In a recent report, crypto exchange-traded fund (ETF) issuer and asset manager Bitwise unveiled bold predictions for Bitcoin and the broader cryptocurrency market by 2025, highlighting the significant performance of major cryptocurrencies throughout this year.
Bitcoin reached an all-time high of $104,000 at the start of the month, marking a staggering increase of 141.72% year-to-date, driven largely by the historic launch of spot Bitcoin ETFs in the United States, which amassed $33.56 billion in assets.
Other cryptocurrencies also demonstrated impressive gains: Solana (SOL) rose by 127.71%, XRP skyrocketed by 285.23%, and Ethereum (ETH) increased by 75.77%.
Notably, crypto-related equities such as MicroStrategy and Coinbase also saw remarkable increases of 525.39% and 97.57%, respectively.
Beyond price hikes, Bitwise notes that the regulatory landscape for cryptocurrencies also improved significantly. In the 2024 US elections, crypto-friendly candidates triumphed, enhancing the industry’s prospects.
President-elect Donald Trump, who embraced cryptocurrencies in his campaign, pledged to establish a strategic Bitcoin reserve and reform the US Securities and Exchange Commission (SEC), have further contributed to the current uptrend.
Trump’s nomination of Scott Bessent as Treasury Secretary—who has previously described crypto as a vehicle for freedom—further signals a shift in the regulatory environment.
As Bitwise’s team looks ahead, they express enthusiasm about entering what they term the “Golden Age of Crypto.” Their predictions are grounded in several key factors, including rising institutional adoption, advancements in blockchain technology, and anticipated global stimulus from major central banks.
The report specifically projects that Bitcoin, Ethereum, and Solana—the “magnificent three”—will continue to outperform traditional asset classes.
In 2024, these cryptocurrencies significantly outpaced the S&P 500, which returned 28.07%, gold at 27.65%, and bonds at a meager 3.40%. Bitwise expects this momentum to carry into 2025, with all three assets setting new all-time highs.
The research notes the continuing demand for Bitcoin, which is being pushed by an injection of funds into Bitcoin ETFs, as well as the imminent supply reduction due to the April 2024 Halving.
This Halving event is intended to reduce new Bitcoin issuance, hence increasing scarcity. If the US government follows through on its proposal to establish a strategic reserve of one million Bitcoins, Bitwise predicts that Bitcoin’s price will skyrocket to $200,000 or perhaps $500,000.
Despite its strong performance in 2024, Ethereum has experienced hurdles as investors move their attention to Bitcoin and faster-growing blockchains. However, Bitwise predicts a narrative shift for Ethereum in 2025.
They believe that activity on Layer 2 (L2) solutions such as Base and Starknet will expand dramatically, as will inflows into spot Ethereum ETFs. The rise of stablecoins and tokenized projects on Ethereum is also expected to pique investors’ interest. The firm predicts a significant increase to a new all-time high of $7,000 for the market’s leading altcoin.
Solana, on the other hand, known for its quick rebound following the 2022 market meltdown, is also expected to perform well in 2025. The study attributed Solana’s 2024 spike to a memecoin frenzy, similar to the GameStop trading saga.
Looking ahead, Bitwise anticipates that projects will continue to migrate to the Solana network, expanding its ecosystem beyond memecoins. Bitwise anticipates a significant increase, almost tripling the current price record to a new high of $750 per SOL.
At the time of writing, Bitcoin is trading at $96,000, while Ethereum and Solana are consolidating around $3,662 and $218 respectively.
Featured image from DALL-E, chart from TradingView.com
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