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Citi Research predicts that crypto ETFs are going to drive a market rally in 2019.
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Stablecoin adoption outside of payments could also push up the market.
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By 2024, BTC ETFs and ETH ETFs will result in a 90% increase in the total crypto market value.
Citi Research, a research arm of the leading financial institution Citi, predicts that in 2025, stablecoins will be the main drivers of cryptocurrency adoption. The firm expects a better performance for the upcoming year after Bitcoin reached the milestone of $108K in early October.
Citi Research’s analysis noted that 2024 was a very exciting year for cryptocurrency, as the total market capital of digital assets soared by 90% to a high of $3.73 trillion. The firm also noted that the exponential increase was due to the inflows of spot Bitcoin and Ethereum exchange-traded funds (ETFs), which were approved by the United States Securities and Exchange Commission earlier this year.
As can be seen in the chart, the weekly chart of the total crypto market capital indicates that the market will remain bullish in the long term, with the Relative Strength Index reading a value 64.25. The RSI also shows that the market has been overbought and is now correcting.
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The MACD indicator confirms the bullish outlook by confirming that buyers are still in charge in the longer-term time frame. The signal line (red), which remains below the MACD (blue), and the MACD Histogram (green) indicate a positive trend.
Stablecoin Adoption
Citi Research’s report stated that crypto ETFs were the “most important driver of crypto returns”, and this is expected to continue into the next year. The report also suggests that stablecoin adoption beyond crypto trading can enhance decentralized finance and increase engagement in the sector.
According to CoinMarketCap, the current market cap for stablecoins is a massive $213 Billion, and the total capital trading volume in the industry is a whopping 115.7 Billion.
Citi analysts also predicted that cryptocurrency regulation would change. The report also stated that market participants should expect a shift from the current enforcement-based regulation to a more legislation-based approach, under Donald Trump’s new administration.
