Three most important crypto and tech investment lessons for 2025

Because of the arrival of ‘Boomer’ investors (who were introduced to crypto via BlackRock, Vanguard and other Bitcoin ETF providers) into crypto markets last year, the dynamics have shifted.

Firstly, it has been a while since we saw any major pullback in crypto markets and secondly, the negativity of 2022 seems to be a thing of the past.

After a fantastic 2024, what should we pay particular attention to in 2025? What lessons have we learned last year?

Dynamics

The year 2024 has confirmed for crypto that market dynamics are no longer limited to cyclical rises and falls, but that we must now also pay attention to other factors due to the contribution of institutional money (Wall Street).

Geopolitics plays a role from now on. Bitcoin, just like tech stocks, responds to what the Fed says and does, to the data points of the US economy and whether there is risk of global conflict.

Crypto and AI

Some of the big winners of 2024 for investors were stocks related to data (Palantir), AI (Vistra and Nvidia) and digital coins (MicroStrategy and Coinbase). While US stock markets rose an average of 20% during the year, those stocks rose by a multiple of that. Bitcoin itself added about 120%.

Whether we will get a similar result in 2025 is unclear, but it is clear that many investors will rush to buy in as from the moment one of these shares or Bitcoin itself seems cheap.

Emotion

The markets responded very strongly to emotion and trends in 2024. As a result, two words have made the transition from crypto to stock markets. They are FUD (Fear, Uncertainty, and Doubt) and FOMO (Fear of Missing Out).

FUD, which refers to fear, uncertainty and doubt and is fueled by negative or exaggerated information, can be amplified by social media and negatively affects the market. We currently see a globally fragile economic environment characterized by geopolitical tensions, a major war in Europe and growing concerns about the US debt ceiling.

FOMO, or the fear of missing an out, drives investors to jump into a speculative trend more quickly, often at the expense of any more rational analysis. The extreme volatility that we used to observe in memecoins has now even been witnessed in stocks. In the last few months of 2024, Microstrategy would let a daily 15% increase be followed by a 10% decrease the next day. Volatility in crypto is now also a fact in tech stocks.

Long term

All these new emotional phenomena, which are accentuated by the geopolitical and economic instability of recent years, demonstrate the extent to which crypto markets can now be influenced by rumors rather than fundamentals.

So I would advise not to get caught up in trends but rather make a plan for the long term. Day traders usually lose.

Happy trading everyone.