Key Takeaways
- Bitwise CEO predicts crypto growth due to potential M&A boom under Trump administration.
- The concentration of physical power can move individuals to crypto assets.
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The Trump administration could revive M&A deals, which, in turn, could encourage crypto adoption as this reinforces the idea that decentralized systems are better the centralized institutions may not work in the best interests of individuals, said Hunter Horsley, CEO of Bitwise Asset. Management.
M&A activity has been in neutral for the past few years. Data from Dealogic shows that, although 2024 saw a slight increase in nominal contracts to $1.4 trillion compared to 2023, it still falls short of pre-pandemic levels.
Trump's return as president is expected to bring forward several key factors that could boost M&A activity, including a favorable economic environment, lower interest rates, and a shift in regulatory policies.
2025 is shaping up to be a turning point, with the potential for a significant increase in both the number and size of contracts.
“Big corporations – mag 7, etc – may be able to consume their market cap. Amazon could buy Instacart. Google could buy Uber,” Horsley said said.
This trend could lead to a greater consolidation of power and market share in the hands of a few giants, which could squeeze medium-sized companies that might find it difficult to compete with these large groups. According to Horsley, increased consolidation and the growing power of large institutions will drive the adoption of crypto.
“The basic concept of crypto is not relying on big institutions to do what you need. Big growth puts pressure on this,” he said.
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