Analysts from Steno Research predict that Bitcoin, the world’s leading cryptocurrency, will skyrocket past $150,000 in 2025. Ethereum, the second-largest cryptocurrency, is also expected to exceed $8,000.
This bullish outlook is driven by several factors, including a favorable regulatory environment, declining interest rates, and increased liquidity.
Favorable Regulatory Environment and Macroeconomic Climate
According to Steno Research, the unprecedentedly favorable regulatory environment for cryptocurrencies is a substantial driver of this anticipated growth. “We expect the mainstream inclusion of crypto into portfolios en masse – which began in 2024 – will accelerate in 2025,” said Mark Greenberg, Kraken’s Global Head of Asset Management.
The supportive macroeconomic climate, marked by declining interest rates and improved liquidity, is also expected to contribute to the surge in cryptocurrency prices1.
Institutional and Retail Adoption on the Rise
The analysts also highlight the growing adoption of cryptocurrencies by both institutional and retail investors. Bitcoin exchange-traded funds (ETFs) are expected to pull in net inflows of $48 billion in 2025, while Ethereum ETFs are forecast to bring in $28.5 billion.
“In 2025, investors will begin to lean into strategies like dollar-cost averaging (DCA) to start small, and steadily increase their holdings,” Greenberg added.
Ethereum’s Performance Relative to Bitcoin
Ethereum’s performance relative to Bitcoin, measured through its ETH/BTC ratio, is also forecast to jump to 0.06.
This indicates that Ethereum is predicted to grow faster than Bitcoin in 2025. The BBC reported that Ethereum’s strong performance is attributed to its dominance in the DeFi market and its role as a store of value.
Altcoins Expected to Surge
Beyond Bitcoin and Ethereum, altcoins are expected to see a major surge in prices. Steno Research analysts claim to be “increasingly optimistic about an imminent altcoin season”.
This optimism is shared by other industry experts who predict significant growth in the altcoin market.
A Promising Future for Cryptocurrencies
As we look ahead to 2025, the future of cryptocurrencies appears promising. With favorable regulatory environments, increased institutional and retail adoption, and strong performance from leading cryptocurrencies like Bitcoin and Ethereum, the market is poised for significant growth.
What are your thoughts on the future of cryptocurrencies? Do you believe these predictions will come true?
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