Originally published on: December 13, 2024
VanEck, a leading asset manager, has released its predictions for the cryptocurrency market in 2025, forecasting a significant correction in the first quarter of the year before reaching all-time highs by the end of 2025. According to their analysis, Bitcoin (BTC) could reach $180,000 and Ethereum (ETH) may trade above $6,000 at the peak of the cycle.
In addition to these forecasts, VanEck also anticipates other top projects like Solana (SOL) and Sui (SUI) to surpass $500 and $10, respectively. However, they expect a 30% retracement in BTC and even sharper declines in altcoins during the summer as the market consolidates.
Altcoins, which are digital assets besides Bitcoin, are expected to face corrections of up to 60%. VanEck suggests that sustained funding rates above 10% on BTC perpetual futures exchanges could indicate speculative excess, signaling that the market has reached a local top.
These predictions align with the analysis of other experts in the industry. Ryan Lee, chief analyst at Bitget Research, believes that BTC’s price could drop by 30% before continuing its bullish trend. Historical trends and the upcoming presidential inauguration in the United States contribute to this forecast.
Looking ahead to 2025, VanEck envisions the US adopting a Bitcoin strategic reserve and regulators approving more crypto exchange-traded funds (ETFs), which could accelerate institutional adoption of cryptocurrencies. With new SEC leadership, VanEck anticipates the approval of multiple new spot crypto ETPs, including those focused on Ethereum with staking capabilities.
Institutional adoption of cryptocurrencies is expected to trigger “demand shocks” in the market, as highlighted by Sygnum Bank, leading to potential spikes in BTC’s spot price. BlackRock, the world’s largest asset manager, has also commented on the increasing acceptance of BTC, suggesting that a portfolio allocation of up to 2% is reasonable for investors.
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