Bernstein experts have published 10 predictions for the crypto market for 2025. One of them is the growth of BTC to 200 thousand

January 6, 2025 by cryptobreak

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Grigory Poperechny

6 January 2025.

The previous year was a period of global popularisation for Bitcoin and cryptocurrencies in general, which are now on the radar of global banks, financial corporations and even nations. A key occasion was the emergence of spot ETFs based on digital assets in the US, which attracted tens of billions of dollars in net capital inflows. Against the backdrop of this success, analysts at the Bernstein firm have outlined what coin fans should expect from 2025.

Most experts agree that 2025 will be the final year for the current bullrun in crypto. Still, the peak of Bitcoin’s bullrun the year before last was in December 2017, while the last growth phase ended in November 2021.

Given the traditional duration of up and down cycles in the coin industry, it is easy to assume that a new long-term record for BTC will be set just in the next 10-12 months.

Bitcoin rate forecast

Previously, analysts Bernstein repeatedly stated that they bet on the growth of the first cryptocurrency on this bullrun to 200 thousand dollars. Moreover, they called such a benchmark conservative because of the situation in the world economy.

Still, the factor of inflation still has not disappeared anywhere and is relevant, while the public debt of the United States and other countries continues to increase. And since Bitcoin has a limited maximum supply, fixed inflation rates and global popularity, buying it certainly doesn’t seem like a bad idea.

Now, experts have revealed what else we can expect from the crypto sphere in the new year.

What will happen to cryptocurrency in 2025

Analysts began their forecast with the statement that the crypto industry is moving into the so-called “age of infinity”. We are talking about a long period that is accompanied by the constant evolution of the phenomenon and the growth of its popularity.

Eventually, the story will end with crypto no longer proving to be a point of contention, but a full-fledged component of the global financial system “for a new intelligent age.” Here’s Gautam Chhugani’s rejoinder on the matter, as quoted by The Block.

Count on fewer ups and downs. Still, cryptocurrencies have now established themselves on the radar of corporations, banks and large institutions, making it a component of the fabric of our financial system.

The growth of the cryptocurrency market

To make matters worse, the company’s experts still haven’t given up on the $200,000 goal for Bitcoin. According to them, the first cryptocurrency will be in demand because of the previous promise of the newly elected US President Donald Trump, who stated his desire to create a national BTC reserve.

Predictions on cryptocurrencies for the year

First of all, analysts expect the continued growth of BTC adoption by corporate giants, which could invest $50 billion in various crypto-based instruments. At the end of 2024, the figure was 24 billion.

MicroStrategy is likely to emerge as the leader among cryptocurrency buyers. They will be followed by Bitcoin miners who want to scale their own activities, as well as small and mid-cap corporations.

This afternoon, MicroStrategy founder Michael Saylor announced the company's purchase of 1,070 Bitcoins worth $101 million. The giant has thus amassed 447,470 coins with 27.97 billion invested.

MicroStrategy founder Michael Sailor

Another Bernstein prediction is for spot Bitcoin-ETFs to attract net inflows of more than $70 billion. That’s roughly double the 2024 total of $35 billion. The growth will be driven by heavy investment in exchange-traded funds by hedge funds, banks and wealth managers.

Bitcoin-based ETFs themselves will be increasingly recognised by national players and private banking platforms. And while Bitcoin along with Efirium will retain the lead here, there could be a launch of similar Solana-based instruments closer to the end of 2025.

Here’s Chhugani’s commentary on the market situation.

The announcement of a national Bitcoin reserve in the US would be the occasion for a global competition for other nations to buy BTC. Our projected BTC price of 200k does not account for demand from governments – we are only talking about the institutional and corporate level. As corporate vaults and Bitcoin-ETFs become an increasingly significant component of the cryptocurrency ownership structure, the prevalence of cryptocurrency will prove more sustainable. Accordingly, the longer BTC stays below the $100,000 line, the more actively it moves from the hands of traders and sellers to long-term investors, following the example of MicroStrategy and Bitcoin ETF share holders.

In 2025, miners will have to make more use of artificial intelligence. Still, at the end of 2024, the returns of Core Scientific and TeraWulf, which use AI diversification in crypto mining, were 308 per cent and 136 per cent respectively. At the same time, the performance of “pure” miners BTC Riot Platforms and CleanSpark went into the negative with the result of 34 and 17 per cent.

The presence of artificial intelligence will also be felt in the general sphere of cryptocurrencies, thanks to which the latter will become more and more innovative. In particular, AI-centric decentralised blockchains, AI agents for tokenisation and corresponding wallets are in mind.

US Congress

Analysts also expect large-scale changes in the field of coin regulation in the United States against the background of the change of the president and the composition of Congress. For example, we can expect the launch of a legislative framework on stablecoins and the structure of the digital asset market, as well as additional clarifications on the term “cryptocurrency securities”, which the current SEC chairman Gary Gensler liked to use.

Representative Bernstein continues.

The Stablecoin bill will be a priority because such tokens strengthen the position of the U.S. dollar through purchases of Treasury bonds and the popularisation of digital dollars on the internet. The digital asset market structure provides legal clarity and licensing for exchanges, brokers and dealers, including defining the legal status of non-custodial DeFi protocols and their exclusion from broker/dealer categorisation.

As a result, the market capitalisation of stablecoins could reach the $500 billion level. At the end of 2024, the figure reached the 200 billion mark for the first time.

Experts also count on a change in the leadership of the Securities Commission, which now will not create problems for the coin industry. Accordingly, many lawsuits against blockchain companies may be withdrawn.

The next point is the prospect of tokenisation of shares by companies like Robinhood, due to which blockchain-based securities will be traded around the clock.