies in 2025

In a report last Friday, Citi analyst Alex Saunders pointed out six key factors that will help determine cryptocurrency prices in 2025, including ETF activity, regulation and the future of stablecoins; Supportive macro backdrop Analysts said they expect the current macro backdrop to continue to support high-risk trading in the first quarter of next year, but warned that the outlook thereafter is less certain. The outlook could shift, depending on Trump's economic policies and stock market volatility. Continued inflows of spot ETFs Analysts expect the strong inflows of cryptocurrency spot ETFs in their first year of listing to continue into 2025, providing further impetus for their price growth. Cryptocurrency allocation in portfolios Portfolio allocation will also be key to future returns for cryptocurrencies. Analysts said that during this year's rally, Bitcoin has added value to multi-asset portfolios. Still, it remains a volatile and risky asset, with an allocation of more than 3% posing a risk of 10% or more to the total portfolio. Stablecoin issuance Analysts said the continued issuance of stablecoins has been boosted after Trump's election, which will help create a healthier cryptocurrency market. Higher adoption rate Analysts say that for cryptocurrencies, the most important theme to track is adoption rate. Deregulation Finally, analysts say that regulation will be a major theme next year as Trump takes office. The incoming US president has appointed several pro-cryptocurrency candidates to his cabinet. Their policies are unclear, but the industry generally expects that regulation will be looser, which may drive wider adoption. (Jinshi)