In a recent research note, Steno Research predicted that 2025 will be the best year ever for the cryptocurrency market. With Bitcoin (BTC) and Ether (ETH) expected to crush all-time highs, several "remarkable positive developments" are anticipated.
Record-Breaking Prices for BTC and ETH
Steno Research is forecasting that both BTC’s and ETH’s spot prices will surpass $150,000 and $8,000, respectively. This optimistic outlook is based on a favorable regulatory environment, a supportive macroeconomic climate, and the historically strong post-halving performance of Bitcoin.
Unprecedented Regulatory Environment
The analysts at Steno Research are increasingly optimistic about an imminent altcoin season. According to the December research note, the bullish BTC and ETH price projections reflect:
- An unprecedentedly favorable regulatory environment for cryptocurrencies
- A supportive macroeconomic climate marked by declining interest rates and improved liquidity
- The historically strong post-Bitcoin-halving performance
Institutional Adoption at Unparalleled Levels
Institutional adoption is expected to reach unparalleled levels, further bolstered by significant inflows into U.S.-based Bitcoin and Ethereum ETFs. Steno expects BTC and ETH exchange-traded funds (ETFs) to see net inflows in 2025 of $48 billion and $28.5 billion, respectively.
ETH Poised for Exceptional Growth
Ether is poised to perform especially well in 2025, significantly outperforming Bitcoin, Steno said. In 2025, Steno expects the ETH/BTC ratio to hit ‘at least 0.06’. That is nearly double the current level of around 0.035, according to TradingView.
A Broader Altcoin Season
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%, according to the report. Bitcoin dominance measures BTC’s percentage of crypto’s total market capitalization.
Steno’s Prediction: Partly Based on Trump’s Victory
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.’ Trump’s presidency ‘encourages more robust onchain activity, which benefits altcoins such as Ethereum and Solana significantly,’ Steno said.
TVL in DeFi Protocols to Reach New Heights
Expect the total value locked (TVL) in decentralized applications to top $300 billion in 2025, far surpassing 2021’s highs of approximately $180 billion, according to the report. The total value locked on DeFi protocols is forecasted to hit $300 billion.
Trump Pump
Others, including asset manager Grayscale, are similarly optimistic. 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’s Promise: A Global Leader in Crypto
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.’
Experts Weigh In on the Potential of the US Market
"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," Raj Brahmbhatt, CEO of Web3 settlement company Zeebu, told Cointelegraph in December.
A Year of Unprecedented Growth?
While it remains to be seen whether Steno’s predictions will come true, one thing is certain: 2025 has the potential to be a year of unprecedented growth for cryptocurrencies. With BTC and ETH expected to crush all-time highs, several "remarkable positive developments" are anticipated.
