2025: The Year Cryptocurrency Market Sees Remarkable Positive Developments
A Bullish Forecast for Bitcoin and Ethereum
Steno Research, a renowned research firm, has published a research note predicting that 2025 will be the best year yet for the cryptocurrency market. According to their analysis, both Bitcoin (BTC) and Ether (ETH) are poised to crush all-time highs, with potential remarkable positive developments expected in the coming year.
BTC and ETH Price Projections
The analysts at Steno Research are increasingly optimistic about an imminent altcoin season, which is reflected in their bullish price projections for BTC and ETH. They predict that both cryptocurrencies will surpass significant milestones: $150,000 for BTC and $8,000 for ETH. These forecasts are based on several factors, including:
- Favorable Regulatory Environment: The analysts attribute the positive outlook to an unprecedentedly favorable regulatory environment for cryptocurrencies.
- Supportive Macroeconomic Climate: Declining interest rates and improved liquidity create a conducive climate for cryptocurrency growth.
- Historical Performance Post-Bitcoin Halving: Past data shows that BTC often experiences significant price increases following halving events.
Institutional Adoption to Reach Unprecedented Levels
In addition to the favorable market conditions, Steno Research expects institutional adoption of cryptocurrencies to reach new heights in 2025. This growth will be further fueled by:
- Significant Inflows into U.S.-based Bitcoin and Ethereum ETFs: Net inflows of $48 billion for BTC ETFs and $28.5 billion for ETH ETFs are projected.
- Increased Institutional Participation: As more institutions become comfortable with cryptocurrency investing, demand will increase.
Altcoin Season and the Rise of Alternative Cryptocurrencies
Ether is expected to outperform Bitcoin in 2025, leading to a broader altcoin season. The analysts predict that the ETH/BTC ratio will hit at least 0.06, nearly double the current level of around 0.035. This development will be driven by:
- Robust Onchain Activity: Trump’s presidency is expected to encourage more onchain activity, which benefits altcoins such as Ethereum and Solana significantly.
- Bitcoin Dominance to Drop: As alternative cryptocurrencies gain traction, Bitcoin dominance is projected to decrease from its current levels of nearly 57% to around 45%.
Total Value Locked (TVL) in Decentralized Applications
The report also forecasts that the total value locked (TVL) in decentralized applications will surpass $300 billion in 2025. This represents a significant increase from the approximately $180 billion recorded in 2021.
Trump’s Impact on the Cryptocurrency Market
Donald Trump’s U.S. presidential victory is seen as favorable for altcoins, according to Steno Research. His presidency is expected to encourage more robust onchain activity, which benefits altcoins such as Ethereum and Solana significantly.
Others Share Similar Optimism
Asset manager Grayscale has expressed similar optimism regarding the cryptocurrency market in 2025. In December, they added several decentralized finance (DeFi) applications, including two on Solana, to their list of top tokens to watch in the first quarter of 2025.
Grayscale cited the warming US policy environment as a key factor driving their optimism. Trump has promised to appoint industry-friendly leaders to key regulatory agencies and make the US "the world’s crypto capital."
Conclusion
The cryptocurrency market is expected to see remarkable positive developments in 2025, with BTC and ETH projected to surpass all-time highs. The favorable regulatory environment, supportive macroeconomic climate, and historical performance post-Bitcoin halving are driving forces behind these predictions.
As institutional adoption continues to grow, the demand for cryptocurrencies will increase. The rise of alternative cryptocurrencies is also expected, driven by robust onchain activity and decreasing Bitcoin dominance.
The total value locked (TVL) in decentralized applications is projected to surpass $300 billion, representing a significant increase from 2021’s highs.
