Originally published on: December 13, 2024
As the cryptocurrency market continues its bull run, VanEck is forecasting a “medium-term peak” in the first quarter of 2025, followed by a surge to all-time highs by the end of the year. According to a recent blog post by the asset manager, Bitcoin (BTC) is expected to reach around $180,000, while Ethereum (ETH) could trade above $6,000. Additionally, prominent projects like Solana (SOL) and Sui (SUI) may exceed $500 and $10, respectively.
However, before hitting these impressive highs, VanEck anticipates a 30% retracement in BTC, with altcoins facing sharper declines of up to 60% during the summer as the market consolidates. Altcoins, which are digital assets other than Bitcoin, could see significant volatility in the coming months.
The asset manager also warns that sustained funding rates above 10% on BTC perpetual futures exchanges could indicate speculative excess, signaling a possible local top in the crypto market. Analysts like Ryan Lee from Bitget Research believe that BTC’s price could experience a 30% correction before resuming its bullish trajectory.
Looking ahead to 2025, VanEck predicts that the US will establish a Bitcoin strategic reserve and approve more crypto exchange-traded funds (ETFs), paving the way for increased institutional adoption of cryptocurrencies. With new SEC leadership expected, the approval of multiple new spot crypto ETPs is on the horizon. Ethereum ETPs are also anticipated to include staking, while both Ethereum and Bitcoin ETPs will allow in-kind transactions and redemptions.
In a separate development, Sygnum Bank stated that institutional adoption could trigger “demand shocks” in the coming year, potentially causing a spike in BTC’s spot price. And according to BlackRock, allocating up to 2% of a portfolio to BTC is considered reasonable for investors interested in holding the digital asset.
It’s clear that the cryptocurrency market is in for an eventful year ahead, with VanEck’s predictions painting an exciting picture of what’s to come in 2025. Stay informed and explore more articles like this by subscribing to the Markets Outlook newsletter, where critical insights are shared to help you spot investment opportunities, mitigate risks, and refine your trading strategies. Don’t miss out on the latest trends in the crypto space – subscribe now!