As a seasoned crypto investor with a decade of experience under my belt, I find the predictions made by Bitwise for 2025 particularly intriguing. The potential IPOs of major players like Circle, Kraken, Anchorage Digital, Chainalysis, and Figure are certainly noteworthy events that could significantly reshape the crypto landscape.
According to predictions by cryptocurrency ETF issuer Bitwise, it’s likely that at least five major players in the crypto market – such as stablecoin provider Circle and exchange Kraken – will make their public debuts by 2025.
According to a report published on December 10th, titled “10 Crypto Predictions for 2025,” by Bitwise’s Matt Hougan, the investment chief, and Ryan Rasmussen, the research head, it is anticipated that Anchorage Digital, Chainalysis, Figure, and an additional crypto bank will be the four companies planning to launch an Initial Public Offering (IPO) next year. This means they will offer shares to the public for the first time.
Increased interest from investors, acceptance by institutions, positive economic conditions, and more supportive political landscapes significantly contributed to the prediction that 2025 would be known as “The Year of the Cryptocurrency Initial Public Offering.
Here are some of the other predictions that Bitwise’s Hougan and Rasmussen made for next year.
BTC, ETH and SOL to hit new highs, Bitcoin tops gold in 2029
According to Hougan and Rasmussen’s prediction, the price of Bitcoin (BTC) might reach $200,000 or higher by the year 2025. They also speculate that its market value could potentially surpass gold’s current $18 trillion market cap by the year 2029.
Should the U.S. government heed Senator Cynthia Lummis’ proposal to amass a substantial Bitcoin reserve by purchasing over a million Bitcoins over the course of five years, I, as an analyst, foresee potential price surges. This could potentially propel the value of Bitcoin to $500,000 or even beyond, given such significant institutional investment.
Bitcoin might surpass gold’s value without a U.S. reserve for Bitcoin, the experts suggested, and while having a reserve could speed up this process, it is not strictly necessary.
In the upcoming years, Bitwise predicts that the value of Ether (ETH) could surge to around $7,000 by 2025. This forecast is driven by increased activity on Ethereum layer 2 solutions, a rise in Ether exchange-traded funds (ETFs), and significant growth in stablecoins and tokenized projects.
Hougan and Rasmussen anticipate that significant projects will be initiated on the Solana blockchain, potentially driving up its value to around $750 – a potential rise of approximately 250% from its current market price of $215.
Coinbase to be most valuable brokerage, enter S&P 500, MicroStrategy joins Nasdaq-100
In simpler terms, analysts forecast that Coinbase stock could reach around $700 by 2025, surpassing Charles Schwab in value to become the leading brokerage platform. This potential growth might even secure a spot for Coinbase within the S&P 500 index.
Coinbase is not only a brokerage, as the Bitwise team pointed out, and they foresee significant growth in Coinbase’s earnings from their stablecoin, staking, and custodial services, along with their income from Ethereum layer 2, known as Base.
As an analyst, I foresee a potential development where Coinbase might find itself part of the S&P 500 and MicroStrategy could join the Nasdaq-100 index during their upcoming rebalancing phases.
Approximately $15 billion of S&P 500 fund managers’ assets would need to be allocated towards Coinbase shares if they wanted to match the index, while MicroStrategy’s inclusion in the Nasdaq-100 could have a substantial, though less pronounced, effect on its share price, according to Bitwise.
Bitcoin ETFs attract more Wall Street flows as RWA market hits $50B
This year, analyst predictions for the net inflows of U.S. spot Bitcoin ETFs were roughly between $5 billion and $15 billion. However, these ETFs have surpassed the upper limit of that range, accumulating a staggering $33.6 billion this year instead.
According to Hougan and Rasmussen, they predict that the inflows into Bitcoin in 2025 will surpass what we’ve seen so far. They explained that institutional investors are gradually increasing their Bitcoin holdings to around 3%, a strategy referred to as “laddering up.” Furthermore, they mentioned that major wirehouses will start offering Bitcoin services by the year 2025.
“The largest wirehouses in the world — from Morgan Stanley and Merrill Lynch to Bank of America and Wells Fargo—have yet to unleash their army of wealth managers, who have largely been prevented from accessing the products. We believe that will change in 2025, and the trillions of dollars these firms manage will start flowing into Bitcoin ETFs.”
As a crypto investor, I’ve been told that just as gold ETFs experienced continuous net inflow increases over five years – from $2.6 billion in year one to $28.9 billion in year five – it’s anticipated that spot Bitcoin ETF inflows will follow a similar upward trend.
The value of tokenized real-world assets is expected to surge from approximately $13 billion to a staggering $50 billion by 2025, as stated by Bitwise. This projection underscores the advantages of immediate settlement, constant 24/7/365 liquidity, and cost reduction compared to traditional securitization methods.
According to both parties, Larry Fink, the CEO of BlackRock who is a strong advocate for tokenization, believes that the future of financial markets lies in the tokenization of securities.
AI agents will spearhead memecoin mania
The power of AI in shaping memecoins became evident when an AI chatbot named Truth Terminal endorsed the relatively unknown memecoin GOAT. As a result, the value of this coin skyrocketed to a market capitalization of $1.3 billion, according to Bitwise’s assessment.
“[This shows] how much potential there is when you mix AI with the wild world of memecoins.”
Bitwise anticipates that the market for stablecoins could potentially double to reach an impressive $400 billion, fueled in part by the anticipated passage of long-overdue stablecoin legislation in the United States.
They also anticipate that the U.S. Department of Labor might soften its stance on cryptocurrency within 401(k) plans, potentially providing a new route for vast amounts of money to enter the market.
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2024-12-11 06:48