Originally published on: December 13, 2024
A recent blog post by VanEck suggests that the cryptocurrency bull market is on track to reach a “medium-term peak” in the first quarter of 2025, with the potential for all-time highs later in the year. According to the post authored by Matthew Sigel, head of digital asset research at VanEck, Bitcoin (BTC) could reach $180,000 while Ethereum (ETH) may surpass $6,000 by the end of the year. Additionally, other projects like Solana (SOL) and Sui (SUI) could see significant growth, potentially exceeding $500 and $10, respectively.
However, before reaching these peak levels, VanEck anticipates a temporary correction in the crypto market, with a 30% retracement in BTC and even sharper declines of up to 60% in altcoins. This consolidation phase is expected to occur during the summer months.
VanEck also suggests that sustained funding rates above 10% on BTC perpetual futures exchanges could indicate excessive speculation, signaling a potential local market top. Additionally, the asset manager foresees the adoption of a Bitcoin strategic reserve in the US in 2025, along with increased approval of crypto exchange-traded funds (ETFs) by regulators, further driving institutional adoption of cryptocurrencies.
Analysts like Ryan Lee from Bitget Research echo similar sentiments, predicting a 30% correction in BTC before a continued bullish trend. Historical data trends support the possibility of this correction, especially as US markets tend to correct following presidential inaugurations, with President-elect Donald Trump set to take office on January 20, 2025.
As the crypto market undergoes shifts and prepares for potential growth, institutional investors are increasingly considering allocating a portion of their portfolios to crypto assets. Sygnum Bank and BlackRock have both acknowledged the potential for significant gains in the crypto market, with institutions showing interest in diversifying their portfolios with digital assets.
In summary, 2025 is shaping up to be a pivotal year for the cryptocurrency market, with peaks, corrections, and institutional adoption all in the forecast. Stay tuned for more developments as the market continues to evolve.
