 will outperform Bitcoin (BTC) in 2025, citing bullish price forecasts and institutional adoption.){kind=link}
Ethereum (ETH), is set to surpass its larger competitor, Bitcoin (BTC), in performance by 2025, according to a report by Steno Research. The report, released on Sunday, cites historical trends, macroeconomic conditions, and the potential impact of Donald Trump’s U.S. presidential victory as key factors influencing this outlook.
New ATHs for Ether and Bitcoin
The report forecasts Bitcoin reaching a minimum price of $150,000 in 2025, a significant rise from its current value of approximately $94,000. On the other hand, Ether is expected to more than double, surging to at least $8,000 from its current price of $3,400.
The optimistic projection is based on favourable regulatory developments, declining interest rates, improved liquidity, and the strong performance traditionally observed after Bitcoin halving events.
Regulatory Tailwinds and Institutional Adoption
Steno Research highlights the role of an increasingly favourable regulatory environment in driving cryptocurrency prices higher. Institutional adoption is also expected to play a crucial role, with the report predicting massive inflows into U.S.-based Bitcoin and Ethereum exchange-traded funds (ETFs). BTC ETFs are anticipated to see net inflows of $48 billion, while ETH ETFs could attract $28.5 billion in 2025.
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The growing interest from institutional investors is expected to stabilize the market and attract more liquidity, boosting the adoption of both Bitcoin and Ethereum. The potential introduction of additional cryptocurrency ETFs in the U.S. further strengthens this positive outlook, particularly for altcoins.
Altcoins and Changing Market Dynamics
While Bitcoin and Ethereum dominate the cryptocurrency market, Steno Research notes that altcoins are likely to capture increased attention in 2025.
Analysts argue that Donald Trump’s potential return to the White House could create a more favourable environment for altcoins than for Bitcoin. This shift in sentiment could lead to Bitcoin’s market dominance falling to around 45%, down from its current level of 56.6%.
The DeFi sector is also expected to benefit from these trends. Steno forecasts the TVL in dApps to reach $300 billion in 2025, marking a new all-time high. This surge in TVL would further validate the case for higher altcoin prices, as these tokens often power DeFi platforms.
Macroeconomic Factors Supporting Growth
The report points to broader macroeconomic conditions as a catalyst for cryptocurrency growth. Declining interest rates and improved global liquidity are creating an environment conducive to higher asset prices, including cryptocurrencies. These factors, combined with the historical price surges seen after Bitcoin halving events, provide strong support for the bullish projections.
As the cryptocurrency market evolves, the interplay between regulatory developments, institutional adoption, and macroeconomic trends will shape its trajectory. Bitcoin and Ethereum remain at the forefront, but the growing focus on altcoins suggests a more diversified market landscape.
If Steno Research’s predictions hold, 2025 could mark a transformative year for the cryptocurrency industry, with record-breaking prices and unprecedented levels of adoption across digital assets.
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