According to a recent research note from Steno Research, 2025 is expected to be a remarkable year for the cryptocurrency market, with both Bitcoin (BTC) and Ether (ETH) poised to crush all-time highs. The analysts at Steno are also increasingly optimistic about an imminent altcoin season.
Bullish BTC and ETH Price Projections
Steno Research predicts that BTC’s spot price will surpass $150,000, while ETH’s spot price is expected to reach over $8,000. These bullish projections are based on several factors, including:
- Unprecedentedly Favorable Regulatory Environment: The analysts believe that the current regulatory environment is favorable for cryptocurrencies, with a supportive macroeconomic climate marked by declining interest rates and improved liquidity.
- Historically Strong Post-Bitcoin-Halving Performance: Bitcoin has historically performed well in the aftermath of its halving events, which are expected to occur in 2025.
- Institutional Adoption: Steno expects institutional adoption to reach unparalleled levels in 2025, driven by significant inflows into U.S.-based Bitcoin and Ethereum ETFs.
Net Inflows into BTC and ETH ETFs
Steno Research predicts that BTC and ETH exchange-traded funds (ETFs) will see net inflows of $48 billion and $28.5 billion, respectively, in 2025.
Key Drivers Behind Steno’s Predictions
- Favorable Regulatory Environment: The analysts believe that the current regulatory environment is favorable for cryptocurrencies, with a supportive macroeconomic climate marked by declining interest rates and improved liquidity.
- Historically Strong Post-Bitcoin-Halving Performance: Bitcoin has historically performed well in the aftermath of its halving events, which are expected to occur in 2025.
- Institutional Adoption: Steno expects institutional adoption to reach unparalleled levels in 2025, driven by significant inflows into U.S.-based Bitcoin and Ethereum ETFs.
Ether Poised to Outperform Bitcoin
According to Steno Research, Ether is expected to perform especially well in 2025, significantly outperforming Bitcoin. The analysts predict that the ETH/BTC ratio will hit at least 0.06, nearly double its current level of around 0.035.
Why Ether is Expected to Outperform
- Donald Trump’s U.S. Presidential Victory: Steno believes that Donald Trump’s U.S. presidential victory is more favorable for altcoins than for Bitcoin.
- Encouragement of Onchain Activity: Trump’s presidency encourages more robust on-chain activity, which benefits altcoins such as Ethereum and Solana significantly.
Altcoin Season to Reach New Heights
Steno Research predicts that the total value locked (TVL) in decentralized applications will top $300 billion in 2025, far surpassing 2021’s highs of approximately $180 billion. The analysts also forecast that the TVL on DeFi protocols will hit $300 billion.
Key Factors Driving Steno’s Predictions
- Warming US Policy Environment: Grayscale cited the warming US policy environment as a key factor in its predictions.
- Industry-Friendly Leaders: Trump has promised to appoint industry-friendly leaders to key regulatory agencies, making the US "the world’s crypto capital."
- US Becoming a Global Leader in Crypto: Raj Brahmbhatt, CEO of Web3 settlement company Zeebu, is aggressively bullish on the US becoming a global leader in the space by the end of 2025.
Conclusion
Steno Research’s predictions suggest that 2025 will be a remarkable year for the cryptocurrency market. With BTC and ETH poised to crush all-time highs, and an imminent altcoin season expected to reach new heights, investors are advised to stay informed and adjust their strategies accordingly.
