Is the year 2025 the year of encryption?

The cryptocurrency market has ever returned to the national headlines late last year, as the price of bitcoin-the most famous cryptocurrency-was the most famous- It rose to $ 100,000 For the first time.

While the price of bitcoin got a lot of journalism in recent months, the encryption market has collapsed a few years ago, which led some to look at it bubbleSimilar to the Dotcom Tutury at the beginning of the century.

Today, 17 % of adults in the United States have an encrypted currency, according to L. A recent study of the Pew Research Center. This study also found that 63 % of Americans say they have low confidence or no confidence in the current methods of investing cryptocurrency.

It is worth noting that young generations may look at the market differently. More than half of the American Gen Zers have investments, with the encrypted currency as their highest choice, according to 2023 Research from Finra. Gen Z has the highest tolerance of the risks, and the study found that most of the Gen Z investors had higher risk than the average.

With a new administration in the White House and encrypted currencies such as Bitcoin still swinging at the highest levels ever, we turned to experts to get a verification temperature from the next encryption. This is what we learned.

Will the government position on encryption change this year?

Historically, the federal government, especially the Supreme Education Council, was cautious about the encrypted currency industry. During the reign of Gary Ginsler, the former president of the Securities and Stock Exchange Committee, SEC filed high -level claims against encryption companies such as Coinbase and Corner.

The past few years have also seen countless Current currency fraudCollapse Luna symbolBesides FTX fall (Previous encryption exchange) and the other Ruling Its founder, Sam Bankan Al -Muqali. With a new power administration, there is likely to be a shift in the position of the federal government. Reuters reports SEC driving is set to repair cryptocurrency policies.

Change can spread to other agencies, such as the CFTC Futures Trading Committee (CFTC), which regulates the markets of financial derivatives (i.e. contracts and future options). Caroline Fam, who called for the coding rules, was clearer, It was called the CFTC chair recentlyDavid Sacks has already been used as “AI and Crypto CZAR”.

“These (the next Federal officials) are much more than encryption than the current regulatory agencies,” Cesar Frakasi, director of the Blockchain Initiative at McCOSBS College, told CNET. “Therefore, for sure, we must expect a different encryption approach.”

Can the encryption market see new laws on books?

The federal framework of the coded currency laws was mysterious, with many rules Vary From one country to another. This was a criticism that the cryptocurrency companies Cited To lawsuits.

Christian Catalini, founder of the Economy Laboratory at the Massachusetts Institute of Technology and a research scientist at the Massachusetts Institute of Technology School, says the encryption industry needs new rules to protect people from bad actors.

“Many of the most dangerous companies and startups in this field require organization for a period of time,” Catalini said. “Because of the lack of clear rules, poor actors managed to integrate with good rules – which led to very bad situations such as FTX’s collapse.”

In 2022, FTX bankrupt. Almost at the same time, many customers found that they could not withdraw money from the exchange of encryption. Soon it became clear that billions of dollars were missing. Sam Bankman Farid, FTX founder, currently Spend a 25 -year prison sentence For fraud.

Lack of organization is one of the reasons why Crypto is an unexpected investment vehicle. Catalini hope for new legislation, the regulatory gray area will become more clear, so that the encryption can “convert the page from noise and speculation and become more useful.”

Should you invest in the encryption market in 2025?

While most Americans see an encrypted currency As a speculative origin With the possibility of their money growing, wild price fluctuations make investment in the encrypted currency are risky at best. The industry is also complex Fertile. You should be an additional diligent if you decide to invest in encryption.

“The encrypted currency tends to be more volatile than other investments and can be affected by an unpredictable foreign events that affect confidence in the ecosystem for encryption,” Alex Michelka, Vice President of Investment Research at WealthFront, told CNET.

Michaalka cited the recent rise in encryption prices after President Trump’s electoral victory now as a major example of this volatility. He said that the expectations that the new administration will adopt a more suitable approach to encryption that was sufficient to send high prices.

Investing directly in the encrypted currency can lead to great victories or losses, but experts say you are speculating when you invest in these digital currencies. There are no guarantees.

This advice remains correct even if you invest in a trading box for exchange depends on the price of bitcoin or other digital assets. Crypto’s investment funds became popular for investors last year. ISHARES Bitcoin Trust has shattered from Blackrock previous ETF records when it was It appeared for the first time in 2024.

Although these types of investments are more accessible to interested investors – you can buy them through traditional mediation accounts – they do not make investment in cryptocurrencies safer. They are still undergoing the same wild fluctuations when investing directly in encryption.

To reduce the risk of losses, Michaalka advises you to invest more than 10 % of your Crypto wallet. But based on the amount you invest, you may want to reduce your risk rate more.

“I would always say that you don’t invest anything more than you can lose tomorrow if you are approaching encryption,” Catalini said.

Is the market tending to shattering in 2025?

Analysts, critics and YouTube men love to predict the future. The effects of Crypto can earn money by telling people that they have an internal path on any currency or symbolism that will rise the following value.

“I have read a lot of predictions about what the encryption and bitcoin will do in the future in terms of prices. The truth is that, in the same way that no one can predict the returns of stocks, no one can predict encryption prices,” said Frakasi.

It is important to be careful of anyone who claims to be predicting what will happen with the market or with a specific encrypted currency. “It turns out, no one has a truly crystal ball,” said Frakasi.