2024 is almost over and it has been a relatively good year for the ecosystem. But what lies ahead for the crypto market in 2025?
This is a pressing question that investors might be asking themselves. In this analysis, BeInCrypto discusses ideas from renowned analysts about the year ahead. While some predict the bull market will gain momentum, others urge caution. Here is a breakdown of the main predictions and key signals from critical indicators.
Analysts expect the Bitcoin rally to persist, but first…
For Benjamin Cowen, crypto analyst and founder of IntoTheCryptoverse, Bitcoin (BTC), in particular, could start 2025 with a correction. Cowen suggests this could be happening because, in January, following the previous halving years, Bitcoin showed similar behavior. He advises market participants to mentally prepare for a possible downturn.
“In the last two cycles, BTC suffered a correction in January of the year following the halving. It’s probably worth mentally preparing for this outcome. This would correspond to January 2025.” Cowen wrote on X.
This thesis, however, contradicts several opinions predicting that the price of Bitcoin could rise towards $120,000 in the first month. Currently, BTC is trading at $97,970. This year, the cryptocurrency hit a new all-time high of $108,268, representing a 112% year-to-date increase.
Ki Young Ju, CEO of analytical platform CryptoQuant, estimated that the Bitcoin bull market could last until mid-2025. Young Ju made this claim in July, pointing out that BTC could attract new capital to extend the 2025 crypto bull market into this period.
However, in November. Young Ju changed his feeling. According to him, if the price of Bitcoin ends 2024 on a good note, it could pave the way for a bear market in 2025.
“I expected corrections due to BTC futures market indicators overheating, but we are entering price discovery and the market is heating up even more. If a correction and consolidation occurs, the uptrend could continue; However, a strong recovery at the end of the year could prepare for a bear market in 2025. » Said the young Ju.
Recently, Axel Adler shared his views on Bitcoin Price Temperature (BPT), which measures the distance between the current Bitcoin price and its 4-year moving average.
Typically, Bitcoin reaches the top of the cycle when the BPT reading is between 6 and 8. On December 7, Adler noted that the indicator was at 3.2. However, he mentioned that if the figure reaches 8, it could push the Bitcoin price to $178,000.
“At a BPT level of 8, the price could reach $178,000 per BTC. This is essentially a 2025 target, which could come to fruition if current demand for coins in the spot market persists. » Alder mentioned.
Altcoins are not left out: the Solana versus Ethereum rivalry will continue
However, Bitcoin represents only part of the crypto market. Therefore, it is important to look at other assets and the potential macroeconomic vision that could happen for crypto in 2025. At the same time, it is important to note that besides Bitcoin, only a few altcoins in the bull market of 2021 were able to reach new heights.
There were, however, some positive signs. For example, BNB and Solana (SOL) have reached new highs, while the price of XRP has shown strong performance this past quarter. Some relatively new altcoins, such as Sui (SUI), Mantra (OM), and Bitget Token (BGB), also performed impressively.
This distinction, however, would be incomplete without mentioning meme coins, which have had a strong hold on the market during this cycle. For this reason, experts predict that meme coins, AI coins, and Real World Assets (RWA) tokens could continue to perform well in 2025.
Ethereum (ETH) has been a bit of a disappointment, however. As a result, digital asset management firm 21Shares estimated that Solana could continue to eat into Ethereum’s market share in 2025.
In its report, 21Shares attributed this prediction to the low fees provided on the Solana blockchain and the integration of the adoption of the PayPal USD (PYUSD) stablecoin. Additionally, he emphasized that this does not imply that SOL would reverse the market cap of ETH.
“While we do not anticipate a complete “turnaround,” Solana is poised to outperform and capture more Ethereum market share through improved user experience and infrastructure.” The report states.
Despite this, Ethereum’s total value locked (TVL) remains higher than that of Solana. As of this writing, Solana’s TVL stands at $8.60 billion, while Ethereum’s is $70.10 billion.
If the prediction comes true, the TVL difference could narrow. Regarding the Solana ETF application, 21Shares noted that approval could come within the first three quarters, but it could come at the end of 2025 or early the following year.
“Solana’s growing role in TradFi is expected to pave the way for traditional financial products such as Solana CME Futures or US-domiciled Solana ETFs. Although ETF approval may not occur in 2025, the likelihood is expected to increase as we approach the end of the year and the first half of 2026. » 21 shares added.
The Trump Effect and What Adoption Could Look Like
From a macroeconomic perspective, the asset manager anticipates that the approval of Bitcoin ETFs will spur greater institutional adoption globally. This feeling could be linked to the election of Donald Trump as President of the United States.
During his campaign, Trump consistently promised that his administration would provide clearer regulations for the crypto industry. His inauguration is scheduled for January 2025 and the resignation of SEC Chairman Gary Gensler could allow the market to benefit from more freedom.
Outside of the United States, South Korea is considering lifting its ban on crypto ETFs. If this is achieved, it could bring the trading volume to an extremely high value in the Asian region. The UK is also not far behind, with speculation that the country could grant retail investors access to exchange-traded cryptocurrencies (ETNs).
Based on the above, it appears that the crypto market in 2025 could deliver more positive results than what happened this year. It is also possible that another country could adopt Bitcoin as a strategic reserve asset, following in the footsteps of El Salvador.
As of this writing, the countries with the potential to achieve this are the United States and Argentina led by Javier Milei. If this happens, the price of Bitcoin will likely reach new highs and the total market capitalization could exceed $5 trillion.
For altcoins, this situation still seems risky. However, if a high level of capital flows into these assets, they could also appear to reach a new high. At the same time, investors may need to exercise caution. If the market were to experience a crash of crypto platforms like in 2025, this prediction could be invalidated and the market could fall into a bearish phase.
Disclaimer
In accordance with Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to providing accurate and unbiased reporting, but market conditions are subject to change without notice. Always do your own research and consult a professional before making any financial decision. Please note that our Terms and Conditions, Privacy Policy and Disclaimer have been updated.
