2025 sees the crypto market embark on a new journey, with analysts at Bernstein Research envisioning an era they’ve dubbed the “Age of Infinity” for cryptocurrencies. In a note to clients on January 6, Gautam Chhugani, the company’s managing director, has forecasted that cryptocurrency will no longer be considered a niche invention, but instead, it will become a fundamental pillar in global finance.
Chhugani stated that we should no longer anticipate the ups and downs associated with ‘boom-bust’ cycles. Instead, it appears that cryptocurrencies have gained a stable presence in the corporate, banking, and institutional sectors.
Bitcoin started off the year in an upward trend, currently valued at approximately $99,200, representing a 6% increase since January 1, 2025. Analysts from Bernstein have maintained their aggressive prediction of Bitcoin reaching $200,000 by the end of 2025. This optimism mirrors President-elect Donald Trump’s pro-Bitcoin views, such as his intention to build a significant Bitcoin reserve.
Bernstein points out the growing corporate adoption of Bitcoin, predicting that by 2025, Bitcoin inflows into corporate treasuries could exceed $50 billion compared to $24 billion in 2020. Currently, Michael Saylor’s MicroStrategy leads this sector with more than 446,400 Bitcoins in its possession. Chhugani anticipates that smaller companies might follow MicroStrategy’s lead by adopting a Bitcoin-focused strategy for their treasury management.
Analysts anticipate a significant surge in investments into Bitcoin ETFs, with estimates suggesting over $70 billion could be invested by the end of this year â nearly double the amount recorded in 2024. Interestingly, spot Bitcoin ETFs have had a strong start in 2025, with a record net inflow of $908 million on January 3, marking the highest since November 21, 2024. These funds have already amassed a total inflow of approximately $35.9 billion within the past year.
Ethereum Poised for Growth
In the year 2025, Ethereum, represented by ETH and currently trading at $3,699, is being seen as the preferred choice among institutional investors, according to Bernstein. Despite a lackluster performance in the previous year, the appeal of Ethereum lies in its limited supply and versatile applications across Layer 1 and Layer 2 networks. The growing popularity of Ethereum-based ETFs, with a combined net inflow of $2.64 billion, is expected to continue.
Furthermore, Bernstein anticipates that an Exchange-Traded Fund (ETF) for Solana might be launched before the year ends.
Clear Regulations to Drive Stablecoin Market Surge
Moving beyond Bitcoin and Ethereum, the Infinity Age presents a wave of regulatory optimism. With a pro-cryptocurrency administration taking office in the U.S., it is anticipated that they will enact supportive legislation for stablecoins and digital asset markets. As per Bernstein’s analysis, a more crypto-friendly Securities and Exchange Commission (SEC) could potentially resolve outstanding issues with cryptocurrency companies, thereby enabling Initial Public Offerings (IPOs) and opening up new avenues for growth.
The clear regulations on this issue could lead to rapid expansion of the stablecoin market, with Chhugani forecasting that it might surpass $500 billion by the end of the year, nearly doubling its present value.
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2025-01-06 19:04