Cryptocurrency and Its Impact on Investment Strategies - Sigmanomics

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Cryptocurrencies have developed from a niche concept to a financial force in a little over a decade, impacting investment strategies, finance, and even monetary policy. With Bitcoin currently trading above 90,000 as of May 2025, the second half of the year will surely put a stamp on this years mark for digital assets. We will explore how crypto-currency has reshaped financial landscape in 2025, key milestones made, and regulatory responses to date.

Bitcoin has developed from peer-to-peer cash system to a store of value since its inception in 2009 followed by Ethereum, which launched in 2015. The latter introduced smart contracts, which enabled decentralized applications (dApps). With the shift to proof-of-stake, crypto currency matured to and became viable for mass adoption that we are witnessing today. As of late, tokenized stocks, real estate, bonds and more have opened up illiquid markets to global retail investors.

Governments have also launched their own digital currencies known as CBDC’s, which are blockchain-based.

Feature	CBDCs	Cryptocurrencies
Control	Centralized	Decentralized
Privacy	Low	High (in some cases)
Supply	Managed	Algorithmic/fixed
Purpose	Monetary policy, compliance	Peer-to-peer exchange, decentralization

As of today, regulation continues to be a crucial crossroad for cryptocurrencies, with governments taking different approaches globally.

Country	Stance
U.S.	Fragmented, with SEC and CFTC disputes over jurisdiction
EU	MiCA framework implemented, providing regulatory clarity
Japan	Pro-innovation, clear licensing rules for exchanges
India	Strict capital gains tax but legal trading environment
Nigeria	Embracing blockchain innovation while restricting crypto-to-fiat conversion

Technical Analysis

Bitcoin Weekly Chart

Taking a look at the Bitcoin weekly chart, the pair appears to have formed a 4th wave, according to Elliott wave theory, with a possible 5th wave on the horizon pointing to new highs so long as cryptocurrency remains above 70,000. If indeed another high is made, we do not rule out a major pullback as divergence is apparent in the sub chart and will deepen should a new high appear. With a break above, extension levels lie at 118,558 (50%) and 125,494 (61.8%).

Looking ahead, the next decade may depict a total different look of cryptocurrency as projects continue to unravel. Analysts are projecting tokenized equities to outpace traditional stock trading volumes and countries with unstable currencies could dollarize through stablecoins. The challenge lies in balancing protective measures with innovation, trust, and governance.

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