Bernstein analysts’ top 10 predictions for the crypto market in 2025

Author: James Hunt, The Block; Compiler: Wu Baht, Golden Finance

As we enter the first full week of 2025, analysts at research and brokerage firm Bernstein have made 10 predictions for the year ahead as cryptocurrencies enter what they describe as the "era of infinity."

The Infinite Era is "a long period characterized by continued evolution and widespread acceptance, where eventually cryptocurrencies are no longer controversial — just part of a financial system built for the new smart era," analysts led by Gautam Chhugani said on Monday wrote a report to clients. "Don't expect a boom-bust pattern," he said. “Cryptocurrencies are now firmly on the radar of businesses, banks and institutions, and woven into the very foundation of our financial system. ”

Analysts have reiterated their expectations for a Bitcoin price target of $200,000 by the end of 2025, following President-elect Donald Trump’s campaign pledge to strategically reserve Bitcoin.

While analysts are unsure whether the state will make actual purchases a legislative priority starting this year, they do expect corporate funding adoption to continue growing, with inflows expected to exceed $50 billion in 2025, compared with $24 billion last year. Analysts say MicroStrategy is likely to lead demand again, followed by Bitcoin miners expanding capital plans and small and mid-sized companies looking to emulate Michael Saylor 's model.

They also predict that U.S. spot Bitcoin ETFs will attract more than $70 billion in net inflows—double the roughly $35 billion in 2024—primarily due to accelerated institutional adoption by hedge funds, banks, and wealth advisors. Soared to 40%, while ETF investment accounted for only 22% in the third quarter of last year. In addition, analysts expect that the Bitcoin ETF whitelisting process will continue, leading national universal banks and private banking platforms will continue to exist, Bitcoin and Ethereum ETF momentum will continue, and a Solana ETF may appear before the end of the year.

"The U.S. announcement of a national Bitcoin reserve will trigger a rush by global sovereigns to buy Bitcoin. Our $200,000 Bitcoin price forecast does not take into account government demand - only institutional and corporate demand," Chhugani said. “As corporate treasury and Bitcoin ETFs become a significant part of Bitcoin ownership, we expect Bitcoin ownership to become more entrenched. Therefore, if Bitcoin lingers below $100,000 for longer, Bitcoin will trade from Investors/sellers passed on to long-term holders such as MicroStrategy and Bitcoin ETF holders.”

On Bitcoin, analysts said miners "must" continue to shift capacity to artificial intelligence to create value. There is a significant difference in the performance of AI-diversified companies and “pure-play” Bitcoin miners in 2024. Analysts pointed out that AI diversified companies such as Core Scientific and TeraWulf have achieved gains of 308% and 136% respectively this year, while Riot Platforms and CleanSpark have lost 34% and 17% respectively. They expect this trend to continue as “artificial intelligence changes the Bitcoin mining business model, making it more sustainable and less cyclical, bringing in a broader institutional investor base.”

Continuing with the AI ​​theme, Bernstein analysts expect closer integration with the crypto industry this year, and the intersection of AI and crypto is driving innovation on multiple fronts. Key developments include decentralized AI blockchains for computation, storage, and inference, as well as “proof-of- human” authentication services, AI-integrated crypto wallets, and tokenized AI agents.

Stablecoin market size reaches US$500 billion, SEC withdraws

cryptocurrency case, etc.

Bernstein analysts expect the industry to experience “unprecedented” regulatory tailwinds this year as pro-cryptocurrency governments come to power, including possible legislation on stablecoins and digital asset market structures, as well as regulations on “crypto-securities.” The definition is further clarified.

" The stablecoin bill will be considered a priority. Stablecoins further strengthen the U.S. dollar through the purchase of Treasury bonds and online distribution of digital dollars," Chhugani said. “The digital asset market structure facilitates legal clarity and licensing for exchanges, broker/dealers, including the legal status of non-custodial Defi protocols, excluding them from broker/dealer status. Finally, restrictions on crypto securities "

Such legislation in the United States may drive substantial growth in the global stablecoin market, which analysts predict will exceed $500 billion by 2025, more than double the 55% increase in 2024 to $200 billion. USD and above, as its applications extend beyond the cryptocurrency industry, especially in global cross-border B2B payments and cross-border remittance solutions.

In addition, analysts expect that the more pro-cryptocurrency SEC will withdraw or resolve existing cases with cryptocurrency companies and allow more private cryptocurrency companies to enter the public market, and IPOs will be further positive catalysts for the market. They also expect that cryptocurrency exchanges and platforms such as Robinhood will tokenize the stock market, enabling 24/7 liquid stock market trading based on blockchain technology, and that banks and asset managers will also launch more related to cryptocurrencies. related products.

Finally, Chhugani said that despite last year’s poor performance, Ethereum is expected to become the next “institutional darling” in 2025. Analysts say that 28% of Ethereum is pledged, 3% is absorbed by ETFs, and 7.5% is locked in smart contracts. Ethereum’s limited supply and utility as a fee payment and collateral asset for layer 1 and layer 2 chains making it attractive to traditional investors looking for intrinsic value.