Crypto Could See Its Best Year Ever in 2025 According to Steno Research
Introduction
The year 2025 is expected to be a remarkable year for the cryptocurrency market, with predictions of significant price increases for Bitcoin (BTC) and Ether (ETH). According to a research note by Steno Research, the analysts are increasingly optimistic about the imminent altcoin season and have made some remarkable positive developments. This article will delve into the predicted performance of BTC and ETH, as well as other notable trends in the cryptocurrency market.
BTC and ETH Price Projections
The researchers at Steno Research predict that BTC’s spot price will surpass $150,000 by 2025. Similarly, they expect ETH to reach an all-time high of $8,000. The analysts attribute these predictions to several factors, including:
- Unprecedentedly favorable regulatory environment for cryptocurrencies: The current regulatory landscape is seen as favorable for the growth and adoption of digital assets.
- Supportive macroeconomic climate: Declining interest rates and improved liquidity are expected to contribute to a bullish market sentiment.
- Historically strong post-Bitcoin-halving performance: Previous instances of Bitcoin halving have been followed by significant price increases.
Institutional Adoption
The researchers also expect institutional adoption to reach unprecedented levels in 2025. This is attributed to the growing popularity of cryptocurrency exchange-traded funds (ETFs). According to Steno Research, BTC and ETH ETFs are expected to see net inflows of $48 billion and $28.5 billion, respectively.
Altcoin Season
Ether is expected to perform exceptionally well in 2025, significantly outperforming Bitcoin. The analysts predict that the ETH/BTC ratio will hit at least 0.06 by the end of 2025. This will usher in a broader altcoin season, with Bitcoin dominance dropping from its current levels of nearly 57% to around 45%.
Donald Trump’s Impact on Crypto
Steno Research’s prediction is partly based on the argument that Donald Trump’s U.S. presidential victory is more favorable for altcoins than for Bitcoin. The analysts believe that Trump’s presidency will encourage more robust on-chain activity, which benefits altcoins such as Ethereum and Solana significantly.
Decentralized Finance (DeFi) Growth
The total value locked (TVL) in decentralized applications is expected to top $300 billion by 2025, far surpassing 2021’s highs of approximately $180 billion. This growth is attributed to the increasing popularity of DeFi protocols and the favorable regulatory environment.
Industry Expectations
Others, including asset manager Grayscale, are similarly optimistic about the future of cryptocurrency market. 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.
Industry Expectations
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." 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," Raj Brahmbhatt, CEO of Web3 settlement company Zeebu,told Cointelegraph in December.
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