Cryptocurrencies Bitcoin, Ethereum, and Solana are set for new all-time highs in 2025, according to a report by Bitwise.
Bitwise projects Bitcoin will trade above US$200,000 (A$321,880) this year, after it rose by 141.7% in 2024.
“The record-setting flows into bitcoin ETFs [exchange traded funds] sent bitcoin to new all-time highs in 2024. We don’t see that slowing down any time soon,” Bitwise said. “Combine that demand with the reduction in new supply thanks to the April 2024 halving, plus new buying from corporations and governments and… well, we’ve seen this play before.”
If the United States government establishes a bitcoin strategic reserve, Bitcoin could trade above US$500,000 this year, the report said. Bitcoin soared to a record high of US$107,000 in December after president-elect Donald Trump reiterated plans for a reserve.
Ethereum and Solana could reach US$7,000 and $750 respectively in 2025, Bitwise projected.
Bitwise also predicted the U.S. Department of Labor would relax its recommendations discouraging cryptocurrency investment options in 401(k) retirement plans this year, and that the number of countries holding bitcoin worldwide would double.
Several crypto companies are expected to launch initial public offerings this year, with the report predicting both crypto issuers like Circle and exchanges like Kraken could go public.
“Crypto prices are up, investor demand is growing, institutional adoption is surging, blockchain technology has gone mainstream, the macro environment is favourable, and — perhaps most importantly — the political environment has warmed. That’s a recipe for many of the industry’s big players to go public,” according to Bitwise.
Bitcoin exchange traded funds could surpass last year’s total inflow of US$33.6 billion, according to the report, and Coinbase is set to become the most valuable brokerage globally.