Investing.com — With the start of 2025, the crypto sector is entering what could be described as the “Age of Infinity,” a period of continued growth and mainstream consolidation, according to Bernstein analysts. Digital assets are becoming the mainstream of virtual currencies. It is an established and accepted part of the financial landscape and fits seamlessly into the evolving framework of the modern economy.
“We expect crypto and AI to coexist,” analysts led by Gautam Chughani said in a note. “Also, don’t expect too much of a boom-and-bust pattern. Cryptocurrencies are now attracting the attention of businesses, banks, and institutions, and are being built into the very fabric of the financial system.”
In his report, Bernstein highlighted 10 crypto predictions for 2025.
1) $200,000: Bernstein predicts that Bitcoin () will reach $200,000 by the end of 2025. This forecast is driven by institutional and corporate demand, not sovereign purchases.
“Our ‘Bitcoin to $200,000’ hypothesis is simply based on supply and demand,” the analyst noted.
Currently, 450 Bitcoins are mined every day, but corporate treasuries and ETFs have acquired 20 times that amount since the US presidential election. “That’s the demand,” Bernstein emphasizes.
Even though Bitcoin rose 43% during this period, analysts suggest it could have been even higher. Notably, 60% of Bitcoins have not moved in over a year. With holdings in ETFs and corporate bonds increasing (currently accounting for 11%), Bernstein said Bitcoin ownership has become “stickier” and Bitcoin has shifted from traders to MicroStrategy (NASDAQ:). We expect it to be transferred to long-term holders such as:
2) Corporate Bitcoin Treasury Demand: Corporate Treasury investment in Bitcoin is expected to exceed $50 billion, more than double its 2024 level. MicroStrategy is leading this trend and expanding its Bitcoin holdings through innovative funding mechanisms.
3) Increase in Bitcoin ETFs: According to Bernstein, institutional inflows into Bitcoin ETFs could exceed $70 billion by 2025, which is 8% of Bitcoin market capitalization. It is said to be equivalent to This surge reflects growing acceptance among hedge funds, banks, and asset managers.
4) Miners are moving to AI: Bitcoin miners are moving to AI and diversifying their operations into data centers to ensure long-term stability. Riot Platform (NASDAQ:) and Core Scientific Co., Ltd. (NASDAQ:) is at the forefront of this trend, and investments in AI infrastructure are expected to gain support from a broader range of institutions.
5) Regulatory changes: The US regulatory environment is expected to become more favorable with legislation clarifying the structure of digital assets and expanding CFTC oversight. Meanwhile, analysts expect the SEC to drop or settle cases against major cryptocurrency companies and protocols.
6) Stablecoins reach $500 billion: Stablecoin penetration is predicted to exceed $500 billion driven by cross-border B2B payments. Businesses are increasingly turning to stablecoins to take advantage of instant payment capabilities at low costs and increase efficiency.
7) Crypto IPO boom: Bernstein also expects a flurry of crypto-related IPOs this year as regulatory clarity encourages exchanges, wallets, and stablecoin companies to go public. Additionally, tokenized stock trading on public crypto rails is expected to gain momentum.
8) Financial institutions expand their offerings: Asset managers will expand their offerings in the coming months by offering custody services, structured OTC derivatives, and DeFi-specific offerings to meet growing customer demand for diversified crypto exposure. It is likely that various virtual currency products, such as funds, will be introduced.
9) Ethereum Redemption: Over the next 12 months, Bernstein analysts expect it to solidify its position as the second most valuable blockchain, driven by deflationary supply dynamics and the utility of decentralized finance. . The strength of ETH’s price movement reflects increased adoption and institutional interest.
10) The convergence of AI and crypto: Finally, the convergence of AI and crypto is driving new innovations in applications ranging from AI-authenticated crypto wallets to autonomous agents that use blockchain for payments and identity verification. It will create a field.
