Crypto Market in 2025: What Should You Expect?
2024 is coming to an end and is a relatively good year for the ecosystem. But what does the future hold for the cryptocurrency market in 2025?
This is a pressing question that investors may face. In this analysis, BeInCrypto discusses insights from leading analysts for the year ahead. While some predict the bull market will gain momentum, others urge caution. Here’s a breakdown of key signals from key forecasts and key indicators.
Analysts expect Bitcoin rally to continue, but first…
For Benjamin Cowen, cryptocurrency analyst and founder of IntoTheCryptoverse, Bitcoin (BTC) may start to see a correction in 2025. Cowen believes this could happen, as Bitcoin has shown similar behavior in January following halvings in previous years. He advised market participants to prepare mentally for a potential pullback.
“In the past two cycles, BTC has seen a correction in January after the halving. Perhaps it is worth mentally preparing for this outcome. So corresponding to January 2025.” Cowen Wrote on X.
However, the paper goes against some predictions that Bitcoin prices could rise to $120,000 in the first month. Currently, BTC is trading at $97,970. This year, the cryptocurrency hit an all-time high of $108,268, up 112% year-to-date (YTD).
Ki Young Ju, CEO of analytics platform CryptoQuant, believes that the Bitcoin bull market may continue until mid-2025. Young Ju made this assertion in July, noting BTC may attract new capital Extend the cryptocurrency market’s bull run into 2025.
However, come November. Xiao Zhu changed his mind. He said that if Bitcoin prices end 2024 on a strong note, it could set the stage for a bear market in 2025.
“I expect the revision to be Bitcoin Futures Market indicators are overheated, but we are entering the price discovery phase and the market is heating up further. If a correction occurs, the bull market may continue; however, a strong rebound at the end of the year may set the stage for a bear market in 2025. ” Yingzhu explain.
Recently, Axel Adler shared his thoughts on Bitcoin Price Temperature (BPT), which measures the distance between Bitcoin prices Current Bitcoin Price and its 4-year moving average.
Typically, Bitcoin reaches a cycle top when the BPT reading falls between 6 and 8. On December 7, Adler noted that the indicator was at 3.2. However, he mentioned that if the reading rises to 8, it could push the price of Bitcoin to $178,000.
“At a BPT level of 8, the price per BTC could reach $178,000. Essentially, this is a 2025 target that could be achieved if the current demand for the token in the spot market continues. “Alder mention.
Altcoins are no exception: Solana’s battle with Ethereum continues
However, Bitcoin is only one part of the crypto market. Therefore, it is important to keep an eye on other assets and the underlying macroeconomic view of what may happen to cryptocurrencies in 2025. At the same time, it is worth noting that apart from Bitcoin, only a few altcoins were able to reach new highs in the 2021 bull run.
Still, there are some positive signs. For example, BNB and Solana (Sol) climb new peaks while XRP price performs strongly in the last quarter. Some relatively new altcoins such as Sui (SUI), Mantra (OM) and Bitget Token (BGB) also had impressive performances.
However, this honor would be incomplete without mentioning memecoins, which have taken a strong position in the market during this cycle. For this reason, Expert predictions Meme coins, AI coins, and real world asset (RWA) tokens are likely to continue to perform well in 2025.
However, Ethereum (ETH) has been a bit of a disappointment. Therefore, digital asset management company 21Shares believes that Solana may continue to eat into Ethereum’s market share in 2025.
In its report, 21Shares attributed this prediction to the low fees offered by the Solana blockchain and the integration of PayPal USD (PYUSD) adoption Stablecoin. Furthermore, it emphasized that this does not mean that SOL will flip the market cap of ETH.
“While we don’t anticipate a full-blown ‘flip,’ Solana is well positioned to outperform and capture more market share from Ethereum through improved user experience and infrastructure.” The report point out.
Despite this, Ethereum’s total value locked (TVL) is still higher than Solana’s. As of this writing, Solana’s TVL is $8.6 billion, while Ethereum’s TVL is $70.1 billion.
If the predictions come true, TVL differences may shrink. about Solana ETF Application21Shares noted that approval could come within the first three quarters, but could also come late in 2025 or early next year.
“Solana’s expanding role within TradFi is expected to lay the foundation for traditional financial products such as Solana futures CME or US registered Solana ETF. While an ETF may not be approved in 2025, the likelihood is expected to increase as the end of the year and the first half of 2026 approach. “21 new shares were added.
The Trump Effect and What Adoption Might Look Like
From a macroeconomic perspective, asset managers expect Bitcoin ETF Will stimulate further institutional adoption globally. this Sentiment may have something to do with Donald Trump’s election As President of the United States.
During the campaign, Trump had promised that his administration would provide clearer regulations for the cryptocurrency industry. His inauguration is scheduled for January 2025, following the resignation of SEC Chairman Gary Gensler can allow the market Experience more freedom.
Outside the United States, South Korea is considering lifting its ban on crypto ETFs. If realized, this could push transaction volumes in Asia to extremely high levels. The UK has not been left out, with speculation that the country may allow retail investors to obtain cryptocurrency exchange-traded notes (ETNs).
All things considered, it seems likely that 2025 will bring more positive outcomes for the crypto market than this year. It’s also possible that another country could follow El Salvador’s footsteps and adopt Bitcoin as a strategic reserve asset.
As of this writing, countries with the potential to achieve this goal It’s the United States and Javier Mire’s Argentina. If this happens, then Bitcoin prices could hit new highs and the total market cap could soar to over $5 trillion.
The situation still looks dangerous for altcoins. However, if significant capital flows into these assets, they could also reach new highs. In the meantime, investors may want to remain vigilant. If the market experiences a crypto platform crash like in 2025, this prediction may become invalid and the market may fall into a bear market phase.
Disclaimer
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