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Bitwise Predicts a “New Long-Tail Capital Market” in 2025 Driven by AI and Tokenization

As we enter a new year, many experts are sharing their predictions for the future of cryptocurrency. One notable prediction comes from Hunter Horsley, CEO of Bitwise, who believes that 2025 may see a boom in smaller, niche businesses aided by AI and tokenization, increased corporate Bitcoin adoption, and an "unfreezing" of mergers and acquisitions.

Tokenization to Help Small Businesses

In one of his posts on X (formerly Twitter), Horsley made some predictions about tokenization. He argued that the focus has been on demand-side benefits, such as democratizing access to money market funds, while the real revolutionary potential lies on the supply side. Tokenization’s transformative power may come from enabling a vast untapped supply of smaller businesses to access capital markets.

Tokenization Industry: The Next Key Narrative in 2025

According to Edwin Mata, founder and CEO of Brickken, the real-world asset (RWA) tokenization industry may be the next key narrative in the crypto space in 2025. He explained that "real-world asset tokenization is transforming traditional markets by enabling assets like real estate, debt, and equity to be digitized and traded on the blockchain."

AI-Driven Explosion of Micro Companies

Horsley also predicted that AI may lead to an explosion of companies and tokenized companies. He stated, "I think AI may lead to an explosion of companies and tokenized companies. These could never go public but could tokenize. It could be a major new long-tail capital market."

Bitcoin Standard Corporations: A Major Theme in 2025

Horsley also predicted that a major theme in 2025 will be the arrival of "Bitcoin Standard Corporations," companies that hold BTC on their balance sheets. He said, "2025 is going to see a lot of corporations joining the Bitcoin standard."

MicroStrategy: The Largest Corporate Holder of BTC

As an example of this trend, Horsley mentioned MicroStrategy, which has hinted at another Monday purchase and is currently the largest corporate holder of BTC, with 446,400 coins worth around $43.7 billion at current market prices.

Unfreezing M&A: Good for Crypto

Horsley also predicted that the forthcoming Trump administration in the US may "unfreeze" mergers and acquisitions for large corporations, which is good for crypto. He stated, "The big may get bigger, and the middle may shrink… If that happens, I think it will accelerate crypto."

Why Large Corporations Matter

Horsley explained that large corporations operate under self-interest rather than the interest of their users. He said, "The conceptual premise of crypto is not trusting large institutions to do what’s in your best interest. The big getting bigger accentuates this."

What Does This Mean for Crypto?

If Horsley’s predictions come true, it could mean a significant increase in corporate Bitcoin adoption and a boost to the overall cryptocurrency market. It also highlights the potential of tokenization and AI-driven companies to democratize access to capital markets.

Conclusion

In conclusion, Hunter Horsley’s predictions for 2025 offer a glimpse into the future of cryptocurrency. With the potential for smaller businesses to access capital markets through tokenization, increased corporate Bitcoin adoption, and an "unfreezing" of mergers and acquisitions, it’s clear that 2025 will be an exciting year for crypto.

What Do You Think?

Do you agree with Horsley’s predictions? What do you think the future holds for cryptocurrency in 2025? Share your thoughts in the comments below!

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Related Topics

  • Tokenization
  • Artificial Intelligence (AI)
  • Cryptocurrency Market
  • Bitcoin Adoption
  • Mergers and Acquisitions

Recommended Resources

  • Brickken: Real-World Asset Tokenization Industry Report
  • Bitwise: Crypto Investment Strategy for 2025
  • MicroStrategy: Bitcoin Adoption in Corporate America