According to a recent research note from Steno Research, 2025 is expected to be the best year ever for the cryptocurrency market. With Bitcoin (BTC) and Ether (ETH) both projected to surpass all-time highs, other potential "remarkable positive developments" are also on the horizon.
BTC and ETH Price Projections
Steno Research predicts that BTC’s spot price will reach $150,000, while ETH’s spot price is expected to hit $8,000. These bullish projections reflect a number of favorable factors, including:
- Unprecedentedly favorable regulatory environment: Cryptocurrencies are gaining acceptance and support from regulatory agencies around the world.
- Supportive macroeconomic climate: Declining interest rates and improved liquidity are creating an environment conducive to cryptocurrency adoption.
- Historically strong post-Bitcoin-halving performance: The market has consistently seen significant price increases following each Bitcoin halving event.
Institutional Adoption on the Rise
In addition to these factors, institutional adoption is expected to reach unprecedented levels in 2025. This will be driven by significant inflows into U.S.-based Bitcoin and Ethereum exchange-traded funds (ETFs).
- Net inflows of $48 billion for BTC ETFs: Steno Research expects net inflows of $48 billion into BTC ETFs in 2025.
- Net inflows of $28.5 billion for ETH ETFs: Similarly, the research firm predicts net inflows of $28.5 billion into ETH ETFs.
Altcoin Season on the Horizon
Ether is poised to perform especially well in 2025, significantly outperforming Bitcoin according to Steno Research. In 2025, the ETH/BTC ratio is expected to hit "at least 0.06". This will usher in a broader alternative cryptocurrency — or "altcoin" — season in 2025.
- Bitcoin dominance dropping: With an anticipated decline in Bitcoin’s market capitalization share from nearly 57% to around 45%, this will create opportunities for altcoins to shine.
- Donald Trump’s presidency favors altcoins: Steno Research attributes this prediction partly to the argument that Donald Trump’s U.S. presidential victory is more favorable for altcoins than for Bitcoin.
Decentralized Applications on the Rise
The total value locked (TVL) in decentralized applications is expected to top $300 billion in 2025, far surpassing 2021’s highs of approximately $180 billion. This growth will be driven by increasing adoption and usage of decentralized finance (DeFi) protocols.
- Trump pump: Others, including asset manager Grayscale, are similarly optimistic about the prospects for cryptocurrencies in 2025.
- Grayscale adds DeFi applications to watchlist: In December, Grayscale added several DeFi applications, including two on Solana, to its list of the top 20 tokens to watch in the first quarter of 2025.
Conclusion
The cryptocurrency market is expected to experience significant growth and adoption in 2025. With BTC and ETH projected to surpass all-time highs, other potential "remarkable positive developments" are also on the horizon. As the market continues to evolve, it will be exciting to see how these predictions play out.