Last year was remarkable for cryptocurrency. Bitcoin (CRYPTO: BTC) broke the $100,000 barrier, the intersection of artificial intelligence (AI) and blockchain technology took center stage, and altcoins reached new heights. But now that 2024 is in the past, a new question arises: what could the new year have in store for the ever-evolving world of crypto?
While it’s all speculation, guessing what’s next is half the fun. Here are my three predictions for crypto in 2025.
Bitcoin’s stunning rally in 2024 has cemented its place as the most valuable cryptocurrency in the world, but I believe this is far from over. My first prediction is that Bitcoin will reach $200,000 by 2025. Two key factors support this bold goal: the halving effect and institutional demand through exchange-traded funds (ETFs).
The Bitcoin halvewhich took place in April 2024, halved supply growth. This supply shock, which happens about every four years, historically serves as the foundation for Bitcoin’s strongest bull runs, and I expect 2025 to be no different. Halving events consistently lead to an increase in demand as scarcity increases, causing Bitcoin’s price to rise.
Furthermore, the adoption of spot Bitcoin ETFs in 2024 has already opened the door to a wider range of investors. These ETFs make it easier than ever for retail investors to add Bitcoin exposure to 401(k)s and individual retirement accounts (IRAs), as well as for institutional investors who manage pension funds, hedge funds, and endowments, all without the need to navigate the complexity of crypto wallets and exchanges. Data shows that these ETFs are accumulating Bitcoin at a rate of unprecedented pacecreating persistent buying pressure.
In fact, if newly elected President Donald Trump follows through with his proposal to create a strategic Bitcoin reserve for the US, the price target for Bitcoin could rise even further. While the details of such a plan remain unclear, the prospect of national adoption alone is a game changer for Bitcoin’s trajectory.
Ah, alt season, everyone’s favorite time in the crypto cycle. This is the period when capital flows from Bitcoin into smaller cryptocurrencies, causing altcoin prices to skyrocket. Historically, alt season occurs the year after a Bitcoin halving, and 2025 fits that timeline perfectly.
But my prediction goes further than just stating that alt season will happen. I believe 2025 will bring two major surprises.
First, the alternate season will arrive later than most people expect. Why? Liquidity. Altcoins thrive when liquidity floods the market, but the current macroeconomic environment suggests a more cautious pace. While expected central bank rate cuts should help inject some liquidity, the Federal Reserve is still tightening the money supply and the dollar continues to rise to new highs. While crypto can still rise in these scenarios, these factors usually lead to Bitcoin attracting the majority of capital, leaving altcoins behind.