Crypto Predictions for 2025 Highlight Major Market Changes
2025 is approaching, prompting industry commentators to share predictions about the future of cryptocurrency and investments.
Price Predictions and Market Insights
Amidst various price forecasts as bitcoin reaches new all-time highs, one notable stock price expectation comes from Bitwise. They predict Coinbase’s stock price will rise from approximately $324 to $700, overtaking Charles Schwab as the most valuable brokerage globally.
Bitwise also accurately anticipated MicroStrategy's addition to the Nasdaq 100 index and forecasts that Coinbase will join the S&P 500 next year. BLOK portfolio manager Dan Weiskopf expressed skepticism about MicroStrategy’s inclusion in the S&P 500 by 2025 but believes it will happen eventually.
Weiskopf and the Amplify ETFs team suggested a hypothetical scenario where, if bitcoin exceeds $200,000, MicroStrategy could have a larger weighting in the S&P 500 than Bank of America.
Regulatory Developments
VanEck analysts Matthew Sigel and Patrick Bush indicated that President-elect Trump's appointments signal a policy framework positioning bitcoin as a strategic asset, referencing a national bitcoin reserve proposal by Senator Cynthia Lummis.
Trump suggested the US would take significant steps regarding cryptocurrency, stating, "Others are embracing it and we want to be the head."
As more companies hold bitcoin, strategies involving bitcoin could become standard in corporate finance, as noted by CoinShares.
On the regulatory front, Bitwise anticipates the US Department of Labor will ease restrictions on crypto in 401(k) plans by 2025. This aligns with a trend of increased participation from pension funds and registered investment advisors.
A repeal of SAB 121 may not be necessary in 2025, according to Ava Labs' deputy general counsel Wee Ming Choon, who believes a new SEC administration could easily rescind the bulletin.
Tokenization of Real-World Assets
Both Bitwise and VanEck predict that the tokenized real-world asset (RWA) market will exceed $50 billion. Eric Ervin from Securitize mentioned at a recent panel that BlackRock's tokenized fund BUIDL, backed by US Treasurys, could reach $50 billion independently within a few years.