In a recent research note, Steno Research predicted that 2025 will be the best year ever for the cryptocurrency market. The analysts foresee remarkable positive developments, including Bitcoin (BTC) and Ether (ETH) surpassing all-time highs, among other potential milestones.
BTC and ETH Price Projections
According to Steno Research, BTC’s spot price is expected to reach $150,000, while ETH’s spot price will surpass $8,000. These predictions are based on an unprecedentedly favorable regulatory environment for cryptocurrencies, a supportive macroeconomic climate marked by declining interest rates and improved liquidity.
In addition, the analysts attribute the bullish projections to the historically strong post-Bitcoin-halving performance. "On top of this, institutional adoption is expected to reach unparalleled levels, further bolstered by significant inflows into U.S.-based Bitcoin and Ethereum ETFs," the report said.
ETF Inflows
Steno Research expects BTC and ETH exchange-traded funds (ETFs) to see net inflows in 2025 of $48 billion and $28.5 billion, respectively. This increased institutional adoption is likely to contribute to the growth of the cryptocurrency market.
Ether’s Promising Outlook
Steno believes that Ether will perform especially well in 2025, significantly outperforming Bitcoin. In 2025, Steno expects 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
The increased performance of Ether and other alternative cryptocurrencies will usher in a broader altcoin season in 2025. Bitcoin dominance is expected to drop from its current levels of nearly 57% to around 45%, according to the report.
Bitcoin dominance measures BTC’s percentage of crypto’s total market capitalization. Steno’s prediction is partly based on the argument that Donald Trump’s U.S. presidential victory is more favorable for altcoins than for Bitcoin.
Trump’s Presidency and Altcoins
Steno said, "Trump’s presidency encourages more robust onchain activity, which benefits altcoins such as Ethereum and Solana significantly." This increased adoption of alternative cryptocurrencies will contribute to the growth of the market.
Total Value Locked (TVL) in DeFi
Expect the total value locked (TVL) in decentralized applications to top $300 billion in 2025, far surpassing 2021’s highs of approximately $180 billion. This increased adoption of decentralized finance protocols will contribute to the growth of the market.
Industry’s Positive Outlook
Others, including asset manager Grayscale, are similarly optimistic. In December, Grayscale added several decentralized finance (DeFi) applications, including two on Solana, to its list of the top 20 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’s Views
Raj Brahmbhatt, CEO of Web3 settlement company Zeebu, told Cointelegraph in December, "In the US, with Trump’s victory, I am aggressively bullish on the US becoming a global leader in the space by the end of the year." This optimism is shared by Steno Research and other industry experts.
Conclusion
The cryptocurrency market has experienced significant growth over the past few years. With the predicted increase in institutional adoption, favorable regulatory environment, and historical post-Bitcoin-halving performance, 2025 may be the best year ever for the market. As the total value locked (TVL) in decentralized applications is expected to top $300 billion, and Bitcoin dominance is expected to drop, this may usher in a broader altcoin season.
Key Statistics
- BTC’s spot price: $150,000
- ETH’s spot price: $8,000
- Net inflows into U.S.-based Bitcoin and Ethereum ETFs: $48 billion (BTC) and $28.5 billion (ETH)
- Total value locked (TVL) in decentralized applications: $300 billion
- Bitcoin dominance: expected to drop from 57% to around 45%
Market Outlook
As the cryptocurrency market continues to grow, it is essential for investors to stay informed about the latest developments. With the predicted increase in institutional adoption, favorable regulatory environment, and historical post-Bitcoin-halving performance, 2025 may be a promising year for investors.
By staying up-to-date with the latest news and trends, investors can make informed decisions about their investments. This article provides an overview of the expected growth of the cryptocurrency market in 2025 and highlights some key statistics that investors should consider.
Sources
- Steno Research
- TradingView
- Cointelegraph
