2024 has been a significant year for the cryptocurrency industry, marked by the successful launch of spot Bitcoin exchange-traded funds (ETFs), a more favorable U.S. crypto regulatory landscape, and bullish market movements. However, according to Bitwise Asset Management, 2025 could see even greater developments.
In a recent report, the firm, known for its crypto investment products, shared ten bold predictions for the coming year.
Bitwise predicts that 2025 will be a record-breaking year for cryptocurrencies, with Bitcoin surging to $200,000, Ether reaching $7,000, and Solana seeing a substantial rise to $750. These price jumps are expected to be fueled by continued ETF inflows, which Bitwise anticipates will grow even larger than in 2024.
Despite the already strong performance of ETFs, Bitwise points out that year-two inflows are typically higher than in the initial year, especially as institutional investors grow more confident and finalize their due diligence.
A potential shift in the U.S. Department of Labor’s stance on crypto could also open the floodgates for billions in investments from retirement plans, including 401(k)s, into crypto assets.
Additionally, Bitwise forecasts that political moves, such as the creation of a U.S. strategic Bitcoin reserve, could spur a Bitcoin arms race among nations. This could lead to the number of countries holding Bitcoin doubling in 2025, from nine to eighteen.
Stablecoins, according to Bitwise, are also poised for growth, benefiting from clearer legislation and rising prices. The market capitalization of stablecoins could reach $400 billion, doubling its current size. Tokenized real-world assets (RWAs) are expected to see strong growth as Wall Street deepens its involvement, possibly surpassing $50 billion in value.
The memecoin craze of 2025 may surpass that of previous years, driven by AI technology that simplifies the launch of new tokens. Meanwhile, crypto companies are expected to thrive, with several, including Circle, Figure, Kraken, and Chainalysis, likely to go public through initial public offerings (IPOs). Coinbase, already publicly traded, could see its stock price soar to over $700 per share, potentially surpassing Charles Schwab to become the most valuable brokerage in the world.
Bitwise also predicts that Coinbase’s inclusion in the S&P 500 and MicroStrategy’s likely entry into the Nasdaq 100 could bring widespread exposure to crypto for U.S. investors.
With crypto assets continuing to grow in popularity and institutional adoption increases, it seems like 2025 will set the stage for a new era in digital finance.
