Why are cryptocurrencies continuing to rise now?

Looking at the recent financial markets, the rise in cryptocurrency prices shows no signs of stopping. Behind this trend are not just mere speculative enthusiasm but a complex interplay of multiple structural factors. Major companies like Amazon and Walmart have begun accepting Bitcoin payments, transforming cryptocurrencies from “investment assets” to “practical payment methods.” At the same time, as pointed out in JPMorgan Chase’s 2025 report, institutional crypto investments have increased by 30% year-over-year, indicating a significant change in the market structure itself.

The Impact of the Rise of Institutional Investment

The primary reason for the upward trend in cryptocurrencies is the entry of institutional investors. What was once considered a playground for individual traders is now being seriously incorporated by major financial institutions as part of their asset allocation, including Bitcoin and other cryptocurrencies. This is not just a numerical change but signifies a qualitative increase in overall market confidence. The inflow of institutional funds stabilizes prices and enhances market stability—one of the main factors driving continuous growth in cryptocurrencies.

Technological Advancements Enhance Practicality

Rapid improvements in blockchain technology cannot be overlooked. Especially with the upgrade to Ethereum 2.0 and the transition to Proof of Stake (PoS), transaction speeds have dramatically increased, and energy consumption has been significantly reduced. These technological evolutions have enabled cryptocurrencies to function not just as investment products but as usable currencies. As applications expand from individual use to inter-company transactions, demand and value naturally increase.

Regulatory Environment Fosters Confidence

Globally, regulatory frameworks for cryptocurrencies are being established. With the implementation of the EU’s MiCA (Markets in Crypto-Assets Regulation) early in 2025, European investors now have legal protections that allow them to invest in cryptocurrencies with greater confidence. As regulatory transparency increases, even cautious and conservative investors who were previously hesitant are more likely to participate. This is a crucial driving force behind the upward movement of cryptocurrencies.

Expansion of Real-World Use Cases

Remitly and Western European remittance companies are utilizing blockchain to enable low-cost, fast international money transfers. Platforms like Filecoin are revolutionizing the storage and monetization of digital content. Furthermore, Expedia and Airbnb now support cryptocurrency payments, significantly improving convenience for international travelers. As these real-world examples increase, the significance of cryptocurrencies deepens, and the market size continues to expand.

Conclusion: Multifaceted Growth Supports the Rise

The continued rise of cryptocurrencies is driven by a combination of increased institutional investment, technological innovation, clearer regulations, and adoption by mainstream companies—all interacting with each other. Understanding these dynamics allows investors and users to navigate the crypto market more strategically. The market environment is still rapidly evolving, and the potential for cryptocurrencies to integrate further into various economic sectors remains high.