A research note from Steno Research has predicted that 2025 will be a remarkable year for the cryptocurrency market. The analysts at Steno are optimistic about the future, citing several factors that will contribute to the growth of Bitcoin (BTC) and Ether (ETH). In this article, we’ll explore the predictions made by Steno Research and what they mean for the cryptocurrency market.
A Record-Breaking Year for BTC and ETH
Steno Research predicts that both BTC and ETH’s spot prices will surpass all-time highs in 2025. The analysts are forecasting that BTC will reach $150,000 and ETH will reach $8,000. These predictions reflect a favorable regulatory environment, a supportive macroeconomic climate, and the historically strong post-Bitcoin-halving performance.
Unprecedented Favorable Regulatory Environment
The report highlights the unprecedentedly favorable regulatory environment for cryptocurrencies in 2025. This is partly due to the changing landscape of government policies towards cryptocurrencies. In particular, Steno Research notes that Donald Trump’s presidency will be more favorable for altcoins than for Bitcoin.
Steno’s Explanation
According to Steno Research, the argument that Trump’s U.S. presidential victory is more favorable for altcoins than for Bitcoin is partly based on the fact that his presidency encourages more robust on-chain activity, which benefits altcoins such as Ethereum and Solana significantly.
Supportive Macroeconomic Climate
The report also mentions a supportive macroeconomic climate marked by declining interest rates and improved liquidity. This environment will contribute to the growth of cryptocurrencies in 2025.
Institutional Adoption
Steno Research expects institutional adoption to reach unparalleled levels in 2025, further bolstered by significant inflows into U.S.-based Bitcoin and Ethereum ETFs. The analysts predict that BTC and ETH exchange-traded funds (ETFs) will see net inflows of $48 billion and $28.5 billion, respectively.
Altcoin Season on the Horizon
Steno expects Ether to perform especially well in 2025, significantly outperforming Bitcoin. In 2025, Steno predicts that the ETH/BTC ratio will hit at least 0.06. This is nearly double the current level of around 0.035, according to TradingView.
Impact on Bitcoin Dominance
The increased performance of Ether in 2025 will usher in a broader alternative cryptocurrency — or ‘altcoin’ — season in 2025. According to the report, Bitcoin dominance will drop from its current levels of nearly 57% to around 45%. This is because the ETH/BTC ratio will increase, indicating that Ether’s value relative to Bitcoin will grow.
Record-Breaking DeFi Growth
The total value locked (TVL) in decentralized applications is forecasted to hit $300 billion in 2025. This is far surpassing 2021’s highs of approximately $180 billion. The growth of decentralized finance (DeFi) protocols and the increasing adoption of these platforms will contribute to this record-breaking growth.
Trump’s Impact on DeFi
The report mentions that Donald Trump’s presidency will be more favorable for DeFi applications, which will benefit from increased on-chain activity. This is reflected in the growth of TVL in decentralized applications, which is expected to reach $300 billion in 2025.
Grayscale’s Prediction
Others, including asset manager Grayscale, are similarly optimistic about the future of cryptocurrencies. In December, Grayscale added several DeFi applications, including two on Solana, to its list of the top 20 tokens to watch in the first quarter of 2025. The company cited the warming US policy environment as a key factor.
Warming US Policy Environment
Grayscale’s prediction is based on the warming US policy environment, which is expected to benefit cryptocurrencies. In particular, Trump has promised to appoint industry-friendly leaders to key regulatory agencies and make the US ‘the world’s crypto capital.’
Bullish Outlook for 2025
The predictions made by Steno Research reflect a bullish outlook for the cryptocurrency market in 2025. The analysts are optimistic about the future, citing several factors that will contribute to the growth of Bitcoin and Ether.
Record-Breaking Growth
The record-breaking growth predicted by Steno Research is not limited to BTC and ETH. The total value locked (TVL) in decentralized applications is expected to hit $300 billion in 2025, far surpassing 2021’s highs of approximately $180 billion.
Conclusion
In conclusion, the predictions made by Steno Research reflect a bullish outlook for the cryptocurrency market in 2025. The analysts are optimistic about the future, citing several factors that will contribute to the growth of Bitcoin and Ether. With a record-breaking year predicted for both cryptocurrencies, it’s essential to stay informed and adapt your investment strategies accordingly.
Sources:
- Steno Research
- TradingView
- Grayscale
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