The cryptocurrency market is expected to experience its best year ever in 2025, with Bitcoin (BTC) and Ethereum (ETH) projected to surpass all-time highs, according to a research note from Steno Research. The analysts are increasingly optimistic about an imminent altcoin season, citing an unprecedentedly favorable regulatory environment, supportive macroeconomic climate, and historically strong post-Bitcoin-halving performance.
BTC and ETH Price Projections
The bullish price projections for BTC and ETH reflect the following factors:
- Regulatory Environment: An increasingly favorable regulatory environment for cryptocurrencies, which is expected to continue in 2025.
- Macroeconomic Climate: A supportive macroeconomic climate marked by declining interest rates and improved liquidity.
- Historical Performance: Historically strong post-Bitcoin-halving performance, with BTC’s price often increasing significantly after the halving event.
Institutional Adoption
Steno expects institutional adoption to reach unparalleled levels in 2025, driven by significant inflows into U.S.-based Bitcoin and Ethereum exchange-traded funds (ETFs). The analysts predict that BTC and ETH ETFs will see net inflows of $48 billion and $28.5 billion, respectively.
Altcoin Season
Ether is poised to perform especially well in 2025, significantly outperforming Bitcoin, according to Steno’s research note. In 2025, the ETH/BTC ratio is expected to hit at least 0.06, nearly double its current level of around 0.035. This will usher in a broader alternative cryptocurrency — or ‘altcoin’ — season in 2025.
Impact on Bitcoin Dominance
Bitcoin dominance measures BTC’s percentage of crypto’s total market capitalization. Steno predicts that Bitcoin dominance will drop from its current levels of nearly 57% to around 45%. This decrease in dominance is partly based on the argument that Donald Trump’s U.S. presidential victory is more favorable for altcoins than for Bitcoin.
Onchain Activity and Altcoin Performance
Steno argues that Trump’s presidency encourages more robust onchain activity, which benefits altcoins such as Ethereum and Solana significantly. This increased onchain activity will drive the price of altcoins upwards, contributing to a broader altcoin season in 2025.
Decentralized Finance (DeFi) Growth
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 will be driven by the increasing adoption of DeFi protocols and the expansion of decentralized finance.
Trump Pump
Others, including asset manager Grayscale, are similarly optimistic about the cryptocurrency market’s prospects in 2025. 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.
Industry Perspective
Raj Brahmbhatt, CEO of Web3 settlement company Zeebu, is aggressively bullish on the US becoming a global leader in the cryptocurrency space by the end of the year. He cites Trump’s promise to appoint industry-friendly leaders to key regulatory agencies and make the US ‘the world’s crypto capital’ as a key factor driving his optimism.
Conclusion
The cryptocurrency market is expected to experience its best year ever in 2025, with BTC and ETH projected to surpass all-time highs. The analysts are increasingly optimistic about an imminent altcoin season, citing an unprecedentedly favorable regulatory environment, supportive macroeconomic climate, and historically strong post-Bitcoin-halving performance.
References
- Steno Research: Research note on the cryptocurrency market’s prospects in 2025
- Grayscale: List of top 20 tokens to watch in Q1 2025
- Zeebu: Interview with Raj Brahmbhatt, CEO of Web3 settlement company