Steno Research asserts that 2025 will be crypto’s best year, predicting higher prices for Bitcoin and Ethereum.
With the turn of the new year, the crypto space is awash with predictions of what 2025 may hold. Among the firms that have recently shared their outlook is Steno Research. As with many other research outlets, the company has shared a significantly optimistic forecast for the new year.
Crypto’s Best Year Yet?
Analysts at financial Research firm Steno Research have asserted that 2025 will be crypto’s best year. They disclosed this in the December 2024 report outlining predictions for the new year.
Steno Research cited several factors for its conviction. These factors include anticipated favorable regulations under a Donald Trump-led administration, supportive macroeconomic conditions as interest rates decline to boost liquidity, and unparalleled levels of institutional adoption driven by spot Bitcoin and Ethereum exchange-traded funds (ETFs).
Similar to 2024, we expect the U.S. crypto ETFs to take center stage once again in 2025, partly due to the direct buying pressure they generate and partly because they serve as a proxy for non-native crypto retail and institutional interest in the asset class.
We project that… pic.twitter.com/T8cs5gEbJy
— Mads Eberhardt (@MadsEberhardt) December 30, 2024
The firm expects inflows to these products to spike in 2025. Bitcoin ETFs will attract $48 billion in net inflows in 2025, the firm said, averaging $4 billion in monthly inflows. This would mark a 36% increase from the $35.24 billion recorded in 2024, per SoSoValue data.
At the same time, Steno Research believes Ethereum ETFs will generate a total of $28.5 billion in net inflows in 2025, averaging $2 billion a month in the first half of the year and $3.5 billion in the second half. The firm bases this estimate on the belief that these products will eventually be able to stake a portion of their holdings to earn yield for investors by the second half of the year under a more favorable SEC.
Unsurprisingly, all of these factors equate to higher crypto asset prices. For one, Steno Research predicts that Bitcoin will soar as high as $150,000, representing a nearly 56% increase from the current price of about $96,200.
Interestingly, Steno Research expects Ethereum to outperform Bitcoin in 2025, predicting that the ETH/BTC ratio will recover to 0.06 from current levels around 0.0357. For the firm, this ETH/BTC ratio recovery translates to a $8,000 price target for ETH, representing an over 135% increase from the current price of about $3,400.
Altcoins for the Win?
Beyond Ethereum, Steno Research believes that altcoins, in general, will likely be on a tear in 2025. The firm makes this case by arguing that the Donald Trump administration favors altcoins more than Bitcoin as the latter already had significant regulatory clarity.
Meanwhile, the firm expects the anticipated clarity for altcoins to increase adoption, especially by institutions that have long been restrained by regulatory considerations.
The result is expected to be a significant drop in Bitcoin’s market dominance from the present 57.42% to as low as 45%. At the same time, total value locked (TVL) in decentralized protocols is expected to hit record highs of $300 billion, up over 140% from roughly $123 billion at the time of writing.
These factors will usher in the so-called altcoin season, Steno Research asserted.
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