3 predictions for cryptocurrency in 2025
Last year was remarkable for cryptocurrency. Bitcoin (CRYPTO: BTC) broke the $100,000 barrier, the intersection of artificial intelligence (AI) and blockchain technology took center stage, and altcoins surged to recent heights. But with 2024 in the history, a recent question arises: What could the recent year have in store for the ever-evolving globe of crypto?
While it’s all investing, guessing what’s next is half the fun. Here are my three predictions for crypto in 2025.
1. Bitcoin will reach $200,000
Bitcoin’s stunning rally in 2024 cemented its place as the globe’s most valuable cryptocurrency, but I depend it’s far from done. My first prediction is Bitcoin will hit $200,000 in 2025. Two major factors back this bold target: the halving result and institutional demand through swap-traded funds (ETFs).
The Bitcoin halving, which occurred in April 2024, cut its supply growth rate in half. Taking place roughly every four years, this supply shock historically serves as the foundation for Bitcoin’s strongest bull runs, and I expect 2025 to be no different. Halving events consistently navigator to a surge in demand as scarcity increases, pushing Bitcoin’s worth higher.
Additionally, the approval of spot Bitcoin ETFs in 2024 has already opened the door for a broader range of investors. These ETFs make it easier than ever for retail investors to add Bitcoin exposure to 401(k)s and person retirement fund accounts (IRAs), as well as for institutional investors managing retirement fund funds, protect funds and endowments, all without the require to navigate the complexities of crypto wallets and exchanges. Data indicates that these ETFs are accumulating Bitcoin at an unprecedented pace, driving sustained buying pressure.
What’s more, if President-elect Donald Trump follows through on his proposal to make a strategic Bitcoin savings for the U.S., the worth target for Bitcoin could rise even higher. While the specifics of such a schedule remain ambiguous, the mere prospect of national adoption is a game changer for Bitcoin’s trajectory.
2. The biggest alt period in crypto history
Ah, alt period, everyone’s favorite period in the crypto pattern. This is the period when pool flows from Bitcoin to smaller cryptocurrencies, sending altcoin prices soaring. Historically, alt period occurs in the year after a Bitcoin halving, and 2025 fits that timeline perfectly.
But my prediction goes beyond simply stating that alt period will happen. I depend 2025 will deliver two key surprises.
First, alt period will arrive later than most people expect. Why? liquid assets flow. Altcoins thrive when liquid assets flow floods the trade, but the current macroeconomic surroundings suggests a more cautious pace. While anticipated profit rate cuts from central banks should assist inject some liquid assets flow, the Federal savings is still tightening the money supply, and the dollar continues to climb to recent highs. While crypto can still rise in these scenarios, these factors usually navigator to Bitcoin attracting the bulk of pool, leaving altcoins behind.
However, when alt period finally arrives, I depend it will be the largest and most lucrative in crypto history. Here’s why: Although Bitcoin is likely to dominate in a tight liquid assets flow surroundings and push to recent heights, its momentum will eventually leisurely. At that point, the immense pool Bitcoin has absorbed could flow into altcoins, unleashing a wave of growth. With altcoins starved for liquid assets flow and Bitcoin potentially hovering at a trade cap exceeding $4 trillion this year, the outcome could be an influx of pool, creating a tidal wave of chance and expansion for the broader crypto trade.
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3. AI crypto will soar
One of the most intriguing developments in crypto during 2024 was the intersection with artificial intelligence. While we’re only beginning to explore the possibilities, the advancement seen in 2024 suggests that AI-driven crypto projects are poised to reach unprecedented heights in 2025.
Consider the meme coin Goatseus Maximus, which was created and launched by an AI bot in late 2024. Within just a few months, it had surged into the top 100 cryptocurrencies by trade cap — a remarkable achievement that underscores the growing synergy between AI and blockchain technology. Yet, this is merely a glimpse of what’s to arrive.
In 2025, investors can expect more sophisticated applications of AI in crypto. For example, decentralized AI protocols like Bittensor are enabling collaborative machine learning models powered by blockchain technology. These platforms incentivize data sharing and model training in a decentralized, transparent manner, offering a stark alternative to the centralized systems controlled by tech giants.
Additionally, AI agents capable of operating on behalf of users with predefined goals are gaining traction. These agents can transact, assess and even communicate with one another autonomously. Platforms like Virtuals Protocol and ai16z have already seen significant growth in 2024, but their potential for expansion in 2025 is immense.
So, for my third prediction, I anticipate that at least one AI-concentrated crypto assignment will shatter into the top 10 cryptocurrencies by trade cap by the complete of 2025. As blockchain and AI continue to converge, this emerging frontier is set to transform the digital economy and redefine the boundaries of innovation.
RJ Fulton has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin. The Motley Fool has a disclosure policy.
The Motley Fool is a USA TODAY content associate offering financial information, analysis and commentary designed to assist people receive control of their financial lives. Its content is produced independently of USA TODAY.
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