Author: James Hunt, The Block; Compiled by: Wu Zhu, Golden Finance
As we enter the first full week of 2025, analysts from research and brokerage firm Bernstein make 10 predictions for the coming year, as cryptocurrencies will enter what they describe as the 'Age of Infinity.'
The Age of Infinity is 'a long period characterized by continuous evolution and widespread acceptance, where ultimately cryptocurrencies are no longer controversial—just part of the financial system constructed for the new intelligent era,' analysts led by Gautam Chhugani wrote in a report to clients on Monday. 'Don't expect a boom-bust cycle,' he said. 'Cryptocurrencies are now firmly in the sights of corporations, banks, and institutions, becoming embedded in the foundations of our financial system.'
Following President Donald Trump's strategic Bitcoin reserve campaign promise, analysts reiterated their expectations for Bitcoin price targets, predicting it will reach $200,000 by the end of 2025.
Although analysts are uncertain whether the country will prioritize actual purchases as a legislative matter starting this year, they do expect corporate funding adoption to continue to grow, with inflows projected to exceed $50 billion in 2025, up from $24 billion last year. Analysts said MicroStrategy may lead demand again, followed by Bitcoin miners expanding capital plans and small to medium-sized companies hoping to emulate the Michael Saylor model.
They also predict that U.S. spot Bitcoin ETFs will attract over $70 billion in net inflows—double the approximately $35 billion expected in 2024—mainly due to accelerated institutional adoption by hedge funds, banks, and wealth advisors, with holdings surging to 40%, compared to just 22% of ETF investments in the third quarter of last year. Additionally, analysts expect the Bitcoin ETF whitelist process to continue, with leading national comprehensive banks and private banking platforms remaining, and the momentum of Bitcoin and Ethereum ETFs to persist, with a potential Solana ETF by the end of the year.
'The U.S. announcing a national Bitcoin reserve will spark a global race among sovereign nations to buy Bitcoin. Our expectation of Bitcoin reaching $200,000 does not consider government demand—only institutional and corporate demand,' Chhugani said. 'As corporate treasuries and Bitcoin ETFs become important components of Bitcoin ownership, we expect Bitcoin ownership to become more robust. Therefore, if Bitcoin lingers below $100,000 for longer, it will transition from traders/sellers to long-term holders like MicroStrategy and Bitcoin ETF holders.'
On Bitcoin, analysts noted that miners 'must' continue to shift capacity to artificial intelligence to create value. In 2024, there will be significant performance differences between AI-diversified companies and 'pure' Bitcoin miners. Analysts pointed out that AI-diversified companies like Core Scientific and TeraWulf achieved returns of 308% and 136% this year, respectively, while Riot Platforms and CleanSpark lost 34% and 17%. They expect this trend to continue as 'AI changes the business model of Bitcoin mining, making it more sustainable and less cyclical, thus bringing a broader base of institutional investors.'
Continuing the theme of artificial intelligence, Bernstein analysts expect that this year the integration with the crypto industry will become tighter, with the intersection of AI and crypto driving innovation in multiple areas. Key developments include decentralized AI blockchains for computing, storage, and reasoning, as well as 'human proof' authentication services, AI-integrated crypto wallets, and tokenized AI agents.
Stablecoin market size reaches $500 billion, SEC withdraws cryptocurrency cases, etc.
Bernstein analysts expect the industry will face 'unprecedented' regulatory tailwinds this year with the rise of pro-crypto governments, including potential legislation regarding stablecoins and digital asset market structure, as well as further clarifications on the definition of 'crypto securities.'
'The stablecoin bill will be viewed as a priority. Stablecoins further strengthen the dollar by purchasing Treasury bonds and online distribution of digital dollars,' Chhugani stated. 'The market structure for digital assets aids legal clarity and licensing for exchanges, brokers/dealers, including the legal status of non-custodial Defi protocols, excluding them from broker/dealer status. Finally, it limits the definition of crypto securities and allows the CFTC more oversight over most digital assets, except a small portion classified as securities.'
Such legislation in the U.S. could drive significant growth in the global stablecoin market, with analysts predicting that by 2025, the global stablecoin market size will exceed $500 billion, more than double the 55% growth expected in 2024, reaching over $200 billion, as its applications extend beyond the cryptocurrency industry, especially in global cross-border B2B payments and cross-border remittance solutions.
Additionally, analysts expect the more pro-crypto U.S. Securities and Exchange Commission to withdraw or resolve existing cases against cryptocurrency companies and allow more private crypto firms to enter the public market, with IPOs becoming further positive catalysts for the market. They also anticipate that cryptocurrency exchanges and platforms like Robinhood will achieve tokenization of stock markets, enabling blockchain-based 24/7 liquidity stock market trading, with banks and asset management companies launching more crypto-related products.
Finally, Chhugani noted that despite a poor performance last year, Ethereum is expected to become the next 'institution darling' by 2025. Analysts stated that 28% of Ethereum is staked, 3% absorbed by ETFs, and 7.5% locked in smart contracts, with Ethereum's limited supply and utility as a fee-paying and collateral asset for Layer 1 and Layer 2 chains making it appealing to traditional investors seeking intrinsic value.
