According to a research note from Steno Research, 2025 is expected to be an extraordinary year for the cryptocurrency market, with both Bitcoin (BTC) and Ether (ETH) potentially reaching all-time highs. The analysts are "increasingly optimistic about an imminent altcoin season" and predict that BTC’s and ETH’s spot prices will surpass $150,000 and $8,000, respectively.
A Favorable Regulatory Environment
The bullish predictions from Steno Research reflect a favorable regulatory environment for cryptocurrencies, which is expected to continue in 2025. The analysts point out that declining interest rates and improved liquidity will also contribute to the growth of the market. Additionally, institutional adoption is expected to reach unprecedented levels, with significant inflows into U.S.-based Bitcoin and Ethereum exchange-traded funds (ETFs).
Institutional Adoption and ETF Inflows
Steno expects BTC and ETH ETFs to see net inflows in 2025 of $48 billion and $28.5 billion, respectively. This surge in institutional investment is expected to have a positive impact on the market.
A Strong Post-Halving Performance
Historically, Bitcoin’s price has increased significantly after halving events, which occur when the mining reward for validating transactions on the blockchain is cut in half. The next halving event is expected to take place in 2025, and Steno Research believes that it will contribute to a strong post-halving performance.
Historical Post-Halving Performance
| Halving Event | Price Increase |
| — | — |
| 2012 | 900% |
| 2016 | 3000% |
| 2021 | 500% |
A Promising Environment for Altcoins
Steno Research is also optimistic about the prospects of altcoins in 2025. 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 season, with Bitcoin dominance dropping from its current levels of nearly 57% to around 45%.
The Role of Donald Trump’s Presidency
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.
Trump’s Impact on the Crypto Market
- Trump’s appointment of industry-friendly leaders to key regulatory agencies will create a supportive environment for cryptocurrencies.
- His promise to make the U.S. "the world’s crypto capital" will attract investment and talent to the country.
- The warming US policy environment will contribute to a surge in on-chain activity, benefiting altcoins.
A Bullish Outlook for DeFi
The total value locked (TVL) in decentralized applications is expected to top $300 billion in 2025, far surpassing 2021’s highs of approximately $180 billion. This growth in DeFi will be driven by the increasing adoption of decentralized finance protocols.
The Rise of DeFi
| Year | TVL |
| — | — |
| 2020 | $10 billion |
| 2021 | $180 billion |
| 2025 (projected) | $300 billion |
A Global Leader in Cryptocurrency
Raj Brahmbhatt, CEO of Web3 settlement company Zeebu, is aggressively bullish on the US becoming a global leader in cryptocurrency by the end of 2025. The warming US policy environment and Trump’s presidency are expected to contribute to this growth.
Quotes from Industry Experts
- "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
- "The warming US policy environment is creating a supportive environment for cryptocurrencies. We expect significant growth in the market." – Steno Research
