Bernstein Forecasts Major Crypto Adoption in 2025 with $200K Bitcoin Target
As the crypto market begins 2025, Bernstein Research analysts have introduced the concept of the "Infinity Age" in cryptocurrency. In a January 6 client note, managing director Gautam Chhugani emphasized that cryptocurrency is transitioning from a niche innovation to an integral component of global finance.
Chhugani noted a shift away from boom-bust cycles, stating that cryptocurrency has gained traction among corporations, banks, and institutions.
Bitcoin (#BTC) started the year positively, trading around $99,200 with a 6% increase since the beginning of 2025. Bernstein's analysts maintain a price target of $200,000 for Bitcoin by the end of the year. This projection aligns with President-elect Donald Trump's supportive stance on Bitcoin, including plans to build a strategic Bitcoin reserve.
Bernstein highlights a growing corporate interest in Bitcoin, estimating treasury inflows to exceed $50 billion in 2025, up from $24 billion in 2024. Michael Saylor’s MicroStrategy leads this trend with over 446,400 Bitcoin held, suggesting that smaller companies may adopt similar Bitcoin-focused treasury strategies.
The analysts forecast significant growth in spot Bitcoin ETF inflows, predicting net investments to reach over $70 billion by year-end, doubling the $35 billion seen in 2024. Spot Bitcoin ETFs started 2025 strongly, recording a net inflow of $908 million on January 3, the highest since November 21, 2024, accumulating a total of $35.9 billion in under a year.
Ethereum Poised for Growth
While Bitcoin leads, Ethereum (#ETH) is positioned as the "institutional darling" of 2025. Despite lackluster performance in 2024, its limited supply and broad utility across Layer 1 and Layer 2 chains attract traditional investors. Ethereum-based ETFs currently have a net inflow of $2.64 billion and are expected to remain popular.
Bernstein also anticipates a potential launch of a Solana ETF by year-end.
Clear Regulations to Drive Stablecoin Market Surge
The "Infinity Age" is marked by regulatory optimism. The incoming pro-crypto US administration is expected to implement favorable legislation regarding stablecoins and digital asset markets. Bernstein suggests that a more crypto-friendly SEC could resolve ongoing cases with crypto firms, facilitating initial public offerings (IPOs) and creating new growth opportunities.
This regulatory clarity is projected to fuel rapid growth in the stablecoin market, which Chhugani estimates will surpass $500 billion by year-end, more than doubling its current valuation.