Bitwise Predicts Bitcoin, Ethereum, and Solana Will Reach Record Highs in 2025
In a recent report, Bitwise, an ETF issuer and asset manager, outlined predictions for Bitcoin and the cryptocurrency market by 2025, emphasizing major cryptocurrencies' performance this year.
A Stellar Year For Bitcoin And Major Cryptos
Bitcoin reached an all-time high of $104,000, representing a 141.72% increase year-to-date, primarily due to the launch of spot Bitcoin ETFs in the United States, which gathered $33.56 billion in assets.
Other notable gains include Solana (SOL) at 127.71%, XRP at 285.23%, and Ethereum (ETH) at 75.77%. Crypto-related equities such as MicroStrategy and Coinbase increased by 525.39% and 97.57%, respectively.
The regulatory landscape also improved, with crypto-friendly candidates winning in the 2024 US elections. President-elect Donald Trump pledged to create a strategic Bitcoin reserve and reform the SEC, enhancing industry prospects. His nomination of Scott Bessent as Treasury Secretary, who advocates for cryptocurrencies, indicates a regulatory shift.
Optimistic Predictions For 2025
Bitwise anticipates entering a "Golden Age of Crypto," driven by rising institutional adoption, advancements in blockchain technology, and expected global stimulus from central banks.
They predict that Bitcoin, Ethereum, and Solana—the "magnificent three"—will outperform traditional assets. In 2024, these cryptocurrencies outpaced the S&P 500's 28.07%, gold's 27.65%, and bonds' 3.40%. Bitwise expects new all-time highs for all three in 2025.
The demand for Bitcoin is fueled by investments in Bitcoin ETFs and an impending supply reduction due to the April 2024 Halving event, designed to decrease new Bitcoin issuance and increase scarcity. If the US establishes a strategic reserve of one million Bitcoins, prices could reach $200,000 or even $500,000.
Despite Ethereum's strong performance, it faces challenges as investors focus on Bitcoin and faster-growing blockchains. Bitwise predicts renewed interest in Ethereum in 2025, driven by growth in Layer 2 solutions like Base and Starknet, inflows into spot Ethereum ETFs, and the rise of stablecoins and tokenized projects. They forecast Ethereum reaching a new all-time high of $7,000.
Solana, known for its quick recovery post-2022 market downturn, is also expected to perform well, driven by a memecoin frenzy similar to the GameStop saga. Bitwise anticipates ongoing project migration to Solana, predicting a price increase to $750 per SOL.
Currently, Bitcoin trades at $96,000, while Ethereum and Solana are priced around $3,662 and $218, respectively.
Featured image from DALL-E, chart from TradingView.com