Will Cryptocurrency Open an “Infinite Era”? Bernstein: BTC price reaches US$200,000, ETH will become the new favorite of institutions

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ABMedia
01-07
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As 2025 approaches, research firm Bernstein has made several trend predictions for the crypto market, claiming that the market will enter the so-called "Infinite Era", symbolizing an era of continuous evolution and widespread adoption, where Bit will become an important part of the global financial system.

(Dragonfly Partner Haseeb: 2025 Crypto Trend Predictions, Proposing Six Key Areas)

Crypto Outlook for 2025: Entering the Infinite Era

Bernstein analyst Gautam Chhugani's prediction indicates that as the crypto industry enters the "Infinite Era" he refers to, the market is moving towards broader adoption and maturity. The joint push of Bit, ETH, AI, and Stablecoin will have a profound impact on the global financial system:

The "Infinite Era" is a long-term process of continuous evolution and widespread acceptance, where Bit will no longer be a controversial term, but a part of the financial system designed for the new era.

He added that "as Bit has firmly entered the radar of enterprises, banks, and institutions, and is gradually integrated into our financial system, its volatility patterns will continue to weaken."

BTC Price to Reach $200,000

Bernstein first predicts that the price of each Bit will reach $200,000 by the end of 2025. This target is driven by the adoption trends of Bit by sovereign nations, financial institutions, and various companies, including the Bit reserve strategy commitment of the incoming President Trump, and the policies of companies like MicroStrategy:

It is expected that corporate Bit inflows will reach $50 billion in 2025, a significant increase from $24 billion in 2024, and MicroStrategy and other Bit miners may continue to lead the demand.

Thriving Development of Crypto ETFs

Additionally, he believes that the net inflows of the US spot Bit ETF will exceed $70 billion in 2025, more than doubling from $35 billion in 2024, primarily driven by the accelerated adoption by hedge funds and banks.

The weekly flow of the US spot Bit ETF was driven by a surge in prices in October, leading to a large influx of funds (SoSoValue)

Bit and ETH remain the focus of the ETF market, not to mention the potential launch of a Solana ETF by the end of the year.

(2024 was a Bumper Year for ETFs, 2025 Will See More Crypto ETFs Launched)

Integration of BTC Mining and AI Technology

With the rapid development of AI technology, Bernstein believes that Bit miners need to integrate AI technology into their business models to enhance the sustainability of the industry and reduce cyclical volatility:

Data from 2024 shows that miners who have integrated AI technology (Core Scientific and TeraWulf) have outperformed those who solely focus on mining (Riot Platforms and CleanSpark), and this trend is expected to continue in 2025.

(Bitwise CEO Predicts 2025 Trends, AI and Tokenization to Reshape Capital Markets?)

Innovative Fusion of Cryptocurrency and AI

Similarly surrounding AI, Bernstein predicts that the combination of this technology and cryptocurrency will bring a series of innovations by 2025, including decentralized AI Blockchain, "identity verification" services, AI-integrated cryptocurrency wallets, and AI agents, driving a new wave of technological applications.

(a16z's 2025 Technology Trend Forecast: The Future of AI, Blockchain, and Digital Identity)

Stablecoin Market Size to Exceed $500 Billion

Next, the stablecoin market size is expected to exceed $500 billion by 2025, more than doubling from $200 billion in 2024:

Stablecoins will become the primary solution for cross-border payments and remittances, and may receive support from potential stablecoin regulations.

(Circle CEO Allaire Interview: Stablecoins Drive Mainstream Adoption of Crypto, Hong Kong as Circle's Springboard to Asia)

Positive Impact of a Friendly Regulatory Environment

The new government may drive significant progress in cryptocurrency regulation, including legislation for the stablecoin and digital asset markets. Bernstein expects the SEC to withdraw or settle existing cases with crypto companies and facilitate more IPOs of private crypto companies.

(USDT Market Cap Shrinks Due to MiCA Implementation, Tether Chooses to Invest Rather Than Sacrifice Yield to Indirectly Participate in the EU Market)

Ethereum to Become the New Darling of Institutions

Finally, despite its disappointing performance in 2024, Bernstein predicts that Ethereum will become the "new darling" of institutional investors in 2025:

The limited supply of Ether, its utility as a fee payment and collateral asset, and its critical role in L1 and L2 applications make it attractive to traditional investors.

(Ethereum's "Golden Decade" Arrives in 2025? The Community Offers Revolutionary Predictions: ETH Price May Reach $15,000)

Risk Warning

Cryptocurrency investment is highly risky, and its price may fluctuate dramatically. You may lose your entire principal. Please carefully evaluate the risks.

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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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