Key Takeaways
Bitwise CEO anticipates crypto growth due to potential M&A surge under Trump administration.
Concentration of corporate power may drive individuals towards crypto assets.
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The Trump administration may revive M&A deals, which, in turn, could fuel crypto adoption as this reinforces the idea that decentralized systems are preferable to centralized institutions that may not act in the best interests of individuals, said Hunter Horsley, the CEO of Bitwise Asset Management.
M&A activity has been stuck in neutral for the past few years. Data from Dealogic shows that while 2024 saw a slight uptick in total announced deals to $1.4 trillion compared to 2023, it still falls short of pre-pandemic levels.
The return of Trump as president is expected to bring along several key factors that could spur 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 huge surge in both the number and size of deals.
“Large corporates — mag 7, etc — may finally be able to wield their market cap. Amazon could buy Instacart. Google could buy Uber,” Horsley stated.
This trend could lead to further consolidation of power and market share in the hands of a few giants, potentially squeezing out mid-sized companies that might struggle to compete with these larger entities. According to Horsley, increased consolidation and the growing power of large institutions will drive adoption of crypto.
“The conceptual premise of crypto is not trusting large institutions to do what’s in your best interest. The big getting bigger accentuates this,” he added.
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