According to a recent research note by Steno Research, the cryptocurrency market is poised to experience its best year ever in 2025. With Bitcoin (BTC) and Ethereum (ETH) expected to crush all-time highs, as well as other potential "remarkable positive developments," the analysts are increasingly optimistic about the future of cryptocurrencies.
BTC and ETH Price Projections
Steno Research predicts that BTC’s spot price will surpass $150,000 in 2025, while ETH’s spot price is expected to reach $8,000. These bullish projections reflect an "unprecedentedly favorable regulatory environment for cryptocurrencies," a supportive macroeconomic climate marked by declining interest rates and improved liquidity, and the historically strong post-Bitcoin-halving performance.
Historical Context
The analysts at Steno Research point out that institutional adoption is expected to reach unparalleled levels in 2025. This will be further bolstered by significant inflows into U.S.-based Bitcoin and Ethereum exchange-traded funds (ETFs). In fact, Steno expects BTC and ETH ETFs to see net inflows of $48 billion and $28.5 billion, respectively, in 2025.
Regulatory Environment
The favorable regulatory environment for cryptocurrencies is a key factor driving the analysts’ optimism. With a supportive macroeconomic climate marked by declining interest rates and improved liquidity, the stage is set for significant growth in the cryptocurrency market.
Institutional Adoption
Institutional adoption is expected to play a major role in the growth of the cryptocurrency market in 2025. With significant inflows into U.S.-based Bitcoin and Ethereum ETFs, the analysts at Steno Research believe that institutional investors will be increasingly active in the market.
Altcoin Season
Altcoin season is expected to usher in a broader alternative cryptocurrency (altcoin) season in 2025. According to Steno Research, the ETH/BTC ratio is expected to hit "at least 0.06" in 2025, nearly double the current level of around 0.035. This will lead to a drop in Bitcoin dominance from its current levels of nearly 57% to around 45%.
Total Value Locked (TVL)
The total value locked (TVL) in decentralized applications is forecasted to top $300 billion in 2025, far surpassing 2021’s highs of approximately $180 billion. This will be driven by the growing adoption of decentralized finance (DeFi) protocols and the increasing popularity of decentralized applications.
Trump Pump
The analysts at Steno Research believe that the victory of Donald Trump in the U.S. presidential election is a key factor driving their optimism. Trump’s presidency "encourages more robust on-chain activity, which benefits altcoins such as Ethereum and Solana significantly," according to the report.
Industry Reaction
Others, including asset manager Grayscale, are similarly optimistic about the future of cryptocurrencies. 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’s Outlook
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."
Industry Expert Reaction
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" due to Trump’s victory.
Conclusion
In conclusion, the cryptocurrency market is poised for unprecedented growth in 2025. With BTC and ETH expected to crush all-time highs, as well as other potential "remarkable positive developments," the analysts at Steno Research are increasingly optimistic about the future of cryptocurrencies. Institutional adoption, a favorable regulatory environment, and the historically strong post-Bitcoin-halving performance will drive growth in the market.
Implications
The implications of these projections are significant. With the total value locked (TVL) in decentralized applications expected to top $300 billion in 2025, investors will be looking for ways to participate in this growing market. The analysts at Steno Research believe that institutional investors will play a major role in driving growth in the market.
Investment Opportunities
The growth of the cryptocurrency market presents significant investment opportunities for investors. With BTC and ETH expected to crush all-time highs, as well as other potential "remarkable positive developments," investors will be looking for ways to participate in this growing market.
Mitigating Risks
While the projections presented by Steno Research are optimistic, there are risks associated with investing in cryptocurrencies. Investors should conduct thorough research and due diligence before making investment decisions.
Conclusion
In conclusion, the cryptocurrency market is poised for unprecedented growth in 2025. With BTC and ETH expected to crush all-time highs, as well as other potential "remarkable positive developments," investors will be looking for ways to participate in this growing market. The analysts at Steno Research believe that institutional adoption, a favorable regulatory environment, and the historically strong post-Bitcoin-halving performance will drive growth in the market.
Recommendations
Based on the projections presented by Steno Research, we recommend that investors consider the following:
- Invest in BTC and ETH: With both cryptocurrencies expected to crush all-time highs, investing in them could be a good starting point.
- Look into decentralized finance (DeFi) protocols: The total value locked (TVL) in DeFi protocols is forecasted to top $300 billion in 2025, making it an attractive investment opportunity.
- Consider investing in altcoins: With the ETH/BTC ratio expected to hit "at least 0.06" in 2025, investing in altcoins could be a good way to participate in this growing market.
Note: These recommendations are based on the projections presented by Steno Research and should not be considered investment advice.
