VanEck’s head of digital asset research, Matthew Sigel, has outlined a detailed forecast for the cryptocurrency market through 2025.

Sigel predicted Friday that Bitcoin (BTC) will reach $180,000 in the first quarter before experiencing a correction. The analysis projects Ethereum (ETH) reaching beyond $6,000, while coins like Solana (SOL) and Sui (SUI) could achieve $500 and $10, respectively.

Sigel anticipates this initial peak will be followed by a market correction, with Bitcoin pulling back 30% and altcoins experiencing deeper declines of up to 60% during the summer months.

To identify potential market tops, Sigel highlights several key indicators for investors to monitor. The research points to sustained high funding rates as a crucial signal.

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He noted that when traders consistently pay funding rates above 10% for three months or longer to bet on Bitcoin price increases, it typically indicates excessive speculation in the market.

The analysis also emphasizes the importance of tracking unrealized profits among Bitcoin holders. When a large proportion of holders maintain paper gains with a profit-to-cost ratio exceeding 70%, it often signals market euphoria.

Bitcoin’s market dominance serves as another critical indicator. Sigel warns that a drop below 40% could signal excessive speculation in altcoins, typical of late-cycle market behavior. 

The research attributes current market momentum largely to Donald Trump’s election victory and his administration’s projected appointments. The anticipated crypto-friendly leadership team, including JD Vance as VP and Paul Atkins as SEC Chair, suggests a shift from previous restrictive policies toward a framework that positions Bitcoin as a strategic asset.

Following the summer correction, Sigel forecasts a market recovery in fall 2025. Major cryptocurrencies will likely reclaim their previous all-time highs by year-end.

This projection assumes continued institutional adoption and supportive regulatory developments under the new administration.

This market outlook provides investors with specific price targets and warning signals to monitor, while acknowledging the impact of political developments on the crypto market. 

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Hungary is taking a significant step towards embracing crypto by introducing a proposed bill that would allow banks, investment funds, and asset managers to offer crypto services to customers.

Hungary’s move to embrace cryptocurrencies comes at a time when the global crypto market is making a comeback after a year-long market crisis.

According to a report, the proposed law, announced by the Hungarian Ministry of Economy, aims to establish a clear regulatory framework for the issuance and use of digital assets in the country. 

The regulation is scheduled to take effect starting this year on June 30 upon approval.

Central Bank Of Hungary To Regulate Crypto Assets

Under the proposed law, the Central Bank of Hungary, Magyar Nemzeti Bank (MNB), will oversee the regulation of crypto assets in the country. 

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MNB will be responsible for providing a regulatory framework for digital asset services, ensuring that banks and financial institutions comply with the guidelines.

The move represents a significant shift, as before now, cryptocurrencies in Hungary lacked proper regulation with no definite classification of the virtual assets as seen in other European jurisdictions such as France and Germany, which categorized them as financial instruments.

Despite the new proposed regulation, Hungary has not yet recognized virtual assets as legal tender. 

However, individuals can use their credit and debit cards to purchase cryptocurrencies from local and foreign exchanges. This indicates a gradual acceptance of cryptocurrencies within the country’s financial ecosystem.

Hungary To Consider CBDCs

Hungary, known for its cautious approach towards innovation, is not only making strides to embrace crypto but also considering the possibility of issuing a central bank digital currency (CBDC).

Last year, Anikó Szombati, the chief digital officer of MNB, mentioned plans to explore CBDCs through various pilots. 

However, she noted that Hungary does not currently see an urgent need for a large-scale introduction of a retail CBDC.

The country’s new legislative initiative aligns with the European Union’s efforts to create a regulatory environment that accommodates cryptocurrencies while ensuring security and compliance. 

The law aims to integrate digital assets into traditional financial systems in a technology-neutral manner. 

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It could also encourage other European countries to adopt similar regulatory frameworks, promoting innovation in the financial sector and aligning with EU directives.

Meanwhile, Hungary’s move to embrace cryptocurrencies comes at a time when the global crypto market is making a comeback after a year-long market crisis. 

The total market capitalization of cryptocurrencies recently surpassed $2 trillion, with Bitcoin (BTC) leading the way as the most valuable digital asset followed by Ethereum (ETH).

Disclaimer: The information provided is not trading advice. Bitcoinworld.co.in holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

 

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