Why Investors and Traders Should Benefit from Crypto Market Momentum

By Marcelina Horrillo Husillos, Journalist and Correspondent at The European Business Review 

Crypto is a highly volatile market. Significant price swings, which would be considered major events in traditional financial markets, are a common occurrence in the crypto market. Recurrent issues in what respect to the unsorted regulation have an impact in traders and investors discouraging new-comers.

In the last period however, many advancements are pushing forward the still novel sector of Cryptocurrency bringing to traders and investors new opportunities. The surge of bitcoin, the rise of the trend of AI Tokens, the change of Regulation and the GENIUS Act are some of the innovations consolidating a Market Momentum in Crypto not to miss out by traders and investors.

The cryptocurrency market is currently at a $3.4 trillion market cap. It surged as high as $3.8 trillion in December 2024.

The rising trend was impacted by the US trade tariffs in Q1 of 2025, causing a short-term decline and high volatility in Bitcoin. But cryptocurrency appears to be firmly on the rise once again.

Blockchain technology and AI is being gradually adopted by the Crypto market to stay competitive. Traders embrace new tools and technologies, such as AI-driven analytics and blockchain-based solutions, to enhance their trading strategies. AI tokens are in a rising trend, and these are cryptocurrencies designed to support applications and services that use artificial intelligence within the blockchain ecosystem.

Policies in what respect to regulation of Crypto vary by country, but the US administration has favored a permissive and hands-off approach specially since the re-election of Donald Trump.

Bitcoin surge

Looking back, the actual Bitcoin peak in 2024 exceeded predictions by a huge margin, reaching $106,140 mid-December.

The value of Bitcoin surged 150% coming into 2024. And many believe this will keep run could last well into 2025.

Crypto-linked investment products broke a 15-week streak of capital inflows and recorded net outflows of $223 million, according to the latest CoinShares report.

The shift came after the Federal Reserve signaled it may keep interest rates elevated for longer, following economic data that showed a strong labor market and persistent inflation in the U.S.

Yet despite the uncertainties, Bitcoin is showing remarkable resilience, and it’s already showing signs of bouncing back in 2025 Q2. In fact, it has hit new heights, surpassing $111,000.

Two major factors helped to spark this bull market: the approval of spot ETFs and the latest halving event, both of which took place last year.

Brokerages began designing Bitcoin ETFs as early as 2013, but the spot ETF wasn’t approved by the SEC until January 2024.

These funds consist of crypto that’s purchased by the financial firm and then offered as shares to investors. The investors never actually hold any Bitcoin, but the ETF tracks with Bitcoin’s market value.

Funding, Mergers, and Acquisitions

The last few years have been volatile for crypto funding. 2022 was a year of crypto bankruptcies.

But in late 2023, investor confidence returned. And there has been a steady trend of renewed investment since then. Venture capital investment in crypto startups hit $4.9 billion in Q1 2025, the highest figure in over 2 years

The quarter’s largest investment, valued at $2 billion, went to Binance. The cryptocurrency exchange has become the go-to place for traders, with a higher daily trading volume than any other platform. As of May 2025, Binance receives 76.7 million visitors each month.

Among the 445 other deals (up 7.5% quarter-over-quarter), investments focused on early-stage crypto startups. Investors say funding in the next year will be focused on real-world applications of blockchain and the infrastructure needed to implement these applications. That includes integration between fintech companies and crypto ecosystems.

A spike of IPOs and mergers and acquisitions is also expected for 2025. Total venture funding in crypto this year is projected to pass $18 billion. 

AI Tokens Rising Trend

AI tokens is a form of digital currency that uses artificial intelligence. These are cryptocurrencies designed to support applications and services that use artificial intelligence within the blockchain ecosystem.

AI tokens continue to gain momentum as key projects demonstrate strong price performance and growing adoption, positioning them as potential top AI acquisitions of 2025. In recent months, AI has been working its way into the world of cryptocurrency.

There are over 200 AI tokens in the crypto space right now. In April 2023, the combined market value of AI tokens was just $2.7 billion. Now it’s surpassed $36 billion.

AI tokens offer support across three main areas: facilitating transactions, enabling protocol governance to allow users to have a say in the development of an AI platform, and mediating token-based reward systems to incentivize them to do so.

Changing Regulation

Governments worldwide are getting to grips with crypto regulation. But policies vary massively by country, but Trump’s administration has been more permissive. In his first week in office, he signed an executive order authorizing a more “light-touch” regulation of the industry.

Donald Trump has been a supporter of Bitcoin since returning to the White House — vowing to transform America into the “crypto capital of the world.” But the president has previously sparked controversy by launching his own range of non-fungible tokens — not to mention an official meme coin — it’s fair to say Trump isn’t doing this out of kindness. The policies he’s pushing are beneficial to his own business empire, despite White House Press Secretary Karoline Leavitt repeatedly insisting they do not amount to a conflict of interest.

The Genius Act

The GENIUS Act (“Guiding and Establishing National Innovation for U.S. Stablecoins Act”) marks the United States’ first major legislative step towards regulating stablecoins. With this bill, it joins a growing list of countries seeking to bring oversight and stability to the rapidly expanding digital asset ecosystem. This act aims to provide clear regulatory guardrails for the industry.

The GENIUS Act designates “primary Federal payment stablecoin regulators” (notably the OCC for national banks and certain non-banks). It preserves a role for qualified state regimes via a certification process. It also stands up a Stablecoin Certification Review Committee to vet state frameworks and specific issuer applications. Treasury and other agencies get defined roles, particularly around AML/CFT and foreign stablecoin reciprocity.

Conclusion

Investing in cryptocurrency is a high-risk, high-reward strategy. Making the decision to invest in it is complex and depends on a variety of factors, including your personal financial goals, risk tolerance, current trends and policies, and understanding of the market.

Analysts forecasting substantial profit potential for undervalued crypto assets through 2025. Traders and Investors can benefit from the Market Momentum, as Bitcoin’s surge creates optimism across cryptocurrency markets. It encourages Traders and Investors, especially in the US, where the Trump’s administration has favoured a hands-off regulation approach.

As AI and Blockchain-based technologies are gradually adopted by the Crypto market, the coin is becoming a more competitive product pushing forward to expand on digital driven solutions aiming to support traders and investors on their predictions.

Crypto seems promising sector in the next few years, but it will be also accompanying a high degree of ups and downs along the way. If potential investors and traders are able to riding the waves of the Cryptocurrency market, they will learn everything about the crypto market, develop a clear plan that aligns with their goals, and make the most of the tools and information that is out there, but doing so could lead to generous trading profits.

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