Fidelity Digital Assets’ 2025 crypto outlook highlights Bitcoin adoption, Ethereum upgrades, and the rise of stablecoins. The report discusses Bitcoin’s role in economic stability, its potential during stagflation, and the growing global interest in digital assets.
Fidelity Digital Assets has released a report with an optimistic outlook for the crypto industry in 2025, highlighting key trends like Bitcoin adoption, Ethereum upgrades, and growing global interest in digital assets. The report emphasizes that countries ignoring Bitcoin could face challenges in staying competitive and maintaining economic stability.
Matt Hogan predicts that more nations, central banks, and financial institutions will adopt Bitcoin in 2025, following examples set by Bhutan and El Salvador.
El Salvador made history in 2021 by adopting Bitcoin as legal tender, showcasing its potential as a national asset. Hogan believes that ignoring Bitcoin, especially in the face of inflation and currency devaluation, could be riskier than adopting it.
Some countries are already engaging with Bitcoin in unique ways. Russia uses it for international transactions but hesitates to hold it as a reserve asset, citing concerns like market volatility.
Fidelity Digital Assets Highlights Bitcoin’s Shift to Practical Use
Similarly, Japan worries about Bitcoin’s liquidity. Hogan also mentioned U.S. political figures like President-elect Donald Trump and Senator Cynthia Lummis, who have supported a Bitcoin reserve strategy. Lummis even introduced the Bitcoin Act of 2024, which, if passed, could influence other nations to follow suit.
Fidelity’s report also discusses how Bitcoin and other digital assets are moving from speculative investments to practical adoption, transforming industries like finance and communication. Economist Carlota Perez likens this shift to the adoption of transformative technologies like railroads and oil in the past.
The report explores Bitcoin’s potential as a hedge during stagflation—an economic period marked by high inflation and stagnation—drawing parallels to how gold performed in similar scenarios during the 1970s and 1980s. Bitcoin’s scarcity and decentralized nature could make it a valuable asset in such conditions.
Fidelity also highlights the growing role of stablecoins, which are pegged to the U.S. dollar and facilitate fast, low-cost global payments. In 2024 alone, stablecoins processed $12 trillion in transactions, proving their importance in remittances and cross-border payments.
With new EU regulations providing legal protections, stablecoins are expected to integrate further into traditional financial systems, strengthening the dollar’s dominance in global trade by 2025.
