2025 Global Crypto Outlook: Regulations, Price Volatility and the Future

Recent developments in both the world of cryptocurrencies, as well as the overall global economy, have had a tremendous impact on the price of Bitcoin and other cryptos right now.

This comes following an extended bull run for crypto that took place between the last quarter of 2024, and the first two months of 2025. Yet while other factors may be weighing on the minds of crypto investors right now, consider the root cause of the late 2024/early 2025 crypto rally: the specter of regulatory clarity.

Assuming that latest macro uncertainties rocking the crypto market will ultimately come to pass, the arrival of regulatory clarity, and with it a further mainstream adoption of crypto as a store of value, medium of exchange, and as an institutional-grade asset class, strongly suggests the eventual return of a crypto bull market.

In a recent interview with TheNational, Binance CEO Richard Teng suggested the US could see new, supportive crypto legislation emerge by late summer. Teng explained his optimistic view under the Trump administration, “The new efforts and optimism is very real in the US. So, I believe the US is going to come out with very enlightened, pro-industry and smart regulations that support the industry but also manages the risk at the same time. So you’re probably going to see some of the new legislation coming through by August this year.”

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Regulatory Clarity: Taking Shape Across the Globe

After years of regulatory murkiness, regulatory clarity has started to take shape, and not just in the U.S. Yes, this was a major reason behind the aforementioned run-up in cryptocurrency prices. Following Donald Trump’s re-election as U.S. President last November, investors became extremely confident that the U.S. would soon implement clear-cut yet industry-friendly regulatory policies.

So far, this has by-and-large panned out. Since taking office, Trump, his administration, as well as the U.S. Congress, have all engaged in various efforts to improve regulatory clarity. Among other things, this should pave the way for accelerated institutional adoption of cryptocurrencies.

However, jurisdictions outside the U.S. are also fast-tracking the implementation of clear and comprehensive cryptocurrency regulations. Examples of this include the E.U.'s rollout of the Markets in Crypto-Assets (MICA) regulatory framework, as well as the U.K.’s increased licensing of crypto exchanges and similar institutions.

Regulatory progress is also taking shape in India. The Indian government is shifting its stance on crypto, influenced by the sweeping changes in crypto regulatory policy taking shape in the United States. So far, this has resulted in major exchanges returning to the Indian market, as well as increased discussion about the launch of a digital rupee by the Reserve Bank of India.

Crypto and Macro-Specific Developments Alike are Impacting Prices

Regulatory progress may be continuing unabated, but unfortunately this has not translated into a continued bull run for cryptocurrency prices. Starting in February, the price of Bitcoin and other major cryptos began to reverse course.

At first, this was perhaps due to investors, previously buying in on expectations of regulatory change, “selling on the news” of regulatory changes being proposed/implemented. More recent price declines, however, have likely been driven by recently announced changes to U.S. tariff policy.

These proposed changes have led to a spike in fear and uncertainty among investors. Stocks around the world have sold off, and the bearishness has spilled over into the cryptocurrency market. As a result, Bitcoin prices have fallen by double-digits, with other cryptos experiencing even greater price declines.

Nevertheless, even as the crypto market rout has yet to end, any sort of relief/resolution to the recent tariff uncertainty could help shift focus away from macro concerns, and back to strengthening fundamentals for Bitcoin and other cryptocurrencies.

Looking Ahead

Regulatory changes and macroeconomic challenges aren’t the only factors at play in the current crypto trading environment. Increased integration of artificial intelligence technology also stands to have an impact on both institutional and retail trading of cryptocurrencies.

A rebound in global usage of decentralized finance (or DeFi) platforms also stands to have a positive impact on trading volumes, and possibly, on cryptocurrency prices. Taking all of these factors into account, it’s clear that while risk and uncertainty may stay at elevated levels, the opportunity to profit has not gone away.

Better yet, if/when recent tariff and trade war-related concerns turn a corner/begin to subside, this particular headwind will likely no longer have an outsized impact on cryptocurrency price action. As hinted above, once this happens, developments such as global regulatory clarity, and with it increased institutional adoption and retail investor access, could end up having a positive impact on the price of cryptocurrencies.