Coinbase Institutional has identified three pivotal trends expected to shape the cryptocurrency market in the second half of 2025: improved macroeconomic conditions, rising corporate cryptocurrency adoption, and enhanced regulatory clarity. These factors are projected to collectively drive significant market growth.
Improved macroeconomic fundamentals form the first trend, with potential Federal Reserve rate cuts and controlled inflation creating favorable conditions for crypto market expansion. This economic environment is further supported by global liquidity indicators including the US M2 money supply and central bank balance sheets, suggesting sustained asset price appreciation.
The second trend highlights accelerating corporate demand, with 228 publicly traded companies now holding approximately 820,000 Bitcoin. This surge is attributed to new accounting standards enabling fair-value reporting of crypto holdings and the development of innovative investment strategies.
Regulatory advancements constitute the third major trend, with legislative initiatives like the STABLE Act and GENIUS Act working to establish clear frameworks for stablecoins and market structure. These developments are expected to strengthen investor confidence and institutional participation.
The report also notes the emergence of publicly-traded crypto vehicles (PTCVs) as a new investment avenue, while cautioning about associated risks including debt maturities and potential forced asset sales during market stress.