The crypto market is experiencing a surge of momentum as 2025 begins, particularly in light of the current macroeconomic and political climate, according to Grayscale's Zach Pandl. Pandl, the firm's managing director of research, highlighted to CNBC's Tanaya Macheel in a special Pro Talks discussion that 2024 was a successful year not only for crypto but also for many other assets.
This positive trend was largely attributed to the economy avoiding a recession and the Federal Reserve's decision to cut interest rates. Pandl believes this macroeconomic environment will be favorable for Bitcoin. Bitcoin had a record-breaking year in 2024, surging over 100% and reaching an all-time high of over $100,000. The launch of spot bitcoin ETFs further propelled the leading cryptocurrency, along with Donald Trump's reelection. Trump adopted a more crypto-friendly stance during his campaign, garnering support from the industry and raising expectations for more lenient regulations surrounding crypto investing. Pandl emphasizes that Bitcoin, now incorporated into various portfolios thanks to ETFs, has become a mainstream asset. He predicts increased discussions about Bitcoin at the highest levels of government, suggesting its enduring presence in the financial landscape