Crypto market 2025 outlook

The year 2025 has started with a bumpy ride for Bitcoin, which had a phenomenal 2024, soaring around 125% and hitting record highs. Despite some profit-taking at the beginning of the year, the digital coin is up almost 3% in today's session, hovering just below the US$100,000 mark. To shed light on what lies ahead for the world of crypto in 2025, CNBC Africa hosted Nigel Green, CEO of deVere Group, and Harry Scherzer, CEO of Future Forex for a discussion. Green believes that the positive momentum that propelled Bitcoin in 2024, particularly on the news of Trump's election, is likely to continue as the new administration takes office. He anticipates another bull run to commence shortly and extend for several months. On the other hand, Scherzer is more cautious, highlighting the potential for market corrections due to inflated expectations preceding actual events, such as Trump's policies. However, both agree that institutional backing, including the use of ETFs by major fund managers, and Trump's pro-crypto stance could fuel further growth in the crypto market. They also discuss how crypto behaves as a risky asset, influenced by macroeconomic factors like interest rates and inflation. The interview also delves into the impact of U.S. Federal Reserve policies on crypto volatility, with differing opinions on potential interest rate cuts or hikes in 2025. While Green remains bullish, emphasizing the positive developments in the crypto space, Scherzer cautions against overestimating the impact of Trump's administration on crypto prices. Both experts provide price targets, with Scherzer presenting a wide range of $50,000 to $150,000, factoring in market sentiment and potential corrections. Green echoes the upper end of the range, expressing confidence in Bitcoin reaching $150,000 by the end of the year. However, he advocates for prudent investment strategies, recommending a diversified portfolio with crypto assets comprising only 5% to 10%. The discussion concludes with a reminder to investors not to put all their eggs in one basket and seek professional advice for sound investment decisions.