Citi: Six key factors including stablecoin issuance and regulation will help determine the trend of cryptocurrencies in 2025

Odaily report: In a report last Friday, Citigroup analyst Alex Saunders identified six key factors that will help determine the price of cryptocurrencies by 2025, including ETF activity, regulation and the future of stablecoins. The supportive macroeconomic background, analysts say, is expected to continue supporting high-risk trading in the first quarter of next year, but they warn that the outlook thereafter is uncertain. The outlook may change, depending on Trump's economic policies and stock market volatility. Analysts expect the strong inflow of funds into cryptocurrency spot ETFs in the first year of listing to continue until 2025, providing further momentum for their price growth. The allocation of cryptocurrencies in investment portfolios will also be key to their future returns. Analysts say that during this year's rebound, Bitcoin has added value to multi-asset portfolios. However, it remains a highly volatile and risky asset, and when the allocation exceeds 3%, the risk to the overall investment portfolio can reach 10% or more. Analysts say that after Trump's election, the continued issuance of stablecoins has been boosted, which will help create a healthier cryptocurrency market. Analysts say that the most important theme to track for cryptocurrencies is adoption rate. Finally, analysts say that with Trump taking office, regulation will be a major theme next year. The incoming US president has appointed several pro-cryptocurrency candidates to his cabinet. Their policies are still unclear, but the industry generally expects regulation to be more relaxed, which could drive broader adoption.