- Trump’s presidency could boost M&A activity and spur cryptocurrency adoption through decentralized alternatives
- Corporate giants like Amazon and Google have strengthened blockchain integration, indicating increased cryptocurrency adoption
After a rough end to 2024, Bitcoin [BTC] witnessed a week of bullish momentum fueled by New Year’s optimism. In fact, the king’s coin retained its stability between soon after, hitting the $98,000-$99,000 mark for two consecutive days before breaching $100,000 again.
Nevertheless, as Donald Trump’s inauguration approaches, market participants are preparing for potential shifts in the crypto landscape.
What could drive cryptocurrency adoption?
An interesting shift is the revival of M&A activity. In his latest X (formerly Twitter) afterHunter Horsley, CEO of Bitwise Asset Management, put it in the spotlight.
He emphasized that mergers and acquisitions under the Trump administration could boost cryptocurrency adoption by underscoring the advantages of decentralized systems over centralized institutions that may not prioritize individual interests.
For those who don’t know, mergers and acquisitions (M&A) have remained subdued in recent years. The total number of deals announced in 2024 reached $1.4 trillion – an improvement over 2023, but still behind pre-pandemic figures, according to Dealogical.
However, Trump’s return to the presidency is expected to reignite merger and acquisition activity. This could be caused by factors such as a more favorable economic environment, lower interest rates and regulatory shifts.
Will 2025 be the year for crypto?
With these changes underway, 2025 is poised to be a key year, potentially marked by a significant increase in both the volume and scale of mergers and acquisitions.
Horsley noted the same, adding:
“Large companies – mag 7, etc. – can finally use their market cap. Amazon could buy Instacart. Google could buy Uber.”
That said, the expected increase in M&A activity could strengthen market consolidation. This would place greater power and control in the hands of dominant companies. This trend could pose a challenge for mid-market companies, which could struggle to compete with the growing influence of industry giants.
Horsley further suggested that such consolidation is likely to fuel interest in cryptocurrencies.
Why? Because individuals and companies can increasingly turn to decentralized systems as an alternative to centralized institutions that prioritize their own interests over broader market justice.
He added:
“The conceptual premise of crypto is that you should not trust large institutions to do what is in your interest. The growing size accentuates this.”
The role of big tech giants
Furthermore, the convergence of corporate giants like Google and Amazon with the blockchain sector further highlights the accelerated adoption of decentralized technologies. From Amazon’s Managed Blockchain to Google’s Blockchain-as-a-Service on Google Cloud, these initiatives underscore the growing integration of blockchain within enterprise infrastructure.
All this combined with Trump’s election victory, which has revived the cryptocurrency market by pushing Bitcoin from $69,000 in November to over $100,000 at the time of writing, are signs of the momentum and a new era for digital assets.
Ergo, as institutions deepen their involvement in blockchain, the potential for widespread cryptocurrency adoption appears stronger than ever.