4 is coming to an end, and it has been a relatively good year for the ecosystem. But what lies ahead for the cryptocurrency market in 2025?
This is a burning question that investors may have. In this analysis, he discusses insights from prominent analysts about the year ahead: While some expect the bull market to gain momentum, others urge caution. Here is a breakdown of the most important forecasts and key signals from critical indicators.
Analysts' predictions: Bitcoin will continue to rise, but first...
According to Benjamin Cowen, cryptocurrency analyst and founder of IntoTheCryptoverse, Bitcoin (BTC) could start 2025 with a correction. Cowen suggests that this could happen because Bitcoin showed similar behavior in January after previous halvings. He advises market participants to mentally prepare for the possibility of a pullback.
“In the last two cycles, BTC has had a correction in January of the year following the halving. It might be worth being mentally prepared for that. So it will be January 2025,” wrote Coin on X.
This hypothesis, however, contradicts several views that predict that Bitcoin’s price could rise to $120,000 in the first month. Currently, BTC is trading at $97,970. This year, the digital currency reached an all-time high of $108,268, representing a 112% increase since the beginning of the year (YTD).
Ki Young-Joo, CEO of analytics platform CryptoQuant, believes that the Bitcoin bull market could continue until mid-2025. Young-Joo made the statement in July, noting that BTC could attract fresh capital to extend the crypto bull market in 2025 into that period.
However, in November, Young Joo changed his mind. According to him, if Bitcoin’s price ends 2024 strongly, it could pave the way for a bear market in 2025.
“I expected corrections as BTC futures market indicators were overextended, but we are entering price discovery, and the market is getting hotter. If correction and consolidation happen, the upside run may extend; however, a strong rally at the end of the year could set up 2025 for a bear market,” Young-joo said.
Recently, Axel Adler shared his view on Bitcoin Price Temperature (BPT), which measures the distance between Bitcoin’s current price and its 4-year moving average.
Bitcoin typically hits a cycle high when the BPT reading is between 6 and 8. On December 7, Adler noted that the indicator was at 3.2. However, he stated that if the reading rises to 8, it could push Bitcoin’s price to $178,000.
“At a BPT level of 8, the price could reach $178K per BTC. Essentially, this works as a target for 2025, which could be achieved if the current demand for the coin in the spot market continues,” Adler stated.
Altcoins Not Out of the question: Solana vs. Ethereum Competition Will Continue
However, Bitcoin is only one part of the cryptocurrency market. Therefore, it is important to look at other assets and the potential macroeconomic outlook that may occur for cryptocurrencies in 2025. At the same time, it is important to note that besides Bitcoin, only a few altcoins from the 2021 bull market managed to reach new highs.
However, there were some positive signs. For example, BNB and Solana (SOL) surged to new highs, while XRP price showed strong performance during this last quarter. Some relatively new altcoins, such as Sui (SUI), Mantra (OM), and Bitget Token (BGB), also performed impressively.
This assessment would be incomplete without mentioning meme coins, which have had a strong hold on the market during this cycle. Because of this, experts have predicted that meme coins, AI coins, and Real-World Asset Tokens (RWA) may continue to perform well in 2025.
However, Ethereum (ETH) has been a bit of a disappointment. As a result, digital asset management firm 21Shares believes that Solana could continue to take market share from Ethereum in 2025.
In its report, 21Shares attributed this prediction to the low fees offered on the Solana blockchain and the integration of PayPal’s stablecoin (PYUSD). Moreover, it emphasized that this does not mean that SOL will surpass the market cap of ETH.
“While we don’t expect a full-fledged ‘flippening’, Solana is poised to outperform and capture more market share than Ethereum through improved user experience and infrastructure,” the report said.
However, Ethereum’s total value locked (TVL) remains higher than Solana’s. At the time of writing, Solana’s TVL is $8.60 billion, while Ethereum’s is $70.10 billion.
If the forecast comes true, the TVL gap could narrow. Regarding the Solana ETF application, 21Shares indicated that approval could come within the first three quarters, but could come by the end of 2025 or early next year.
“Solana’s growing role in TradFi is expected to expand the arena for traditional financial products such as Solana futures on CME or US-based Solana ETFs,” 21Shares added. “While ETF approval may not happen in 2025, the likelihood is expected to increase as we approach the end of the year and the first half of 2026.”
The Trump Effect and What the Adoption Process Might Look Like
From a macroeconomic perspective, the asset manager expects the approval of Bitcoin ETFs to encourage greater institutional adoption globally. This sentiment may be linked to the election of Donald Trump as US president.
During his campaign, Trump repeatedly promised that his administration would provide clearer regulations for the cryptocurrency sector. He is scheduled to be inaugurated in January 2025, and the resignation of SEC Chairman Gary Gensler could allow the market to experience more freedom.
Outside the US, South Korea is considering lifting its ban on cryptocurrency ETFs. If that happens, it could drive trading volumes to a record high in the Asian region. The UK isn’t out of the woods either, with speculation mounting that the country could give retail investors access to cryptocurrency trading notes (ETNs).
Based on the above, it seems that the cryptocurrency market in 2025 may offer more positive results than what happened this year. It is also possible that another country will adopt Bitcoin as a strategic reserve asset, following in the footsteps of El Salvador.
As of this writing, the countries that have the potential to do this are the United States and Argentina led by Javier Milei. If this happens, Bitcoin’s price could reach new highs, and its total market cap could rise to over $5 trillion.
This situation seems risky for altcoins. However, if a high level of capital flows into these assets, they may also appear to be on the rise. At the same time, investors may need to be cautious. If the market sees cryptocurrency platform crashes like in 2025, this prediction may be invalidated, and the market may enter a bearish phase.
