Crypto Market Set for Growth in H2 2025 Amid Economic Recovery and Regulatory Clarity

A more optimistic macroeconomic outlook, increasing corporate interest in digital assets, and greater regulatory clarity are expected to drive crypto market momentum in the second half of 2025, according to a report by Coinbase Research.

After a rocky first quarter marked by a brief U.S. GDP dip and trade disruptions, indicators now point to a stronger economic rebound. The Atlanta Fed’s GDPNow model projects 3.8% quarter-over-quarter growth as of early June, fueled by expectations of Federal Reserve rate cuts and reduced trade tensions—helping ease recession concerns and bolstering investor sentiment.

Coinbase notes that weakening U.S. dollar dominance and bitcoin’s appeal as an inflation hedge may further support BTC prices, even if long-term Treasury yields remain elevated. Altcoins, however, may underperform without clear catalysts like ETF approvals or key protocol upgrades.

Corporations are also expanding their crypto exposure, leveraging a 2024 rule change that allows mark-to-market accounting for digital assets. This shift enhances demand but introduces new risks, especially for firms relying on convertible debt to finance purchases. Volatility or refinancing challenges could force sell-offs.

On the regulatory front, momentum is building. The Senate has passed the bipartisan GENIUS Act, a stablecoin-focused bill now moving to the House. Additionally, the CLARITY Act seeks to clearly define oversight roles for the SEC and CFTC in crypto markets—potentially transforming the legal landscape for digital asset issuers and investors.

Meanwhile, the SEC is reviewing over 80 crypto ETF applications, including those tied to staking and altcoins. Decisions could begin in July, with most finalized by October.

Coinbase concludes that while bitcoin is well-positioned to gain from macroeconomic and regulatory trends, altcoins face a more uncertain path in a complex, evolving environment.