The cryptocurrency market has been experiencing momentum since the beginning of the year, with a 4.21% rise in total market capitalization to $3.41 trillion. Trading volumes have also seen a significant increase of 18.20%, reaching $114.86 billion.
Bull Cycle and the "Trump Effect"
Steno Research suggests that this is the beginning of a wider bull cycle, with multiple tokens predicted to reach record highs. Key assets such as Bitcoin (BTC) and Ethereum (ETH) are expected to enter crucial price discovery phases. The upcoming inauguration of Donald Trump, known for his pro-cryptocurrency stance, coupled with a supportive economic climate, could potentially boost the market rally. The "Trump effect" was already observed in November 2024 when Bitcoin reached a new all-time high of $108,000 after his election victory.
Anticipated Market Surge
The potential establishment of a Bitcoin Reserve could further stimulate the anticipated market surge. Steno Research attributes the expected rally to several factors, particularly benefiting Bitcoin and Ethereum. The report mentions 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. Steno also predicts the U.S.-based Bitcoin and Ethereum exchange-traded funds (ETFs) reaching new milestones, with BTC and ETH ETFs projected to reach $48 billion and $28.5 billion, respectively, in assets under management.
Significant Gains for BTC, ETH, and Altcoins
Furthermore, Steno Research suggests that Bitcoin and Ethereum could see significant gains, with BTC potentially reaching an all-time high of $150,000 and ETH climbing to $8,000. These predictions are linked to the factors outlined above. The report also indicates an upcoming altcoin rally, driven by a rising ETH/BTC ratio and a decline in Bitcoin’s dominance. A higher ETH/BTC ratio signifies increasing ETH value and has traditionally been followed by altcoin surges.
Steno Research's expectations include further growth of the decentralized finance (DeFi) sector, with the Total Value Locked (TVL) across decentralized protocols expected to reach $300 billion, suggesting a massive influx of liquidity and growing confidence in the sector’s long-term prospects. Market optimism is already visible, with an increase in Stablecoin Exchange Reserves; for instance, by December 31, 2024, Binance's stablecoin reserves had risen to $44.5 billion, indicating a substantial liquidity pool ready to support asset purchases.
