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Recently a reportBitwise, the cryptocurrency exchange-traded fund (ETF) issuer and asset manager, has revealed a bold forecast for Bitcoin and the broader cryptocurrency market by 2025, highlighting the significant performance of major cryptocurrencies throughout this year.
An excellent year for Bitcoin and major cryptocurrencies
Bitcoin reached an all-time high of $104,000 at the beginning of the month, representing a staggering 141.72% year-to-date increase, largely driven by the historic launch of spot Bitcoin ETFs in the US, which have amassed assets worth $33.56 billion. dollar. .
Other cryptocurrencies also showed impressive gains: Solana (SOL) rose 127.71%, XRP rose 285.23%, and Ethereum ETH rose by 75.77%.
It is worth noting that cryptocurrency-related stocks such as MicroStrategy and Coinbase also saw notable increases of 525.39% and 97.57%, respectively.
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Beyond the price rise, Bitwise notes that the regulatory landscape for cryptocurrencies has also improved significantly. In the 2024 US elections, pro-cryptocurrency candidates emerged victorious, boosting the industry’s prospects.
President-elect Donald Trump, who embraced Cryptocurrencies In his election campaign, he pledged to create a strategic reserve for Bitcoin and reform the US Securities and Exchange Commission (SEC), which has further contributed to the current bull trend.
Trump’s nomination of Scott Besent as Treasury Secretary — who has previously described cryptocurrencies as a means to freedom — signals a shift in the regulatory environment.
Optimistic forecasts for 2025
As the Bitwise team looks forward, they express their excitement at entering what they call the “golden age of cryptocurrencies.” Their forecasts are based on several key factors, including the rise Institutional adoptionAdvances in blockchain technology and expected global stimulus from major central banks.
Specifically, the report predicts that Bitcoin, Ethereum, and Solana — the “cool three” — will continue to outperform traditional asset classes.
In 2024, these cryptocurrencies significantly outperformed the S&P 500, which returned 28.07%, gold 27.65%, and bonds a meager 3.40%. Bitwise expects this momentum to continue into 2025, with all three assets hitting all-time highs.
The research indicates continued demand for Bitcoin, which is being driven by money being pumped into Bitcoin ETFsin addition to the imminent reduction in supply due to the halving in April 2024.
this Half This event aims to reduce new Bitcoin issuances, thus increasing scarcity. If the US government follows through on its proposal to create a strategic reserve of 1 million bitcoins, Bitwise predicts that the price of bitcoin will rise to $200,000 or perhaps $500,000.
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Despite its strong performance in 2024, Ethereum has faced hurdles as investors turn their attention to Bitcoin and faster-growing blockchains. However, Bitwise expects a shift in the narrative for Ethereum in 2025.
They believe that activity on Layer 2 (L2) solutions such as Base and Starknet will expand significantly, as will flows into Ethereum ETFs. TThe emergence of stablecoins and token projects on Ethereum is also expected to arouse investor interest. The company expects a significant increase to a new all-time high of $7,000 for the market-leading altcoin.
SolanaOn the other hand, it is also expected to do well in 2025, known for its quick recovery after the market crash in 2022. The study attributed Solana’s rise in 2024 to the memecoin craze, similar to the GameStop trading saga.
Looking to the future, Bitwise expects projects to continue to migrate to the Solana network, expanding its ecosystem beyond memecoins. Bitwise expects a significant increase, nearly tripling the current price record to a new high of $750 per business day.
At the time of writing, Bitcoin is trading at $96,000, while Ethereum and Solana are consolidated around $3,662 and $218, respectively.
Featured image of DALL-E, chart from TradingView.com
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