In a research note, Steno Research has made a bold prediction that 2025 will be the best year ever for the cryptocurrency market. With Bitcoin (BTC) and Ether (ETH) expected to crush all-time highs, among other remarkable positive developments, investors are advised to keep a close eye on the market.
BTC and ETH Price Projections
According to Steno Research, BTC’s and ETH’s spot prices will surpass $150,000 and $8,000, respectively. This bullish forecast reflects 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.
Institutional Adoption and ETFs
The analysts are also increasingly optimistic about an imminent altcoin season, which is expected to be fueled by significant inflows into U.S.-based Bitcoin and Ethereum exchange-traded funds (ETFs). Steno expects BTC and ETH ETFs to see net inflows in 2025 of $48 billion and $28.5 billion, respectively.
Altcoin Season and ETH’s Strong Performance
Ether is poised to perform especially well in 2025, significantly outperforming Bitcoin, Steno said. In 2025, Steno expects the ETH/BTC ratio to hit ‘at least 0.06’. This will usher in a broader alternative cryptocurrency — or ‘altcoin’ — season in 2025, with Bitcoin dominance dropping from its current levels of nearly 57% to around 45%, according to the report.
Total Value Locked (TVL) in Decentralized Applications
The total value locked (TVL) in decentralized applications is forecasted to hit $300 billion in 2025, far surpassing 2021’s highs of approximately $180 billion. This surge in TVL is expected to be driven by the increasing adoption of decentralized finance (DeFi) protocols.
Trump Pump and Altcoin Season
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 encourages more robust on-chain activity, which benefits altcoins such as Ethereum and Solana significantly.
Grayscale’s Optimism
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.
Regulatory Environment and Institutional Adoption
The analysts’ optimism is also fueled by the increasingly favorable regulatory environment for cryptocurrencies. With Trump’s promise to appoint industry-friendly leaders to key regulatory agencies, the US is expected to become a global leader in the space by the end of the year.
Market Outlook 2025
In conclusion, Steno Research’s research note provides a comprehensive overview of the cryptocurrency market’s potential developments in 2025. With BTC and ETH expected to crush all-time highs, altcoin season on the horizon, and institutional adoption reaching unparalleled levels, investors are advised to keep a close eye on the market.
Key Takeaways
- BTC and ETH price projections: $150,000 and $8,000, respectively
- Altcoin season expected to be fueled by significant inflows into U.S.-based Bitcoin and Ethereum ETFs
- Total value locked (TVL) in decentralized applications forecasted to hit $300 billion in 2025
- Trump’s presidency encourages more robust on-chain activity, benefiting altcoins such as Ethereum and Solana significantly
- Grayscale’s optimism driven by the warming US policy environment
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