Steno Research stated in a research note that 2025 will be the best year ever for the cryptocurrency market, with Bitcoin (BTC) and Ether (ETH) both reaching all-time highs, along with other potential "notable positive developments."

Steno Research predicts the spot prices of BTC and ETH will exceed $150,000 and $8,000, respectively. Analysts are also "increasingly optimistic about the upcoming altcoin season," according to the December research note.

The report states that the forecast price increases for BTC and ETH reflect an "unprecedented favorable regulatory environment for cryptocurrencies, a supportive macroeconomic environment marked by lower interest rates and improved liquidity, as well as strong historical performance following Bitcoin halving."

“Additionally, institutional adoption is expected to reach unprecedented levels, further driven by capital inflows into U.S.-based Bitcoin and Ethereum ETFs.”

Steno expects BTC and ETH exchange-traded funds (ETFs) to see net inflows of $48 billion and $28.5 billion, respectively, in 2025.

Altcoin Season

Ether is predicted to perform particularly well in 2025, significantly outperforming Bitcoin, Steno said. By 2025, Steno expects the ETH/BTC ratio to reach "at least 0.06." According to TradingView, this figure is nearly double the current level of about 0.035.

According to the report, this will open a broader alternative cryptocurrency season — also known as “altcoin” — in 2025, with Bitcoin's dominance decreasing from the current nearly 57% to around 45%.

Bitcoin's dominance measures the percentage of BTC relative to the total cryptocurrency market capitalization.

Steno's prediction is “partly based on the argument that Donald Trump's victory in the U.S. presidential election is more favorable for alternative cryptocurrencies than for Bitcoin.”

Steno said Trump's presidency “encourages stronger on-chain activity, significantly benefiting altcoins such as Ethereum and Solana.”

According to the report, the total value locked (TVL) in decentralized applications is expected to exceed $300 billion by 2025, far surpassing the 2021 peak of about $180 billion.


Trump Pump

Others, including asset management firm Grayscale, are similarly optimistic. In December, Grayscale added several decentralized finance (DeFi) applications, including two applications on Solana, to the list of the top 20 tokens to watch in the first quarter of 2025.

Grayscale cites the warming policy environment in the U.S. as a key factor. Trump has promised to appoint industry-friendly leaders to key regulatory agencies and turn the U.S. into the "cryptocurrency capital of the world."

Raj Brahmbhatt, CEO of Web3 payment company Zeebu, told Cointelegraph in December that: “In the U.S., with Trump's victory, I am very optimistic that the U.S. will become the global leader in this space by the end of this year.”

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