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ETH would also have a positive 2025, reaching $7,000.
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RWA tokenization will be a growing trend.
A new report from Bitwise, the asset management company that issues one of the largest Bitcoin exchange-traded funds (ETFs), reveals its projections for the future of the market.
“2024 was a monumental year for cryptocurrencies,” he introduces in the report. “Cryptocurrency prices soared to new all-time highs, spot bitcoin ETFs saw the most successful ETF launch of all time, and pro-cryptocurrency politicians won big in Washington,” he elaborates.
However, market growth in 2024 does not compare to what it envisions for next year. “We see even brighter things ahead: 2025 will usher in the ‘golden age’ of cryptocurrencies,” exclaims Bitwise.
Regarding this, the company revealed its 10 predictions for next year. “Bitcoin, Ethereum and Solana will reach new all-time high prices, with Bitcoin trading above $200,000,” is his first projection.
Record flows into bitcoin exchange-traded funds saw BTC hit new all-time high prices in 2024. “We don’t see this slowing down anytime soon,” Bitwise noted. In fact, it provides the opposite. Precisely, his second prediction is that bitcoin ETFs will attract more flows in 2025 than in 2024.
This scenario is encouraged, he clarifies, by the demand for ETFs with the reduction in new supply thanks to the April 2024 halving, plus the possible purchases by companies and governments. In fact, another related prediction from the manager is that the number of countries that own bitcoin will double in 2025.
He also emphasizes that, if the United States government goes ahead with the proposal to have 1 million bitcoins, its price will reach USD 500,000 or more.
“The fact that the United States is actively considering building a strategic bitcoin reserve will start an arms race around the world for governments to buy bitcoin before it is too late,” Bitwise distinguishes, agreeing with other specialists reported by CriptoNoticias.
National governments that have bitcoin and their amount. Source: Bitwise.
Without going any further, this is something that is already being seen, with legislators from Poland to Brazil presenting bills that push to have strategic reserves of bitcoin in their countries, he indicates. According to BitcoinTreasuries.net, there are currently nine countries with BTC holdings, with the United States leading the ranking for seized holdings.
As to ether (ETH), the Ethereum cryptocurrency, Bitwise envisions a target price of USD 7,000 by 2025. This crypto asset, which is the most capitalized after bitcoin, lost popularity among many investors who focused their attention on BTC or cryptocurrency networks that compete with Ethereum.
As Warren Buffett famously said, “be fearful when others are greedy and be greedy when others are fearful,” says the fund manager. “We expect a narrative change for Ethereum in 2025,” he adds.
According to the company, this will happen as activity on Layer 2 networks like Base and Starknet accelerates and spot ETH ETFs attract capital. In addition, he predicts a growth of stablecoins and tokenized projects built on Ethereum that will favor such a scenario.
The third crypto asset with the most capitalization, solarium (SOL), which set a new all-time high last month of USD 263, will reach USD 750 by 2025according to Bitwise. “The catalyst will be the arrival of ‘serious’ projects on the network, complementing its dominance in the field of memecoins,” he argues.
“We have already seen initial examples, such as the case of Render, which has taken the leap,” he considers. “We expect this trend to accelerate in the coming year; Solana’s momentum is just beginning to consolidate,” he maintains.
The top three crypto assets, BTC, ETH, and SOL, outperformed all major asset classes in 2024, rising 141%, 75%, and 127% respectively. Meanwhile, the S&P 500 (SPX) returned 28%, gold 27%, and bonds 3%. “We expect that momentum to continue through 2025,” says Bitwise.
Coinbase will enter the S&P 500 and MicroStrategy will enter the Nasdaq 100, according to Bitwise
Another prediction of the ten that Bitwise presented for 2025 is that Coinbase will surpass Charles Schwab as the most valuable brokerage company in the world, and its shares will exceed $ 700 per share. Currently, this is the most capitalized publicly traded cryptocurrency exchange.
In relation to this, he also predicts that Coinbase will enter the S&P 500 (SPX) and MicroStrategy will enter the Nasdaq 100 (NDX), which Adds Cryptocurrency Exposure to Nearly Every U.S. Investor’s Portfolio. These are the indices that compile the shares of the main listed companies.
In tune, he expects the United States Department of Labor to relax its guidance against cryptocurrencies in 401(k) plans, retirement investment accounts. He indicates that this other projection “will allow billions of dollars to flow into crypto assets.”
According to Bitwise, 2025 will be the year of initial public offerings (IPO) for cryptocurrency companieswith at least five unicorns that will go public in the United States. With this idea, seven of the manager’s predictions for next year are completed.
For the manager, AI, stablecoins and memecoins will continue to gain attraction
The remaining three predictions have to do with cryptoasset niches. One is that tokens launched by artificial intelligence (AI) agents will lead an even bigger memecoin mania than in 2024. Based on the growing interest in this sector.
In addition to this, Bitwise considers that Capital in stablecoins will double to USD 400 billion next year as the United States passes legislation for this sector. This is something that, in turn, promotes greater liquidity that can enter the bitcoin and cryptocurrency market.
And, as a final point, he maintains that the value of tokenized real-world assets (RWA), which today is USD 13 billion, will exceed USD 50 billion as Wall Street’s adoption of cryptocurrencies intensifies in 2025.
Capitalization of RWA throughout history. Source: Bitwise.
As a bonus track, the company has added an extra prediction that goes further into the future. “In 2029, bitcoin will surpass gold’s market capitalization of $18 trillion and will be trading above $1 million per bitcoin,” he concludes from his estimates.
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