Bitwise, a prominent asset management firm, has set bold price targets for Bitcoin, Ethereum, and Solana for 2025.
The firm forecasts that Bitcoin will soar to $200,000, Ethereum will reach $7,000, and Solana could hit $750.
These predictions suggest that all three cryptocurrencies will surpass their all-time highs (ATHs) in the coming year.
Bitwise attributes these optimistic forecasts to several factors, including the rise of Bitcoin ETFs, the growth of Ethereum’s Layer 2 ecosystems, and increasing developments in Solana’s blockchain.
Bitcoin Faces Supply Shock as Demand Grows
Bitwise’s Chief Investment Officer, Matt Hougan, and Head of Research, Ryan Rasmussen, believe Bitcoin is poised for significant growth in 2025.
They attribute much of this potential surge to the rising popularity of Bitcoin exchange-traded funds (ETFs).
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The launch of these ETFs has already triggered record inflows into Bitcoin, pushing its price to new ATHs this year.
Bitwise expects this trend to continue, with more institutional money flowing into Bitcoin, further driving its price higher.
Additionally, Hougan mentions there are inflows from ETFs and that you are experiencing supply shock, too.
As more corporations and governments adopt Bitcoin, the available supply of coins might shrink.
Pushed by this growing demand and resulting lower supply, Bitcoin’s price may rise to $200,000 in 2025.
However, the firm believes that Bitcoin will gain, not lose, its stature as a store of value and will be an important player in the overall financial market amidst increasing institutional adoption.
Ethereum Price Could Hit $7,000 in 2025
Bitwise expects a big narrative shift for Ethereum in 2025. Although Ethereum has underperformed other cryptocurrencies this year, the firm believes it will see a resurgence next year.
This shift is driven by fast-growing Layer 2 blockchains such as Base and Starknet. In 2025, we expect the activity of these platforms, which boost Ethereum’s scalability and transaction speed, to accelerate.
According to Bitwise, expected Spot Ethereum ETFs are one of the key catalysts that should keep Ethereum’s price hiked.
If the flows into these funds materialize as predicted, the firm believes the price of Ethereum could reach $7,000.
Growing stablecoins and assets tokenized on the Ethereum network will add to its value.
Bitwise believes this will secure Ethereum’s place as a leading blockchain, which will help boost its price growth in 2025.
Solana’s Improved Technology Fuels Price Growth
Another cryptocurrency that Bitwise believes will hit new ATHs in 2025 is Solana, one of last year’s standout performers.
Solana’s price could rise to $750, Bitwise thinks, on the back of a change in the types of projects building on it.
Solana has been grabbing headlines for its meme coin ecosystem, but Bitwise says it sees many more serious and potentially innovative projects moving into the network.
The influx of new projects alongside Solana’s continued dominance in the meme coin space will likely also contribute to its price growth.
Bitwise also noted Solana’s technology has improved, making it a more attractive option for developers and businesses.
The firm believes that Solana’s ecosystem will only grow larger and more influential. This increasing momentum will support the price rise to $750 in 2025.
Crypto IPO Boom Expected with Five Unicorns
Beyond the crypto market, Bitwise also made a few predictions for the broader crypto ecosystem in 2025.
In 2025, Bitcoin ETFs will attract even more investment than in 2024, says the firm. Also, Bitwise predicts Coinbase will become the world’s most valuable brokerage, outstripping Charles Schwab.
On top of that, the firm also forecasts a crypto IPO boom, with at least five major crypto unicorns going public in the U.S.
Also predicted is a concomitant easing of regulations on cryptocurrency use in retirement plans by many in the United States.
The firm thinks the Department of Labour will take back its stance against crypto in 401(K) plans, which would enable billions of dollars to flow into crypto assets.
According to Bitwise, U.S. regulators promulgating stablecoin legislation will result in the stablecoin market doubling in value to $400 billion.
Source: https://www.thecoinrepublic.com/2024/12/11/bitcoin-ethereum-solana-to-see-new-aths-2025-price-prediction/