On Tuesday, prominent crypto analyst Miles Deutscher shared his annual predictions for the cryptocurrency market on X. Here’s what Deutscher expects to see in 2025:
Bitcoin Dominance Has PeakedDeutscher predicts Bitcoin’s dominance in the market has already reached its cycle high of 61.5%. While he anticipates some periods of outperformance for Bitcoin, he believes the dominance level will not surpass this threshold.
Altcoins to Rally in the Second HalfDeutscher forecasts that significant gains in the altcoin market will likely occur during the second half of 2025. While macroeconomic conditions and recent price action have delayed the cycle, he acknowledges the possibility of two altcoin rallies this year, given historical seasonality trends.
ETH/BTC Reversal ExpectedDeutscher remains confident that Ethereum will reverse its current trend against Bitcoin. Despite being incorrect with this prediction in previous years, he reiterates his belief that this shift is inevitable.
Bitcoin to Hit $140,000While some analysts have projected Bitcoin surpassing $200,000 in 2025, Deutscher considers this overly optimistic. He instead predicts Bitcoin will reach $140,000 this year, aligning with his long-term view of the asset as eventually achieving a $1 million valuation.
AI to Dominate With On-Chain Trading AgentsDeutscher expects artificial intelligence to remain a dominant narrative, focusing on the rise of AI agents in decentralized finance (DeFi). He predicts that multiple AI-driven protocols will exceed $1 billion in market capitalization as this technology transforms on-chain trading.
Real-World Asset (RWA) Tokenization to SurgeDeutscher foresees real-world asset tokenization gaining significant traction in 2025. He credits its growth to the Trump administration’s economic policies and BlackRock CEO Larry Fink’s continued advocacy for tokenized assets, which Deutscher sees as benefiting the sector.
DeFi Utility Coins Will OutperformAccording to Deutscher, utility tokens like Chainlink ($LINK), Aave ($AAVE), Enzyme ($ENA), and Uniswap ($UNI) will outperform the market. He attributes this to the Trump administration’s impact on DeFi and the increasing focus on income-generating protocols.
SOL and XRP ETF ApprovalsDeutscher predicts Solana ($SOL) and XRP will gain approval for spot exchange-traded funds (ETFs) in 2025. With Bitcoin and Ethereum spot ETF approvals already secured, Deutscher expects regulatory momentum and demand to pave the way for additional approvals.
A Strategic Bitcoin Reserve for the U.S.Deutscher believes the U.S. will finalize plans for a strategic Bitcoin reserve this year. He notes that early signs suggest this initiative is already in progress, marking a significant milestone for institutional adoption.
Sovereign Bitcoin Adoption to GrowBuilding on his ninth prediction, Deutscher expects more countries to add Bitcoin to their balance sheets in 2025. He forecasts a surge in both sovereign and institutional adoption of the cryptocurrency throughout the year.
Featured Image via Pixabay
