This week in crypto marks the beginning of a new chapter, with significant developments setting the pace for what could be an impactful year for the industry. On January 20, President-elect Donald Trump will officially take office, and his administration’s promises to foster a pro-crypto regulatory environment are already sparking anticipation. The Department of Government Efficiency, a non-traditional advisory body led by figures like Elon Musk and Vivek Ramaswamy, is expected to play a key role in shaping Trump’s crypto-related policies. Industry executives remain hopeful that 2025 will bring long-awaited regulatory clarity, enabling greater innovation and adoption of digital assets. 

Rumours of innovation weren’t limited to politics. Social media platform X, led by CEO Linda Yaccarino, is fuelling speculation that its payments feature, X Money, may launch imminently after new code was detected in the app. This development, combined with Elon Musk’s playful January 1 profile name change to Kekius Maximus, reignited conversations around his unpredictable influence on crypto markets. An Ethereum-based memecoin, KEKIUS, experienced a brief market cap explosion before crashing after Musk reverted his profile name and picture. While the moment highlighted the speculative frenzy in crypto markets, it also underscored the community’s fascination with Musk’s online antics. 

On the institutional front, speculation around government Bitcoin reserves continued to dominate headlines. While Galaxy Research predicts that the U.S. government may explore an expanded Bitcoin reserve policy in 2025, no direct purchases are expected this year. Similarly, Japan’s Prime Minister Fumio Kishida stated that the government is not ready to discuss implementing a Bitcoin national reserve. Meanwhile, a Hong Kong legislator has proposed including Bitcoin in the region’s national reserve as part of its “one country, two systems” framework, highlighting the growing global conversation around Bitcoin’s role in national financial strategies. 

As discussions around Bitcoin reserves unfold, the crypto ETF landscape continues to generate buzz. Betting markets like Polymarket and Kalshi project a bullish 2025 for crypto, with a 77% likelihood of a U.S. Solana ETF listing by year’s end. If realised, this would mark another major step for the industry following last year’s approvals of spot Bitcoin and Ethereum ETFs. Such developments could pave the way for broader adoption, solidifying the role of digital assets in mainstream finance. 

As the year unfolds, prediction markets remain a barometer for market sentiment. Both Kalshi and Polymarket indicate strong optimism for crypto in 2025, reflecting expectations of regulatory progress, institutional involvement, and continued innovation in blockchain technology. These predictions align with the industry’s broader momentum and the anticipation of a transformative year ahead. 

This week’s developments highlight the convergence of politics, innovation, and market dynamics as the crypto industry steps into 2025. With promising signals from prediction markets, the potential for regulatory breakthroughs, and continued technological advancements, the year is poised to be one of significant growth and evolution for digital assets. 

Other news circulating the block: 

• Morgan Stanley reportedly considers adding crypto to E-Trade 

• Do Kwon pleads not guilty in U.S. court following extradition on fraud charges 

• Vitalik Buterin adopts Moo Deng, a pygmy hippo and internet sensation 

• El Salvador’s Bitcoin holdings surpass 6,000 BTC, joining other nations with major reserves 

• Hive Digital relocates headquarters to Texas, citing Trump’s supportive Bitcoin policies 

• Australia’s Bitcoin ATMs reach 1,359 after 29 consecutive months of growth 

• Binance gains broker-dealer license in Brazil, marking its 21st global crypto approval 

• Swiss National Bank Bitcoin reserve proposal advances toward public referendum