Last year was remarkable for cryptocurrency. Bitcoin (CRYPTO: BTC) broke the $100,000 barrier, the intersection of artificial intelligence (AI) and blockchain technology took center stage, and altcoins surged to new heights. But with 2024 in the past, a new question arises: What could the new year have in store for the ever-evolving world of crypto?
While it’s all speculation, guessing what’s next is half the fun. Here are my three predictions for crypto in 2025.
Bitcoin’s stunning rally in 2024 cemented its place as the world’s most valuable cryptocurrency, but I believe it’s far from done. My first prediction is Bitcoin will hit $200,000 in 2025. Two major factors support this bold target: the halving effect and institutional demand through exchange-traded funds (ETFs).
The Bitcoin halving, which occurred in April 2024, cut its supply growth rate in half. Taking place roughly every four years, this supply shock historically serves as the foundation for Bitcoin’s strongest bull runs, and I expect 2025 to be no different. Halving events consistently lead to a surge in demand as scarcity increases, pushing Bitcoin’s price higher.
Additionally, the approval of spot Bitcoin ETFs in 2024 has already opened the door for a broader range of investors. These ETFs make it easier than ever for retail investors to add Bitcoin exposure to 401(k)s and individual retirement accounts (IRAs), as well as for institutional investors managing pension funds, hedge funds, and endowments, all without the need to navigate the complexities of crypto wallets and exchanges. Data indicates that these ETFs are accumulating Bitcoin at an unprecedented pace, driving sustained buying pressure.
What’s more, if President-elect Donald Trump follows through on his proposal to create a strategic Bitcoin reserve for the U.S., the price target for Bitcoin could rise even higher. While the specifics of such a plan remain unclear, the mere prospect of national adoption is a game changer for Bitcoin’s trajectory.
Ah, alt season, everyone’s favorite time in the crypto cycle. This is the period when capital flows from Bitcoin to smaller cryptocurrencies, sending altcoin prices soaring. Historically, alt season occurs in the year after a Bitcoin halving, and 2025 fits that timeline perfectly.
But my prediction goes beyond simply stating that alt season will happen. I believe 2025 will deliver two key surprises.
First, alt season will arrive later than most people expect. Why? Liquidity. Altcoins thrive when liquidity floods the market, but the current macroeconomic environment suggests a more cautious pace. While anticipated interest rate cuts from central banks should help inject some liquidity, the Federal Reserve is still tightening the money supply, and the dollar continues to climb to new highs. While crypto can still rise in these scenarios, these factors usually lead to Bitcoin attracting the bulk of capital, leaving altcoins behind.
