A recent research note by Steno Research suggests that 2025 will be the best year yet for the cryptocurrency market. With both Bitcoin (BTC) and Ether (ETH) expected to crush all-time highs, this prediction is backed by several remarkable positive developments.
Record-Breaking Price Projections for BTC and ETH
According to Steno Research, BTC’s and ETH’s spot prices are predicted to surpass $150,000 and $8,000, respectively. This bullish outlook reflects the analysts’ increasingly optimistic views on an imminent altcoin season.
Unprecedented Favorable Regulatory Environment
The report highlights three key factors contributing to this optimism:
- Favorable regulatory environment: A supportive macroeconomic climate marked by declining interest rates and improved liquidity.
- Historically strong post-Bitcoin-halving performance: The historically strong post-Bitcoin-halving performance is a significant factor in the prediction of price increases.
Institutional Adoption to Reach Unparalleled Levels
The analysts also expect institutional adoption to reach unprecedented levels, further bolstered by significant inflows into U.S.-based Bitcoin and Ethereum ETFs. Steno expects BTC and ETH exchange-traded funds (ETFs) to see net inflows in 2025 of $48 billion and $28.5 billion, respectively.
ETH Poised for Exceptional Performance
Ether is poised to perform especially well in 2025, significantly outperforming Bitcoin, according to Steno Research. In 2025, the analysts expect the ETH/BTC ratio to hit ‘at least 0.06’. This is nearly double the current level of around 0.035, according to TradingView.
Altcoin Season on the Horizon
The expected increase in the ETH/BTC ratio will usher in a broader alternative cryptocurrency (altcoin) season in 2025. According to the report, Bitcoin dominance is expected to drop from its current levels of nearly 57% to around 45%.
Total Value Locked in DeFi Protocols to Reach $300 Billion
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.
Similar Optimism from Grayscale and Others
Others, including asset manager Grayscale, are similarly optimistic about the cryptocurrency market. In December, Grayscale added several decentralized finance (DeFi) applications to its list of top tokens to watch in the first quarter of 2025.
Warming US Policy Environment
Grayscale cited the warming US policy environment as a key factor contributing to their optimism. Donald Trump’s presidency is expected to bring more favorable regulatory conditions for cryptocurrencies, encouraging robust on-chain activity and benefiting altcoins such as Ethereum and Solana significantly.
Altcoin Season Expected to be Fueled by Institutional Adoption
Others are also optimistic about the potential for an altcoin season in 2025. 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
While some analysts remain skeptical about the cryptocurrency market’s potential, Steno Research and others are increasingly optimistic about 2025 being the best year yet for the industry.
