The Development of the Cryptocurrency Market in 2025
The advancement of information technologies and globalization in the global economy have led to the emergence of a new form of money—cryptocurrency—which has gained widespread popularity in the modern economy. The very first cryptocurrency, now known by almost everyone regardless of their level of expertise in the field, is Bitcoin (BTC), created back in 2009. However, the cryptocurrency market today is no longer limited to just this coin; there are now tens of thousands of various crypto-assets, each with its own unique features and value.
Moreover, numerous centralized and decentralized exchanges have emerged, allowing users to buy and trade these assets. In almost every country, there are exchange points where crypto-assets can be easily and quickly converted into the local currency. However, due to technological disparities between countries, only a few states currently boast legislation that even partially regulates this rapidly evolving crypto industry.
The core issue lies in the fact that cryptocurrency emerged from the blockchain technology—a decentralized and distributed ledger (database) where information is stored in a chain of blocks linked together through cryptography. This structure makes the data immutable, transparent, and accessible for review by any network participant, without the ability to alter or delete it without consensus from all members. Blockchain is widely used for secure transaction records, tracking, and other areas where a high level of trust and fraud protection is essential. It offers many advantages over traditional global currencies.
As the market evolves, we are witnessing several trends related to cryptocurrencies. One of the major challenges facing the crypto market is the lack of regulatory frameworks governing the formation and evaluation of digital assets. This regulatory vacuum enables certain users to manipulate cryptocurrency prices by targeting individuals with limited knowledge about these assets. Such manipulation often leads to deceptive strategies that mislead inexperienced investors, resulting in financial losses. The absence of oversight or standardized rules creates an environment where crypto prices can be artificially inflated, posing a risk to individuals unfamiliar with the complexities of the market and ultimately undermining their investments.
Each year, new opportunities emerge, and a clear direction can be observed in this field.
An increasing number of experts point to the potential continuation of price growth for crypto-assets. Analysts at the research division of the largest U.S. crypto exchange Coinbase have identified early signs of capital flowing from Bitcoin into other cryptocurrencies. The same view was expressed by Matt Hougan, Chief Investment Officer of Bitwise. Experts from Pantera Capital, one of the oldest Bitcoin funds, stated that the market is entering the “second phase of the bull cycle,” where alternative cryptocurrencies outperform Bitcoin in returns.
"Overall, the market has entered an active bullish phase. Some may opt for stability through Bitcoin and Ethereum, while others will bet on aggressive altcoins. But the overall trend is clear—interest in digital assets continues to grow."
Since the beginning of August 2025, the price of Bitcoin has dropped by about 2.5%, falling to $113,000. This decline offset the growth seen earlier in the month, when Bitcoin reached a new all-time high of $124,500 on August 14. Meanwhile, Ethereum’s price remains 15% higher than it was on August 1—around $4,270, though still about 10% below its monthly peak of approximately $4,800.
It is also important to consider how cryptocurrencies are affecting the economic structures of countries, a topic that has gained relevance due to increased globalization. In 2025, cryptocurrencies have firmly moved beyond being just digital assets and have become an important element of the global economy. Their influence is evident in both developed and developing countries, as well as in the operations of major financial institutions.
In recent months, governments, corporations, and private investors have reevaluated the role of cryptocurrencies in the economy. In the United States, cryptocurrencies have been officially recognized as part of the financial system. In 2025, the government established a state crypto reserve, which includes Bitcoin, Ethereum, and other digital assets. This move was not merely symbolic but a strategic decision—in the face of global instability, cryptocurrencies have started to be seen as an alternative to gold. Furthermore, a law called the “GENIUS Act” was passed to regulate stablecoins, aiming to prevent them from posing risks to the economy and consumers.
Similar developments are taking place in Europe, where a comprehensive regulatory framework called MiCA (Markets in Crypto-Assets) continues to be implemented. Its purpose is to protect investors and consumers from the risks associated with cryptocurrencies and to prevent money laundering. This indicates that Europe does not intend to ban these technologies but rather aims to control their expansion.
On the other hand, in developing countries, cryptocurrencies are often seen as a tool for economic survival. For instance, in Argentina, where inflation remains extremely high, many citizens convert their savings into stablecoins or Bitcoin to preserve purchasing power. However, this does not always go smoothly. In 2025, the President of Argentina supported the launch of a meme coin called $LIBRA, which initially surged in price and then crashed.
Furthermore, cryptocurrencies remain attractive to investors in 2025. Large funds such as BlackRock and Fidelity have included them in their portfolios, and the launch of ETFs (Exchange-Traded Funds) based on cryptocurrencies has made Bitcoin and Ethereum more accessible to mainstream investors. This has helped increase liquidity and stabilize the market. For example, the price of Bitcoin in mid-2025 exceeded $124,000 for the first time in history, while Ethereum rose above $4,800.
Thus, by 2025, cryptocurrency is no longer a fringe phenomenon. It influences exchange rates, monetary policy, investment strategies, and even the domestic politics of countries. The question is no longer whether cryptocurrencies are permissible, but what role they will play in the new economic order, and how they will influence the policies of nation-states.
Moreover, numerous centralized and decentralized exchanges have emerged, allowing users to buy and trade these assets. In almost every country, there are exchange points where crypto-assets can be easily and quickly converted into the local currency. However, due to technological disparities between countries, only a few states currently boast legislation that even partially regulates this rapidly evolving crypto industry.
The core issue lies in the fact that cryptocurrency emerged from the blockchain technology—a decentralized and distributed ledger (database) where information is stored in a chain of blocks linked together through cryptography. This structure makes the data immutable, transparent, and accessible for review by any network participant, without the ability to alter or delete it without consensus from all members. Blockchain is widely used for secure transaction records, tracking, and other areas where a high level of trust and fraud protection is essential. It offers many advantages over traditional global currencies.
As the market evolves, we are witnessing several trends related to cryptocurrencies. One of the major challenges facing the crypto market is the lack of regulatory frameworks governing the formation and evaluation of digital assets. This regulatory vacuum enables certain users to manipulate cryptocurrency prices by targeting individuals with limited knowledge about these assets. Such manipulation often leads to deceptive strategies that mislead inexperienced investors, resulting in financial losses. The absence of oversight or standardized rules creates an environment where crypto prices can be artificially inflated, posing a risk to individuals unfamiliar with the complexities of the market and ultimately undermining their investments.
Each year, new opportunities emerge, and a clear direction can be observed in this field.
An increasing number of experts point to the potential continuation of price growth for crypto-assets. Analysts at the research division of the largest U.S. crypto exchange Coinbase have identified early signs of capital flowing from Bitcoin into other cryptocurrencies. The same view was expressed by Matt Hougan, Chief Investment Officer of Bitwise. Experts from Pantera Capital, one of the oldest Bitcoin funds, stated that the market is entering the “second phase of the bull cycle,” where alternative cryptocurrencies outperform Bitcoin in returns.
"Overall, the market has entered an active bullish phase. Some may opt for stability through Bitcoin and Ethereum, while others will bet on aggressive altcoins. But the overall trend is clear—interest in digital assets continues to grow."
Since the beginning of August 2025, the price of Bitcoin has dropped by about 2.5%, falling to $113,000. This decline offset the growth seen earlier in the month, when Bitcoin reached a new all-time high of $124,500 on August 14. Meanwhile, Ethereum’s price remains 15% higher than it was on August 1—around $4,270, though still about 10% below its monthly peak of approximately $4,800.
It is also important to consider how cryptocurrencies are affecting the economic structures of countries, a topic that has gained relevance due to increased globalization. In 2025, cryptocurrencies have firmly moved beyond being just digital assets and have become an important element of the global economy. Their influence is evident in both developed and developing countries, as well as in the operations of major financial institutions.
In recent months, governments, corporations, and private investors have reevaluated the role of cryptocurrencies in the economy. In the United States, cryptocurrencies have been officially recognized as part of the financial system. In 2025, the government established a state crypto reserve, which includes Bitcoin, Ethereum, and other digital assets. This move was not merely symbolic but a strategic decision—in the face of global instability, cryptocurrencies have started to be seen as an alternative to gold. Furthermore, a law called the “GENIUS Act” was passed to regulate stablecoins, aiming to prevent them from posing risks to the economy and consumers.
Similar developments are taking place in Europe, where a comprehensive regulatory framework called MiCA (Markets in Crypto-Assets) continues to be implemented. Its purpose is to protect investors and consumers from the risks associated with cryptocurrencies and to prevent money laundering. This indicates that Europe does not intend to ban these technologies but rather aims to control their expansion.
On the other hand, in developing countries, cryptocurrencies are often seen as a tool for economic survival. For instance, in Argentina, where inflation remains extremely high, many citizens convert their savings into stablecoins or Bitcoin to preserve purchasing power. However, this does not always go smoothly. In 2025, the President of Argentina supported the launch of a meme coin called $LIBRA, which initially surged in price and then crashed.
Furthermore, cryptocurrencies remain attractive to investors in 2025. Large funds such as BlackRock and Fidelity have included them in their portfolios, and the launch of ETFs (Exchange-Traded Funds) based on cryptocurrencies has made Bitcoin and Ethereum more accessible to mainstream investors. This has helped increase liquidity and stabilize the market. For example, the price of Bitcoin in mid-2025 exceeded $124,000 for the first time in history, while Ethereum rose above $4,800.
Thus, by 2025, cryptocurrency is no longer a fringe phenomenon. It influences exchange rates, monetary policy, investment strategies, and even the domestic politics of countries. The question is no longer whether cryptocurrencies are permissible, but what role they will play in the new economic order, and how they will influence the policies of nation-states.
