The Block Research predicts bullish BTC, stablecoin boom, rise of prediction markets

Analysts at The Block Research have released their outlook for the cryptocurrency market this year, highlighting several key trends. A consensus view anticipates Bitcoin (BTC) will maintain a market dominance of over 50%, supported by continued net inflows into spot ETFs. While some analysts expect a sideways market in the first half of the year followed by a bullish turn in the second half, others suggest geopolitical risks may limit the potential for new all-time highs. The market is also expected to see sustained weakness in altcoins, with only projects demonstrating real-world use cases likely to survive. The stablecoin sector is poised for explosive growth, with some predicting total supply could surpass $500 billion amid wider adoption for corporate payments. This growth may be accompanied by a decline in USDT's market share as USDC emerges as a key neutral bridging asset. Prediction markets are forecast to become one of the year's strongest narratives, alongside the growth of perpetual decentralized exchanges (perp DEXs), interoperability solutions, and real-world assets (RWAs). In contrast, the NFT market is expected to remain stagnant. Analysts also warned of potential selling pressure from companies holding digital asset reserves, noting that Bitmain may begin selling its ETH holdings in the first quarter. This could coincide with declining venture capital valuations and a broader market correction driven by large-scale token unlocks.