A recent research note from Steno Research has sparked optimism in the cryptocurrency market, with predictions that 2025 will be the best year ever for cryptocurrencies. According to the report, both Bitcoin (BTC) and Ether (ETH) are expected to crush all-time highs, among other potential "remarkable positive developments."
Bullish Projections for BTC and ETH
Steno Research predicts that BTC’s spot price will surpass $150,000, while ETH’s spot price is expected to reach $8,000. The analysts are also increasingly optimistic about an imminent altcoin season.
The bullish projections reflect several factors, including:
- Unprecedentedly Favorable Regulatory Environment: Cryptocurrencies have received increased support from regulatory agencies in recent years.
- Supportive Macroeconomic Climate: Declining interest rates and improved liquidity have created a favorable environment for cryptocurrency adoption.
- Historically Strong Post-Bitcoin-Halving Performance: The halving of Bitcoin’s block reward has historically led to a surge in price.
Institutional Adoption Reaches Unparalleled Levels
In addition to the favorable regulatory environment and macroeconomic climate, institutional adoption is expected to reach unprecedented levels. Significant inflows into U.S.-based Bitcoin and Ethereum exchange-traded funds (ETFs) are expected, with Steno predicting net inflows of $48 billion and $28.5 billion, respectively.
ETH Poised for Exceptional Growth
Ether is expected to perform especially well in 2025, significantly outperforming Bitcoin. According to Steno Research, the ETH/BTC ratio is expected to hit at least 0.06, nearly double its current level of around 0.035.
This will usher in a broader altcoin season in 2025, with Bitcoin dominance dropping from its current levels of nearly 57% to around 45%. The prediction is partly based on the argument that Donald Trump’s U.S. presidential victory is more favorable for altcoins than for Bitcoin.
Trump Pump and Altcoin Season
The predicted growth of altcoins, including Ethereum and Solana, can be attributed in part to the "Trump pump." According to Steno Research, Trump’s presidency encourages more robust on-chain activity, which benefits altcoins significantly.
DeFi Applications See Significant Growth
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 can be attributed to the increasing adoption of decentralized finance (DeFi) protocols.
Others Share Similar Optimism
Others, including asset manager Grayscale, share similar optimism about the cryptocurrency market in 2025. In December, Grayscale added several 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. Trump has promised to appoint industry-friendly leaders to key regulatory agencies and make the US "the world’s crypto capital."
Industry Expert Shares Insights
Raj Brahmbhatt, CEO of Web3 settlement company Zeebu, told Cointelegraph in December that he is aggressively bullish on the US becoming a global leader in the space by the end of the year.
Conclusion
The predictions made by Steno Research and others share a common thread: 2025 will be a breakout year for cryptocurrencies. With favorable regulatory environments, supportive macroeconomic climates, and increasing institutional adoption, it’s clear that the cryptocurrency market is poised for significant growth in the coming years.
Whether you’re an investor or a trader, it’s essential to stay informed about the latest developments in the market. Stay tuned to Cointelegraph for more insights, analysis, and news on the world of cryptocurrencies.
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