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10 key financial market predictions in 2025
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According to the Greenwich Coalition, much of the trends shaping financial markets in 2025 will be related to the growth and maturation of the crypto market.
According to the latest report from Coalition Greenwich, a leading financial analytics firm, crypto is slowly creeping into traditional finance. The report points to observations on key trading trends in 2025, which are directly related to the development of the cryptocurrency market. This suggests that crypto is increasingly having greater influence in the traditional financial sector.
The 10 predictions for 2025 are indicated:
- The influence of the ETF market will be expanded more and more.
- Financial applications that integrate as many technologies that support users at high speed will generate huge profits.
- Execution of orders between buyers and sellers will become more efficient (and more complicated).
- The pressure from startups on large financial institutions continues to increase.
- Crypto regulation in the United States will be increasingly unpredictable.
- Derivatives markets will continue to be buoyant.
- Demand for market data will continue to rise.
- Mandatory repo settlement activity* promotes innovation and competition.
- The link between TradFi and DeFi will be stronger and stronger.
- There will be a wave of investment in technology projects that support internal operations (operations) and ensure compliance with legal regulations.
Repo (Repurchase Agreement) is a form of short-term borrowing in the financial markets where a borrower sells a financial asset (usually a government bond) to a lender and at the same time pledges to buy it back on a specific date at a higher price. The difference between the sale price and the purchase price is the interest paid by the borrower.
The first trend focuses on the explosion of ETFs. According to analysts, ETFs are becoming a powerful distribution tool for almost all types of assets, including Bitcoin and Ethereum.
Currently, Bitcoin ETFs hold 6% of BTC supply, and it is expected that their influence will continue to increase in 2025. This shows the huge potential of crypto in capturing market share from traditional financial products.
In addition, startups with high flexibility continue to exert great pressure on traditional financial institutions. According to the fourth trend in the report, companies such as digital bank Revolut expanded their crypto operations to 30 more markets in Europe by November 2024. Meanwhile, trading platforms such as Robinhood are also expected to benefit greatly from the presidency of Donald Trump, whose policies are judged to be crypto-friendly.
The link between traditional finance (TradFi) and decentralized finance (DeFi) is also forecast to grow stronger. The report indicates that TradFi companies have begun adopting DeFi mechanisms to introduce traditional assets to investors. Some hedge funds have taken advantage of asset spreads between ecosystems such as Solana and Ethereum to make a profit.
However, many experts still express doubts that regulatory compliant financial institutions will aggressively pour capital into DeFi due to its lack of high volatility control.
In addition, the demand for Bitcoin options is also booming. By the end of 2024, Bitcoin options trading volume reached a record $14 billion, with the majority of traders betting on a bullish trend. This shows the maturity of the crypto market, especially as derivatives such as options are increasingly attracting interest.
However, the report also warns that 2025 will not be easy. According to the Greenwich Coalition, this could be the most unpredictable year since the start of the pandemic, with many possible fluctuations. Even so, the evolution of crypto in traditional finance remains a trend that is hard to reverse, promising an exciting year for both investors and the market.
Market data has become an important resource for traders and financial institutions. The report indicates that the demand for accurate, real-time data will continue to rise, prompting data service companies to continually improve to meet market expectations.
The report highlights that regulations in the US are becoming unpredictable, which creates insecurity for investors and financial institutions. With Donald Trump's presidency, there are likely to be more crypto-friendly policies, but the specificity and speed of enforcement remains a big question.