Key takeaways
- Bitwise CEO predicts growth in crypto due to a possible increase in mergers and acquisitions under the Trump administration.
- The concentration of corporate power may push individuals toward crypto assets.
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The Trump administration could revive M&A deals, which, in turn, could fuel crypto adoption as it reinforces the idea that decentralized systems are preferable to centralized institutions that may not act in the best interest of individuals, said Hunter Horsley, CEO of Bitwise Asset. Management.
M&A activity has remained neutral in recent years. Data from Dealogic shows that while total announced deals increased slightly in 2024, to $1.4 trillion from 2023, it still remains below pre-pandemic levels.
Trump’s return to the presidency is expected to bring several key factors that could boost M&A activity, including a favorable economic environment, lower interest rates and a change in regulatory policy.
2025 is shaping up to be a turning point, with the potential for a significant increase in the number and size of transactions.
“Large companies – mag 7, etc. – could finally be able to exercise their market capitalization. Amazon could buy Instacart. Google could buy Uber,” Horsley said.
This trend could lead to increased consolidation of power and market share in the hands of a few giants, thereby eliminating mid-sized companies that may struggle to compete with these larger entities. According to Horsley, increased consolidation and the growing power of large institutions will drive crypto adoption.
“The conceptual principle of cryptography is to not trust large institutions to do what is in your best interest. The increasing scale accentuates this,” he added.
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