Markets Daily Crypto Roundup: Crypto Update | Will BTC, ETH and SOL Hit New All Time Highs in 2025?

Release Date: December 11, 2024 | Host: Jen Senasi | Source: CoinDesk

In the December 11, 2024 episode of Markets Daily Crypto Roundup, hosted by Jen Senasi, listeners are treated to an in-depth analysis of the cryptocurrency landscape with a forward-looking perspective on what 2025 may hold. Drawing insights from Bitwise’s recently released top 10 predictions for the upcoming year, the episode delves into significant forecasts, emerging trends, and strategic developments poised to shape the crypto markets.

1. Bitwise’s Top Predictions for 2025

Jen Senasi kicks off the discussion by highlighting that Bitwise, a prominent asset management firm specializing in digital assets, has identified five out of their top ten predictions that will be explored in detail during the episode. Bitwise’s Chief Investment Officer Matt Hogan and Head of Research Ryan Rasmussen, both previous guests on the show, provide the authoritative insights behind these forecasts.

a. All-Time Highs for Bitcoin, Ethereum, and Solana

One of the standout predictions from Bitwise is the anticipation that three major cryptocurrencies—Bitcoin (BTC), Ethereum (ETH), and Solana (SOL)—are set to achieve new all-time highs in 2025.

• Bitcoin: Projected to reach $200,000.
• Ethereum: Expected to climb to $7,000.
• Solana: Predicted to surge to $750.

Matt Hogan emphasizes the impact of continued institutional investment and broader market adoption as key drivers for these price milestones. He remarks, “Bitcoin’s resilience and growing acceptance among major financial institutions are pivotal in driving its value to unprecedented heights” (04:45).

b. Expansion of Bitcoin ETFs in the United States

A significant narrative from 2024 was the approval of spot Bitcoin Exchange-Traded Funds (ETFs) in the U.S., a trend Bitwise expects to accelerate in 2025. The firm anticipates that major financial institutions like Morgan Stanley and Merrill Lynch will leverage their vast asset management portfolios to funnel trillions of dollars into Bitcoin ETFs.

Ryan Rasmussen points out, “Year one is traditionally the slowest for ETFs, but we foresee a surge in inflows as institutional giants fully embrace Bitcoin ETFs, catalyzing further market growth” (07:30). This optimism is backed by data showing nearly $10 billion has already been invested in U.S. Bitcoin ETFs since Trump became president-elect, suggesting a robust foundation for continued investment.

c. Coinbase Surpassing Charles Schwab as a Leading Brokerage

Bitwise forecasts that Coinbase could surpass Charles Schwab in valuation by 2025, projecting Coinbase’s stock to exceed $700 per share. This prediction is anchored in Coinbase’s strategic diversification beyond brokerage services.

Key factors driving this growth include:

• Partnership with Circle: Coinbase’s collaboration with Circle, the issuer of USD Coin (USDC), positions the company to capitalize on the stablecoin market’s expansion.
• Layer 2 Base: Coinbase’s layer 2 blockchain, Base, is recognized as the top Layer 2 solution in both transaction volume and total value locked (TVL).

Matt Hogan notes, “Coinbase’s multifaceted approach, especially with its staking and custody services, has been instrumental in its revenue generation, enabling the company to sustain significant growth” (12:10).

Additionally, the report highlights that Base generates tens of millions of dollars in revenue each quarter, with staking and custody services contributing hundreds of millions, underscoring Coinbase’s robust financial performance.

d. The Convergence of AI and Crypto

Perhaps the most intriguing prediction centers on the convergence of Artificial Intelligence (AI) and cryptocurrency, a trend Bitwise believes will explode in 2025. This fusion is expected to spawn a new wave of meme coins and token launches driven by AI agents.

A notable example discussed is Clanker, an AI agent designed to autonomously deploy tokens on Base. Clanker successfully launched 11,000 tokens in less than a month, generating over $10 million in fees. Hogan cautions, however, that “while the innovation is exciting, many of these tokens may lack real-world utility and could potentially become worthless” (18:55). He advises investors to “always do your own research, only invest what you’re willing to lose. Have fun out there, but make sure you stay safe.”

Recent developments, such as Anita AI, a fully autonomous AI influencer that launched her own Anita token on the Solana blockchain, further validate Bitwise’s projection of AI-driven token proliferation (19:40).

e. Crypto Unicorns Going Public

Looking ahead, Bitwise predicts that 2025 will be the year of the crypto IPO, with five major crypto unicorns planning to go public. The firms identified include:

• Circle
• Figure
• Kraken
• Anchorage Digital
• Chainalysis

Jen Senasi summarizes, “These companies have matured to a point where going public not only validates their business models but also injects significant capital into the crypto ecosystem, fostering further innovation and stability” (22:15).

2. Emerging Trends and Strategic Developments

Beyond the primary predictions, the episode touches on several emerging trends that are likely to influence the crypto markets in 2025:

• Stablecoin Integration: Enhanced collaboration between crypto exchanges and stablecoin issuers is expected to streamline transactions and bolster market liquidity.
• Regulatory Landscape: Continued regulatory clarity in major markets will play a crucial role in shaping the adoption and integration of cryptocurrencies and blockchain technologies.
• Decentralized Finance (DeFi): Growth in DeFi platforms, driven by innovative financial products and services, will remain a key area of focus for investors and developers alike.

3. Notable Quotes

Throughout the episode, Jen Senasi and the Bitwise representatives provide insightful commentary. Here are some standout quotes:

• Matt Hogan on Bitcoin’s Future: “Bitcoin’s resilience and growing acceptance among major financial institutions are pivotal in driving its value to unprecedented heights” (04:45).

• Ryan Rasmussen on Bitcoin ETFs: “Year one is traditionally the slowest for ETFs, but we foresee a surge in inflows as institutional giants fully embrace Bitcoin ETFs, catalyzing further market growth” (07:30).

• Matt Hogan on Coinbase’s Growth: “Coinbase’s multifaceted approach, especially with its staking and custody services, has been instrumental in its revenue generation, enabling the company to sustain significant growth” (12:10).

• Cautionary Note on AI Tokens: “While the innovation is exciting, many of these tokens may lack real-world utility and could potentially become worthless” (18:55).

4. Conclusion and Listener Engagement

Jen Senasi wraps up the episode by inviting listeners to share their own predictions for 2025 in the comments section, fostering community engagement and discussion. She also encourages listeners to subscribe to the CoinDesk Podcast Network for more insightful content and to follow their YouTube channel for visual updates.

Senasi concludes with a reaffirmation of the podcast’s mission: “It’s such a pleasure to bring you on this journey with me to better understand the crypto markets. Thank you for listening to Markets Daily.”

Key Takeaways:

• Bullish Outlook for Major Cryptos: Bitcoin, Ethereum, and Solana are poised for substantial growth, potentially reaching new all-time highs.

• Institutional Investment Surge: The expansion of Bitcoin ETFs is set to attract significant institutional capital, further legitimizing the crypto market.

• Coinbase’s Strategic Positioning: With its diverse services and strategic partnerships, Coinbase is on track to potentially become the most valuable brokerage, surpassing traditional financial giants.

• AI and Crypto Synergy: The intersection of AI and cryptocurrency is anticipated to drive innovative token launches, although with caution advised due to potential volatility and lack of utility.

• Rise of Crypto Unicorns: A wave of major crypto companies are expected to go public in 2025, marking a significant milestone for the industry.

For those keen on staying ahead in the dynamic world of cryptocurrencies, this episode provides a comprehensive roadmap of what to expect in the coming year, underscored by expert analysis and forward-thinking predictions.