- Trump’s presidency may boost M&A activity, driving crypto adoption through decentralized alternatives
- Corporate giants like Amazon and Google have strengthened blockchain integration, signaling increased crypto adoption
Following a challenging conclusion to the year 2024, Bitcoin [BTC] experienced a week of bullish energy driven by New Year enthusiasm. Interestingly, this digital currency held its ground within the $98,000-$99,000 range for two days in succession, and then surpassed $100k once more.
As Donald Trump prepares to take office, investors and crypto enthusiasts are preparing themselves for possible changes in the cryptocurrency sector.
What could drive crypto adoption?
A noteworthy development is the resurgence of Mergers and Acquisitions (M&A). Most recently, in a new post on his platform (previously known as Twitter), Bitwise Asset Management’s CEO, Hunter Horsley, has drawn attention to this revival.
During the Trump administration, it was emphasized that mergers and acquisitions (M&As) might accelerate cryptocurrency acceptance by explaining the benefits of decentralized systems compared to traditional centralized institutions which might not always put individual needs first.
In the past couple of years, it seems that Mergers and Acquisitions (M&A) have taken a step back. Last year in 2024, the total value of announced deals amounted to $1.4 trillion – This is an increase compared to 2023, but it’s still not reaching the levels seen before the pandemic, as indicated by Dealogic.
Yet, many anticipate that if Trump resumes his presidency, it may spark a resurgence of Merger and Acquisition (M&A) activities. Potential causes for this surge could include an improved economic environment, reduced interest rates, and adjustments in regulations.
Will 2025 be the year for crypto?
2025 could be a pivotal year, as it may witness an increase in both the number and magnitude of mergers and acquisitions (M&As).
Remarking on the same, Horsley added,
Major corporations, such as those with a market value of around 7 billion dollars or more, might soon have the financial power to acquire smaller companies like Amazon potentially purchasing Instacart, and Google possibly buying Uber.
In summary, the predicted increase in mergers and acquisitions might lead to a strengthening of market dominance by major corporations. Such a shift could potentially make it harder for medium-sized businesses to keep up with the expanding influence of these industry titans.
Horsley further suggested that such consolidation will likely fuel interest in cryptocurrencies.
One possible reason could be the growing tendency for both people and organizations to explore decentralized systems, as they might find these more appealing than traditional centralized institutions which often prioritize their self-interests above a balanced market environment.
He added,
Cryptocurrencies are based on the idea that we shouldn’t rely on big organizations to act in our best interests. As these entities continue to grow, this mistrust becomes even more pronounced.
The role of big tech giants
Furthermore, it’s worth noting that established companies such as Google and Amazon are increasingly involved in the blockchain industry, signaling a rapid increase in the use of decentralized technologies. For instance, Amazon offers its Managed Blockchain service, while Google provides Blockchain-as-a-Service on Google Cloud. These moves demonstrate how blockchain technology is becoming more integrated into business infrastructure.
With Trump’s victory in the elections serving as a catalyst, the cryptocurrency market has experienced a resurgence, propelling Bitcoin from approximately $69,000 in November to over $100,000 at present. This surge indicates the growing momentum and ushers in a new era for digital assets.
Therefore, as more institutions become involved with blockchain technology, it seems that the likelihood of widespread cryptocurrency use is stronger than it has ever been.
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2025-01-07 09:11