Steno Research released a report predicting 2025 will be a historic year for cryptocurrencies. With Bitcoin (BTC) and Ethereum (ETH) at the forefront, the report highlights a combination of favorable regulatory changes, improving macroeconomic conditions, and growing institutional adoption as key drivers of this bullish outlook.

BTC and ETH: Record-Breaking Price Predictions

The report projects Bitcoin's price to exceed $150,000 and Ethereum’s to surpass $8,000 by 2025. These price targets stem from several interlinked factors:

• Regulatory Support: Governments and regulators are expected to adopt a more favorable stance on cryptocurrencies, providing clarity and encouraging investment.
• Post-Halving Momentum: Bitcoin's halving cycle, historically linked to price surges, is anticipated to fuel significant upward pressure on BTC prices.
• Macroeconomic Tailwinds: Declining interest rates and improved liquidity conditions are seen as creating a supportive environment for crypto assets.

Ethereum is projected to outperform Bitcoin, with the ETH/BTC ratio expected to rise to 0.06 from its current level of 0.035. This shift reflects Ethereum’s expanding role in decentralized applications (DApps) and the broader blockchain ecosystem.

Institutional Adoption: A Tipping Point

Steno Research forecasts a surge in institutional capital inflows, particularly through U.S.-based Bitcoin and Ethereum exchange-traded funds (ETFs). Net inflows for BTC ETFs are expected to reach $48 billion, while ETH ETFs could see inflows of $28.5 billion by 2025.

The growing appeal of ETFs underscores institutions’ increasing confidence in crypto as an asset class. Steno analysts believe this trend will further cement Bitcoin and Ethereum’s dominance in the market.

DApps and Altcoins: The Rise of a New Era

The report also sheds light on decentralized applications (DApps) and alternative cryptocurrencies (altcoins). Total value locked (TVL) in DApps is forecast to reach $300 billion in 2025, a significant leap from the $180 billion peak in 2021.

Key drivers for this growth include:

• Enhanced On-Chain Activity: Ethereum and other altcoins, such as Solana, are expected to benefit from increased on-chain transactions.
• Altcoin Season: Bitcoin’s market dominance is predicted to drop from 57% to 45%, paving the way for altcoins to gain prominence.

Steno attributes part of this shift to potential political developments, such as Donald Trump’s U.S. presidential victory. Analysts argue that Trump’s policies could spur on-chain activity, favoring Ethereum and Solana over Bitcoin.