Bitwise Asset Management is forecasting a dynamic year for cryptocurrencies in 2025, with the market continuing to evolve and grow beyond what was achieved in 2024. The past year has been remarkable, with the successful introduction of spot bitcoin exchange-traded funds (ETFs), a more favorable U.S. regulatory landscape, and positive price momentum. Yet, Bitwise believes that the best is yet to come.

In their latest report, Bitwise lays out 10 predictions for the future, penned by Chief Investment Officer Matt Hougan and Head of Research Ryan Rasmussen. The firm is confident that major cryptocurrencies will set new record highs in 2025, with bitcoin potentially reaching $200,000, ether climbing to $7,000, and solana soaring to $750—more than three times its current value.

Bitwise attributes bitcoin’s expected rise to the ongoing inflows into ETFs, which are expected to accelerate in 2025. ETFs typically experience greater capital flows in their second year, and with major financial institutions now completing their due diligence, Bitwise predicts that investors will be more inclined to increase their bitcoin exposure. The firm also speculates that the U.S. Department of Labor may soften its stance on crypto investments, unlocking billions in 401(k) investments into digital assets.

The anticipated creation of a U.S. strategic bitcoin reserve is another factor that could significantly boost bitcoin’s price. This initiative could initiate a “bitcoin arms race,” and Bitwise forecasts that the number of nations holding bitcoin could double in 2025, from nine to eighteen.

Other key predictions for 2025 include:

• Stablecoins: With clearer U.S. regulations and increased fintech adoption, Bitwise expects stablecoins to see explosive growth, potentially doubling their market cap to $400 billion. This growth will be driven by increasing demand in global payments, remittances, and savings, particularly in emerging markets.
• Tokenized Assets: Bitwise anticipates that tokenized real-world assets (RWAs) could exceed $50 billion in value, driven by growing interest from institutional investors and traditional finance.
• Memecoins: The memecoin trend will likely continue its upward trajectory, with AI tools making it easier to launch new projects. The hype around memecoins is expected to surpass 2024’s, driven by technological advancements.
• Crypto IPOs: Several crypto-related companies are expected to go public in 2025. Bitwise highlights Circle, Kraken, Anchorage Digital, and Chainalysis as likely candidates for IPOs, further legitimizing the crypto industry in the eyes of traditional investors.
• Coinbase’s Growth: Bitwise projects that Coinbase (COIN) will see its stock price climb to over $700 per share, doubling its current valuation, and possibly surpassing Charles Schwab to become the most valuable brokerage in the world. This growth could potentially lead to Coinbase’s inclusion in the S&P 500, providing even greater exposure to the cryptocurrency market.

The continued rise of cryptocurrencies, driven by institutional involvement, innovation, and regulatory clarity, positions 2025 as a year of exponential growth for the sector. With all these developments in the pipeline, Bitwise believes that the crypto market will see unparalleled expansion, making 2025 potentially its best year yet.