Cryptocurrency market recovery expected in late 2025 with clearer regulations and more institutional capital - IcoHolder.
The cryptocurrency market is poised for a major recovery in the second half of 2025, according to Andrew Lunardi, Head of Growth at Immutable. Despite Bitcoin and Ethereum currently trading below $82,000 and $2,000 respectively, Lunardi believes key developments, particularly regulatory clarity, will trigger a significant market rebound.
Speaking on the Milk Road podcast, Lunardi emphasized that the Trump Administration’s anticipated policies on compliant tokens could be a game-changer. He argued that clearer regulations will reduce uncertainty and encourage institutional investors to pour capital into the market. “We’re about to see clear regulatory guidelines on what it means to have a compliant token, which will reduce risks and encourage more institutional capital to flow into the market,” he said.
Lunardi also highlighted shifting market dynamics, including the waning influence of meme coins. While some view their decline as a bearish signal, he sees it as a healthy market evolution. He believes that liquidity previously tied up in speculative assets will transition to more established altcoins, strengthening the broader crypto ecosystem.
Another crucial factor, according to Lunardi, is the growing role of exchange-traded funds (ETFs). With major financial institutions embracing cryptocurrency investment vehicles, he expects ETFs to provide much-needed market stability and drive mainstream adoption. “The infrastructure for institutional capital is in place, with more ETFs opening up the market,” he explained.
While his primary focus remains on Bitcoin, Lunardi expressed optimism about Solana’s future, despite the current dominance of meme coins. He also suggested that the Trump Administration may prioritize U.S.-based cryptocurrencies with real-world applications, fostering a more favorable environment for domestic blockchain projects.
Despite his optimistic outlook, Lunardi acknowledged that macroeconomic factors could still present challenges. Global economic uncertainties, particularly tariffs and inflation, could impact the crypto market’s momentum. He cautioned that any escalation in tariffs or prolonged inflationary pressures might temper the pace of recovery.
As the industry navigates these challenges, Lunardi remains confident that regulatory clarity and institutional investment will serve as the foundation for a stronger, more resilient crypto market in the latter half of 2025.
