According to a research note by Steno Research, the cryptocurrency market is expected to experience its best year ever in 2025. The analysts predict that Bitcoin (BTC) and Ether (ETH) will crush all-time highs, with BTC’s spot price surpassing $150,000 and ETH’s spot price reaching $8,000.
Favorable Regulatory Environment and Macro Economic Climate
The bullish predictions by Steno Research are based on an unprecedentedly favorable regulatory environment for cryptocurrencies. The analysts point to declining interest rates, improved liquidity, and a historically strong post-Bitcoin-halving performance as key factors contributing to the market’s growth.
Institutional Adoption and ETF Inflows
Steno expects institutional adoption to reach unparalleled levels in 2025, driven by significant inflows into U.S.-based Bitcoin and Ethereum Exchange-Traded Funds (ETFs). The analysts predict that BTC and ETH ETFs will see net inflows of $48 billion and $28.5 billion, respectively.
Altcoin Season: Ether Poised for Significant Growth
Ether is expected to perform especially well in 2025, significantly outperforming Bitcoin. Steno expects the ETH/BTC ratio to hit at least 0.06, nearly double the current level of around 0.035. This will usher in a broader alternative cryptocurrency (altcoin) season in 2025.
Bitcoin Dominance 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. The analysts believe that Trump’s presidency encourages more robust on-chain activity, which benefits altcoins such as Ethereum and Solana significantly.
Total Value Locked (TVL) in Decentralized Applications
The total value locked (TVL) in decentralized applications (dApps) is expected to top $300 billion in 2025, far surpassing 2021’s highs of approximately $180 billion. This will be driven by the growing adoption of DeFi protocols and increasing investor interest in cryptocurrency.
Donald Trump’s Impact on Cryptocurrency Market
Trump’s victory has already had a positive impact on the cryptocurrency market. Asset manager Grayscale added several decentralized finance (DeFi) applications, including two on Solana, to its list of top 20 tokens to watch in the first quarter of 2025.
Grayscale and Web3 Settlement Company Zeebu’s Views
Grayscale cited the warming US policy environment as a key factor contributing to their optimism. Raj Brahmbhatt, CEO of Web3 settlement company Zeebu, is also aggressively bullish on the US becoming a global leader in the space by the end of the year.
Market Outlook and Investment Opportunities
The cryptocurrency market’s growth in 2025 will present numerous investment opportunities for investors. With increasing institutional adoption, declining interest rates, and improving liquidity, the market is poised for significant gains. Investors should keep an eye on developments in the US regulatory environment and DeFi protocols.
Conclusion
Steno Research’s predictions for the cryptocurrency market in 2025 are based on a favorable regulatory environment, macroeconomic climate, and institutional adoption. With Ether poised to outperform Bitcoin and the total value locked (TVL) in decentralized applications expected to top $300 billion, investors should be optimistic about the market’s growth.
Recommendations
- Investors should consider investing in BTC and ETH ETFs, which are expected to see significant inflows in 2025.
- DeFi protocols such as Ethereum and Solana are expected to benefit from increasing investor interest and adoption.
- The US regulatory environment is expected to become more favorable for cryptocurrencies, presenting opportunities for investors.
References
Source: Steno Research
Related: Grayscale adds AI launchpads, Solana DeFi apps to Q1 2025 top tokens
