Steno Research released a report predicting that 2025 will be a historic year for the cryptocurrency market. The focus is on Bitcoin and Ethereum, with record-breaking price projections driven by a combination of favorable regulatory changes, improving macroeconomic conditions, and growing institutional adoption.
BTC and ETH: Record-Breaking Price Predictions
The report projects Bitcoin's price to exceed $150,000 and Ethereum's to surpass $8,000 by 2025. These price targets are based on several interlinked factors. Governments and regulators are expected to adopt a more favorable stance on cryptocurrencies, encouraging investment. Post-halving momentum is anticipated to drive Bitcoin's price significantly higher. Additionally, declining interest rates and improved liquidity conditions are seen as creating a supportive environment for crypto assets. Ethereum is projected to outperform Bitcoin, with the ETH/BTC ratio expected to rise to 0.06 from its current level of 0.035, reflecting Ethereum's expanding role in decentralized applications and the broader blockchain ecosystem.
Institutional Adoption: A Tipping Point
Steno Research forecasts a surge in institutional capital inflows, particularly through U.S.-based Bitcoin and Ethereum exchange-traded funds (ETFs). Net inflows for BTC ETFs are expected to reach $48 billion, while ETH ETFs could see inflows of $28.5 billion by 2025. The growing appeal of ETFs underscores institutions' increasing confidence in crypto as an asset class. Steno analysts believe this trend will further cement Bitcoin and Ethereum's dominance in the market.
DApps and Altcoins: The Rise of a New Era
The report also highlights the importance of decentralized applications and alternative cryptocurrencies. Total value locked (TVL) in DApps is forecast to reach $300 billion by 2025, a significant leap from the $180 billion peak in 2021. Key drivers for this growth include enhanced on-chain activity, and Bitcoin's market dominance is predicted to drop from 57% to 45%, paving the way for altcoins to gain prominence. Steno attributes part of this shift to potential political developments, such as Donald Trump's U.S. presidential victory. Analysts argue that Trump's policies could spur on-chain activity, favoring Ethereum and Solana over Bitcoin.
Steno Research's report presents an optimistic view of the cryptocurrency market's future, highlighting various factors that could drive significant price growth for key crypto-assets like Bitcoin and Ethereum. It also heralds a new era for altcoins and decentralized applications, signaling dynamic changes in the coming years.
