2025 has not started off the way many crypto investors expected it would. As soon as President Donald Trump was elected last year, the immediate expectation was that big things were coming for crypto. But, thus far, they have not, with almost every major cryptocurrency down for the year.
But hope springs eternal. Bitcoin (CRYPTO: BTC) still has the potential to skyrocket in value this year. And it could be joined by XRP (CRYPTO: XRP) , which is up nearly 400% since the election. Let's take a closer look at why both should be on your investment radar right now.
Bitcoin
Last year, Bitcoin had two primary catalysts -- the launch of the new spot Bitcoin exchange-traded funds (ETFs) in January, and Trump's election in November. Together, they sent Bitcoin roaring to a new all-time high above $100,000.
But the hunt is now on for a new catalyst for Bitcoin in 2025. One of the biggest catalysts could be the creation of a strategic Bitcoin reserve by the U.S. government, which has the potential to send the price of Bitcoin soaring.
That's because the Bitcoin Act of 2024 calls for the U.S. government to buy 1 million Bitcoins over the next five years, equivalent to 5% of the entire circulating supply of Bitcoin. That, in turn, could force the hand of other sovereign governments to invest in Bitcoin as well.
Meanwhile, institutional investors continue to ratchet up their exposure to Bitcoin. According to the latest 13F filings with the Securities and Exchange Commission (SEC), institutional investors tripled their exposure to Bitcoin in the latest quarter, from $12.4 billion to $38.7 billion. And investment firm Bernstein thinks that's just the tip of the iceberg, with big-name pension funds and sovereign wealth funds potentially joining the mix later this year.
XRP
XRP has become the darling of crypto investors everywhere. And for good reason -- it has spectacularly outperformed the crypto market for months now. Just check out the chart below. After languishing around $0.50 for months, XRP suddenly went parabolic around November. It's now up 30% in 2025, and is one of the few bright spots in the crypto market.
But, just like Bitcoin, XRP needs a new catalyst in 2025. How much longer can investors rely on post-election euphoria to keep the price of XRP soaring?
The good news is that the approval of new spot XRP ETFs could be right around the corner. Investment firms continue to file spot XRP ETF applications with the SEC, and the thinking is that, sooner rather than later, one of these is actually going to be approved. When that happens, as much as $8 billion of new investor money could flow into XRP, according to J.P. Morgan .
The other potential catalyst for XRP is a growing rapprochement between Ripple (the company behind the XRP crypto token) and the U.S. government. For the past four years, Ripple has been engaged in a nasty legal battle with the SEC, and that has effectively stymied Ripple's expansion plans in the U.S. But the appointment of Paul Atkins as the new head of the SEC could change all that.
Moreover, Ripple CEO Brad Garlinghouse has been reaching out to the Trump White House about the potential for XRP to be added to a national digital assets stockpile. That's still unlikely to happen, but if it does, it could be off to the races for XRP.
The one crypto to avoid
Litecoin (CRYPTO: LTC) has been one of the big surprises of 2025 for crypto investors. It's up 30% this year, largely on the expectation that it, too, could get a spot ETF in 2025. Analysts at Bloomberg, for example, now give that a 90% chance of happening.
But here's the thing: I don't think that there will be much investor appetite for these ETFs. Primarily, that's because Litecoin has been a market laggard for years now . Quite simply, it lacks the type of massive upside potential that crypto investors crave.
Litecoin -- which has been around since 2011 -- primarily appeals to institutional investors who want a nice, safe coin that won't get regulated out of existence by the SEC. Unfortunately, that appeal has diminished tremendously in 2025, with the new pro-crypto approach of the Trump administration.
In 2025, investors no longer have to worry about Gary Gensler, the former head of the SEC, waking up one day and deciding that one of their cryptocurrencies is suddenly a security. While Litecoin has had a brief, impressive run in early 2025, this lightly tweaked carbon copy of the Bitcoin system is one coin that I would avoid this year.
The one crypto to buy hand over fist
If forced to pick between Bitcoin and XRP, I would choose Bitcoin. XRP might have the support of retail investors, but Bitcoin has the support of institutional investors. With a new wave of institutional money rolling in soon, Bitcoin could be the one coin you need to own in 2025.
Before you buy stock in Bitcoin, consider this:
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