BlockByBlock
Introduction
Expect 2025 to be the cryptocurrency market’s best year ever, with Bitcoin (BTC) and Ethereum (ETH) both set to crush all-time highs. Steno Research has issued a research note predicting significant price increases for these cryptocurrencies, along with an optimistic outlook for altcoins.
Bitcoin and Ethereum Price Projections
Steno Research predicts that BTC’s spot price will surpass $150,000, while ETH’s spot price is expected to reach $8,000. These forecasts are grounded in a "remarkably favorable regulatory environment," a supportive macroeconomic climate marked by declining interest rates and improved liquidity, as well as the strong post-Bitcoin-halving performance.
Institutional Adoption and ETF Inflows
institutional adoption is anticipated to reach unparalleled levels in 2025, further supported by significant inflows into U.S.-based Bitcoin and Ethereum exchange-traded funds (ETFs). Steno Research estimates that these ETFs will attract net inflows of $48 billion for BTC and $28.5 billion for ETH.
Altcoin Season Expectations
Ether (ETH) is poised to perform exceptionally well in 2025, significantly outperforming Bitcoin (BTC). Steno Research anticipates the ETH/BTC ratio to reach at least 0.06 by the end of the year, compared to its current level of approximately 0.035.
Total Value Locked (TVL) Projection
The total value locked (TVL) in decentralized applications is forecasted to top $300 billion in 2025, surpassing the 2021 highs of approximately $180 billion.
The Role of U.S. Presidential Elections
Steno Research attributes its optimistic outlook for altcoins and the cryptocurrency market to the perceived benefits of a favorable U.S. presidential election environment under Donald Trump’s presidency. Trump’s victory is seen as encouraging more robust on-chain activity, which benefits altcoins like Ethereum and Solana significantly.
Key Drivers of Market Performance
The total value locked (TVL) in decentralized applications is forecasted to top $300 billion in 2025, surpassing the 2021 highs of approximately $180 billion. This projection underscores the growing importance of DeFi protocols and their impact on the broader cryptocurrency ecosystem.
Institutional Adoption and Market Expansion
institutional adoption is a critical driver of market growth, with significant inflows expected into Bitcoin and Ethereum ETFs in 2025. This trend is further supported by the increasing recognition of cryptocurrencies as part of institutional investment strategies.
The Future of Cryptocurrency Regulation
A favorable regulatory environment is seen as a key factor in driving market performance, with Steno Research highlighting the positive impact of reduced capital requirements for crypto-friendly businesses and enhanced consumer protections.
Altcoins on the Rise
Altcoins such as Solana are poised to benefit from factors like high transaction volumes, low fees, and scalability improvements. These features make them attractive alternatives to Bitcoin in various use cases.
Conclusion
Steno Research’s 2025 outlook underscores the potential for significant growth across multiple cryptocurrencies, driven by favorable market conditions, institutional adoption, and technological advancements.
