According to Steno Research, a renowned market analysis firm, 2025 is poised to be the best year ever for the cryptocurrency market. The analysts predict that both Bitcoin (BTC) and Ether (ETH) will shatter all-time highs, marking remarkable positive developments in the space.
Bullish Projections for BTC and ETH
Steno Research forecasts that the spot prices of BTC and ETH will surpass $150,000 and $8,000, respectively. This optimistic outlook is attributed to several factors, including:
- Unprecedentedly Favorable Regulatory Environment: The analysts believe that the current regulatory landscape is conducive to cryptocurrencies, fostering growth and adoption.
- Supportive Macroeconomic Climate: Declining interest rates and improved liquidity are expected to contribute positively to the market’s overall performance.
- Historically Strong Post-Bitcoin-Halving Performance: BTC and ETH have consistently performed well in the aftermath of the Bitcoin halving, which is expected to continue in 2025.
Institutional Adoption on the Rise
The report also highlights the significant role that institutional adoption will play in driving market growth. With substantial inflows into U.S.-based Bitcoin and Ethereum ETFs, Steno expects these funds to reach unprecedented levels of $48 billion and $28.5 billion, respectively.
ETH Poised for Exceptional Growth
Steno Research is particularly bullish on Ether’s performance in 2025. The analysts predict that the ETH/BTC ratio will hit at least 0.06, nearly double its current level of around 0.035. This significant outperformance is expected to usher in a broader alternative cryptocurrency (altcoin) season.
Altcoin Season and Bitcoin Dominance
The report suggests that Bitcoin dominance will drop from its current levels of nearly 57% to around 45%. This decline in dominance is partly attributed to the favorable conditions for altcoins, which are expected to perform exceptionally well in 2025.
Trump’s Presidency and the Crypto Market
Steno’s prediction is also based on the argument that Donald Trump’s U.S. presidential victory will be more favorable for altcoins than for Bitcoin. The analysts believe that Trump’s presidency will encourage more robust on-chain activity, benefiting altcoins such as Ethereum and Solana significantly.
Record-Breaking TVL in DeFi Applications
The report forecasts that the total value locked (TVL) in decentralized applications will top $300 billion in 2025. This represents a significant increase from the 2021 highs of approximately $180 billion, indicating a growing demand for decentralized finance solutions.
Similar Optimism from Other Market Participants
Asset manager Grayscale shares similar optimism regarding the cryptocurrency market’s prospects in 2025. In December, Grayscale added several decentralized finance (DeFi) applications, including two on Solana, to its list of top tokens to watch in the first quarter of 2025.
Grayscale cited the warming US policy environment as a key factor contributing to their optimism. Trump has promised to appoint industry-friendly leaders to key regulatory agencies and make the US "the world’s crypto capital."
Trump’s Impact on the Crypto Market
Raj Brahmbhatt, CEO of Web3 settlement company Zeebu, expressed his bullish views on the U.S. becoming a global leader in the space by the end of the year.
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