According to Steno Research’s recent report, the cryptocurrency market is poised for significant growth in 2025, with Bitcoin (BTC) and Ether (ETH) expected to crush all-time highs. The analysts predict that BTC’s spot price will surpass $150,000, while ETH’s spot price is anticipated to exceed $8,000.
Favorable Regulatory Environment and Macroeconomic Climate
The bullish predictions 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. The report emphasizes that institutional adoption is expected to reach unparalleled levels, further bolstered by significant inflows into U.S.-based Bitcoin and Ethereum Exchange-Traded Funds (ETFs).
Institutional Adoption and 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 influx of institutional capital is expected to drive the growth of the cryptocurrency market.
Alternative Cryptocurrency Season
Ether is poised to perform especially well in 2025, significantly outperforming Bitcoin. Steno expects the ETH/BTC ratio to hit "at least 0.06" in 2025, nearly double the current level of around 0.035. 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%.
Total Value Locked (TVL) in Decentralized Applications
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 significant increase in TVL will be driven by the growth of DeFi protocols and the increasing adoption of cryptocurrencies.
Trump Pump and Warming US Policy Environment
The 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," according to Steno.
Others, including asset manager Grayscale, are similarly optimistic about the cryptocurrency market in 2025. 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." In an interview with Cointelegraph, Raj Brahmbhatt, CEO of Web3 settlement company Zeebu, stated: "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."
Bitcoin Payments and Centralized Stablecoins
The growth of the cryptocurrency market will also be driven by the increasing adoption of cryptocurrencies as a form of payment. However, this growth may be undermined by centralized stablecoins, which are being used increasingly for everyday transactions.
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