Key Takeaways
- Bitwise CEO predicts cryptocurrency growth due to possible surge in M&A under Trump administration.
- Concentration of corporate power may drive individuals into cryptocurrency assets.
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Hunter Horsley, CEO of Bitwise Asset, said the Trump administration could restart M&A deals, which could eventually boost cryptocurrency adoption. This is because it reinforces the idea that decentralized systems are better than centralized institutions that may not act in the best interests of individuals. management.
M&A activity has been neutral over the past few years. Data from Dealogic shows that total announced deal value in 2024 increased slightly to $1.4 trillion compared to 2023, but still remains below pre-pandemic levels.
President Trump’s return is expected to bring several key factors that could boost M&A activity, including a favorable economic environment, lower interest rates, and changes in regulatory policy.
2025 is expected to be a turning point with the potential for a significant surge in both the number and volume of transactions.
“Large companies such as mag 7 can finally exercise their market capitalization. Amazon could buy Instacart. Google could acquire Uber,” Horsley said.
This trend could lead to further consolidation of power and market share in the hands of a few giant players, potentially putting pressure on mid-sized companies that may struggle to compete with these larger players. According to Horsley, increasing consolidation and the growing power of large institutions will drive cryptocurrency adoption.
“The conceptual premise of cryptocurrency is not to trust large institutions to do what is in your best interest. “The growing size further emphasizes this,” he added.
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