The crypto market has started 2024 with mixed signals. Among them, Bitcoin is leading other cryptocurrencies after the launch of the Bitcoin ETF spot. However, the rest of the year appears rather gloomy until Q4.
When Bitcoin reaches a new All-Time-High (ATH), many altcoins also hit their peaks. The question now is what investors can expect in 2025?
Let's analyze the top 5 coins and their outlook for the next 12 months.
BTC had a wonderful year, setting multiple new ATHs and making history by surpassing $100,000. Overall, BTC price increased 123% in 2024.
2025 is also expected to see similar price appreciation, as the regulatory outlook seems to be turning favorable, with US President Donald Trump, who is supportive of cryptocurrencies, set to take office in January. In an interview, Juan Pellicer - Senior Research Analyst at IntoTheBlock, discussed the potential of BTC.
"The outlook for BTC in 2025 looks very strong, supported by the recent breakthrough above $100,000. Consolidation at these levels, along with increasing institutional adoption and its proven track record as an inflation hedge, suggests continued upward momentum. If macroeconomic conditions remain favorable, we could see BTC set new price highs as it becomes further integrated into traditional financial investment portfolios," Pellicer said.
The short-term target for BTC is $120,000. This can only happen if BTC holds the $100,000 support level. If not, it may continue to slide down to the current support level of $89,800.
Unlike BTC, Ethereum (ETH) did not impress investors, only increasing 40% since the start of the year. ETH has struggled around the $4,000 mark for some time, and this price level is the biggest resistance.
This week also marked the largest drop for the top altcoin by market cap, declining 10% to $3,402. However, the launch of the Ethereum ETF spot could be a turning point for Ethereum and may propel this altcoin further in 2025.
"While institutional adoption of Ethereum has been slower than expected, the total ETH held in ETF addresses has increased significantly since November. Going forward, the potential for increased institutional participation through spot ETFs, combined with the growing enterprise adoption of Ethereum-based solutions, points to significant upside potential for ETH," Pellicer noted.
The current major target for ETH price is to flip the $4,000 level into support to move forward. This will ensure the $3,419 level acts as the first support floor. Otherwise, there is a risk of the price slipping below $3,000.
Solana (SOL) had an impressive year, outperforming Ethereum in performance. However, this is not surprising. With strong institutional preference, this altcoin is expected to not only maintain its 79% growth this year but also achieve more prominent milestones in the future.
Overcoming the consolidation levels of $202 and $128 is a major challenge for SOL, and maintaining above these levels is a key determinant of its continued uptrend. However, at the time of writing, SOL has pulled back, trading at $185.
Nevertheless, Solana still has opportunities thanks to its strong fundamentals and emerging use cases.
"Institutional demand seems to be expanding beyond just BTC. Larger blockchains are likely to attract more institutional attention, driven by the ability to accommodate new ETFs and clearer regulatory frameworks... This focus on infrastructure and applications development could create a more balanced market where multiple assets thrive alongside BTC," Pellicer said.
The current target for SOL price is to ensure the $202 support level, as only then can it form a new ATH above $265. But if the "Ethereum killer" falls into consolidation, 2025 could be gloomy for SOL holders.
Although XRP did not have a stellar year, it had an impressive Q4. In the final quarter, XRP surged from $0.49 to a yearly high of $2.9, before retreating to the current $2.23. This strong rally has pushed its YTD growth to 237%.
Similar to BTC, XRP also has the potential for strong growth in 2025 due to the recent launch of the RLUSD stablecoin.
"The trajectory of XRP is particularly interesting given recent developments. While the SEC's victory is an important catalyst, the launch of the RLUSD stablecoin and ongoing developments on the XRPL chain provide new growth drivers. The appointment of a crypto-friendly SEC Chair could further solidify XRP's position by providing clearer regulatory guidance for its use in cross-border payments and institutional adoption. This regulatory clarity, combined with technical developments, could drive sustainable price appreciation," Pellicer noted.
This positive boost could push XRP price above the $3 mark, supported by strong demand from new buyers. Institutions will also play a key role in driving demand, helping to keep this altcoin above $2.
Cardano (ADA) recorded one of the most disappointing price increases among the top altcoins, growing only 35% in 12 months. This week, a 14% drop has erased a portion of the gains recorded in Q4, pushing this altcoin down to $0.91.
The limited growth momentum has increased concerns about whether Cardano can continue to be among the top 10 cryptocurrencies. Currently ranked 9th, ADA faces threats from chains like Tron (TRX) and Avalanche (AVAX). However, Pellicer is more optimistic about the prospects of this third-generation cryptocurrency.
"Although ADA's performance has not been very impressive in the current bull cycle, its potential should not be underestimated. The key to maintaining a top 10 position lies in successfully expanding the ecosystem and increasing utility. This platform needs to demonstrate specific use cases and accelerate the deployment of dApps".
The focus should be on attracting developers and projects that can leverage Cardano's technical advantages. Pellicer shares that if successful in this effort, ADA could regain attention and see its price rise in 2025, although this will require significant development milestones and metrics to assess user adoption.
This bright outlook can only become a reality if ADA's price can reclaim the critical support level of $1 and conquer the $1.19 mark. However, to go further, ADA needs to attract strong investor interest along with breakthroughs in development from the team behind the project.
Disclaimer: This article is for informational purposes only and not investment advice. Investors should do their own research before making decisions. We are not responsible for your investment decisions.
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