The outlook for bitcoin (BTC), the world’s largest cryptocurrency, is positive and its price is expected to remain high in 2025, German bank Deutsche Bank (DB) said in a report on Wednesday.
A more favorable regulatory and policy environment in the United States, growing institutional adoption, and looser monetary policy from the Federal Reserve are all expected to support the cryptocurrency’s price, according to the report.
The Trump administration’s support for crypto means the current market uptrend is likely to continue, and continued presidential support is essential for “the continuation of crypto’s golden age,” the analyst wrote Marion Laboré.
Although President Trump did not sign any crypto-related executive orders on his first day in office, the announcement that the Securities and Exchange Commission (SEC) will develop a regulatory framework for digital assets is a first step toward an overhaul of the sector. the report said.
The appointment of Paul Atkins as SEC chairman is also indicative of a “shift toward an innovation-friendly approach,” Deutsche Bank noted.
With the Markets in Crypto-Assets (MiCA) Regulation coming into force in the EU in December, the European crypto market now enjoys increased legitimacy and security, the report adds.
More clarity on the potential creation of a US bitcoin reserve could come in the first quarter, the bank said.
Read more: Bitcoin is no longer a niche investment as institutional adoption takes off: WisdomTree
