Key conclusions
- The CEO of Bitwise predicts the growth of cryptocurrencies due to a possible increase in mergers and acquisitions under the Trump administration.
- The concentration of corporate power can drive individuals into crypto assets.
The Trump administration may revive M&A deals, which could boost cryptocurrency adoption as it reinforces the idea that decentralized systems are preferable to centralized institutions that may not act in the best interests of individuals, said Hunter Horsley, CEO of Bitwise Asset Management.
M&A activity has been neutral for the past few years. data from Dealogic shows that while 2024 saw a slight increase in total forecast deals to $1.4 trillion compared to 2023, it still falls short of pre-pandemic levels.
Trump’s return to the presidency is expected to bring several key factors that could boost M&A activity, including a favorable economic environment, lower interest rates and a change in regulatory policies.
The year 2025 promises to be a turning point, with the potential for a large increase in the number and size of deals.
“Big companies – mag 7 etc. – may finally be able to use their market capitalization. Amazon could buy Instacart. Google could buy Uber,” Horsley stated.
This trend could lead to further consolidation of power and market share in the hands of a few giants, potentially crowding out mid-sized companies that could struggle to compete with these larger entities. According to Horsley, increased consolidation and the growing power of large institutions will drive crypto adoption.
“The conceptual premise of cryptocurrencies is not to trust large institutions to do what is in your best interest. The big increase highlights that,” he added.
