Originally published on: December 13, 2024
VanEck is anticipating a significant development in the cryptocurrency market in 2025. According to the asset manager’s recent blog post, the cryptocurrency bull market is likely to reach a “medium-term peak” in the first quarter of 2025 before skyrocketing to all-time highs by the end of the year.
Head of digital asset research at VanEck, Matthew Sigel, shared insights into the projected values of top cryptocurrencies at the cycle’s apex. Bitcoin (BTC) is expected to reach around $180,000, while Ethereum (ETH) could trade above $6,000. Additionally, other prominent projects like Solana (SOL) and Sui (SUI) are also predicted to surpass $500 and $10, respectively.
Before hitting these peak levels, VanEck foresees a 30% retracement in BTC, with altcoins potentially facing even sharper declines of up to 60% during the market consolidation in the summer.
Altcoins, referring to digital assets other than Bitcoin, could experience significant fluctuations in value. VanEck suggests that sustained funding rates above 10% on BTC perpetual futures exchanges might indicate speculative excess, signaling a possible local top in the crypto market.
Analysts like Ryan Lee from Bitget Research also anticipate a similar trajectory for BTC’s price, projecting a 30% correction before the bullish trend resumes.
Looking ahead to 2025, VanEck predicts that the US will establish a Bitcoin strategic reserve and approve more crypto exchange-traded funds (ETFs), fostering institutional crypto adoption. With new SEC leadership, multiple new spot crypto ETPs are expected to be greenlit, including Ethereum ETPs with staking features.
Institutional adoption could trigger “demand shocks” next year, as noted by Sygnum Bank, potentially leading to a spike in BTC’s spot price. Even BlackRock, the world’s largest asset manager, considers up to a 2% portfolio allocation in BTC as reasonable for investors.
With these exciting developments on the horizon, it’s clear that the crypto market is poised for significant growth and transformation in the coming years. Stay tuned for more updates on the evolving crypto landscape.
