Steno Research has issued a research note predicting that the cryptocurrency market will experience its best year ever in 2025. The analysts at Steno are optimistic about the prospects of Bitcoin (BTC) and Ethereum (ETH), which they believe will surpass all-time highs, along with other potential "remarkable positive developments."
BTC and ETH Price Projections
According to the research note, Steno expects the spot prices of BTC and ETH to reach $150,000 and $8,000, respectively. The analysts are also increasingly optimistic about an imminent altcoin season, which they believe will be driven by a favorable regulatory environment, a supportive macroeconomic climate, and the historically strong post-Bitcoin-halving performance.
The bullish price projections for BTC and ETH reflect several key factors, including:
- Unprecedentedly Favorable Regulatory Environment: Steno expects the regulatory environment to continue to improve in 2025, with governments around the world taking a more favorable stance towards cryptocurrencies.
- Supportive Macroeconomic Climate: The analysts believe that declining interest rates and improved liquidity will create a supportive climate for the cryptocurrency market.
- Historically Strong Post-Bitcoin-Halving Performance: Bitcoin has historically experienced significant price increases after halving events, which Steno expects to continue in 2025.
Institutional Adoption and ETFs
Steno also expects institutional adoption of cryptocurrencies to reach unprecedented levels in 2025. The analysts believe that significant inflows into U.S.-based Bitcoin and Ethereum exchange-traded funds (ETFs) will drive this growth. According to the report, Steno expects BTC and ETH ETFs to see net inflows of $48 billion and $28.5 billion, respectively.
Altcoin Season
Ether is expected to perform especially well in 2025, significantly outperforming Bitcoin, according to Steno. The analysts believe that the ETH/BTC ratio will hit at least 0.06, which is nearly double the current level of around 0.035. This will usher in a broader alternative cryptocurrency — or "altcoin" — season in 2025.
Bitcoin Dominance
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.
Decentralized Applications (DeFi)
The total value locked in decentralized applications is expected to top $300 billion in 2025, far surpassing 2021’s highs of approximately $180 billion. This growth will be driven by increasing adoption of DeFi protocols and the growing popularity of decentralized finance (DeFi).
Conclusion
In conclusion, Steno Research’s research note provides a bullish outlook for the cryptocurrency market in 2025. The analysts expect BTC and ETH prices to reach all-time highs, along with other potential "remarkable positive developments." While there are risks associated with investing in cryptocurrencies, the growth of institutional adoption and DeFi protocols makes this an exciting time for investors.
Sources
- Steno Research: Steno Research is a leading research firm that provides insights on the cryptocurrency market.
- TradingView: TradingView is a popular platform for traders and investors to analyze and discuss financial markets.
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