Standard Chartered expects institutional flows into bitcoin to “continue at or above the 2024 pace” next year. He added that the Swiss National Bank also appears to be moving toward embracing bitcoin, with Swiss campaigners collecting signatures to force a vote on the issue. This may take a while, but the move is important — Swiss reserves are six times as large as those in the Czech Republic, Kendrick said. “At current prices this would see the CNB hold 69,000 BTC. The current largest proactive (and known) official holding is El Salvador with 6,049 BTC,” Kendrick calculated. According to the Financial Times, the Czech National Bank could eventually convert 5% of its €140 billion in reserves into bitcoin, if a plan presented Thursday by central bank governor Aleš Michl is approved. Although Trump’s order may have disappointed those who had been hoping for the announcement of a national bitcoin reserve, other countries may be coming around to the idea.
Risks to the downside include U.S.-China tensions, global capital market disruptions, potential unexpected restrictive measures and possible delays to the Fed rate-cutting cycle. “Bitcoin’s price in 2025 is likely to see both significant upward momentum and occasional sharp corrections,” Yang told CNBC. “In moments of market shocks, such as a major stock market downturn, bitcoin could temporarily drop to around $80,000. However, the overall trend is expected to remain bullish.” James Butterfill, head of research for crypto-focused asset manager CoinShares, told CNBC that he sees prices of both $150,000 and $80,000 being in the cards for bitcoin in 2025.
As already mentioned, there are plans to transition to a proof-of-stake algorithm in order to boost the platform’s scalability and add a number of new features. The development team has already begun the transition process to ETH 2.0, implementing some upgrades along the way, including the London hard fork. With the introduction of EIP-1559 however, the base fees used in transactions are burned, removing the ETH from circulation. This means higher activity on the network would lead to more ETH burned, and the decreasing supply should lead to appreciation of Ethereum price, all things equal.
In late 2021, Ethereum’s Arrow Glacier update was delayed to June 2022. Until then, Vitalik Buterin expects the road to the network’s endgame to be shaped by optimistic rollups and Zk-rollups. It included five Ethereum Improvement Proposals (EIPs), namely EIP-3529, EIP-3198, EIP-3541, and most notably EIP-1559 and EIP-3554.
“Based on these dynamics, I predict Bitcoin could peak at $180,000 to $190,000 in 2025, aligning with historical cycle patterns and the growing mainstream adoption of crypto,” Yang said. “A combination of institutional, corporate, and nation state adoption will propel Bitcoin to new heights in 2025,” Thorn wrote in a research note shared with CNBC. “Bitcoin’s growing base of dip buyers and robust institutional support is expected to mitigate severe corrections,” Thielen said. Bitcoin is known to be very volatile with the potential for corrections of between 70% and 80% from all-time highs. He said it is “likely” bitcoin could hit both $80,000 and $150,000 during the course of the year.
The current CoinMarketCap ranking is #2, with a live market cap of $298,039,791,241 USD. The EIP-1559 upgrade introduces a mechanism that changes the way gas fees are estimated on the Ethereum blockchain. Before the upgrade, users had to participate in an open auction for their transactions to be picked up by a miner. This process is known as a “first-price auction,” and as expected, the highest bidder wins. Ethereum’s principal innovation was designing a platform that allowed it to execute smart contracts using the blockchain, which further reinforces the already existing benefits of smart contract technology.
With EIP-1559, this process is handled by an automated bidding system, and there is a set “base fee” for transactions to be included in the next block. Furthermore, users who wish to speed up their transactions can pay a “priority fee” to a miner for faster inclusion. Although plans are already on the way to solve these shortcomings through several upgrades, many competitors have capitalized on this delay to offer crypto users cheaper and faster transactions.
Explore Ethereum (ETH) price prediction for February 1, 2025, with insights on market trends, technical analysis,… Since 2017, DigitalCoinPrice has become one of the trusted brands within the crypto community. This success award goes to the combination of people, accurate crypto market analysis and data, the latest news, latest blogs, advertisement placements, and many more. According to our prediction, right now is a bad time to buy crypto as the total crypto market cap is predicted to increase to $ 2.79T one year from now. Elitsa Taskova, chief product officer of crypto lending platform Nexo, is more bullish on bitcoin’s 2025 prospects than the general consensus.
In the report, TRM Labs said private key and seed phrase compromises, smart contract exploits and flash loan attacks have been the most common crypto hacking strategies in 2024. Some investors are concerned repaid creditors could cash out 10 years of huge Bitcoin market gains en masse, potentially flooding the market with Bitcoin and driving prices significantly lower. VanEck’s digital asset research team reportedly sees Harris as potentially more bullish for Bitcoin and Trump as more bullish for Ethereum. In late July, Trump underscored his commitment to ushering in crypto-friendly policies if he returns to the White House when he delivered the keynote address at the Bitcoin 2024 conference in Nashville.
“Disappointment surrounding Trump’s proposed crypto policies and doubts about their enactment could prompt a significant market correction,” Butterfill said. Butterfill’s $80,000 call, if hit, would be a result of Trump’s promised pro-crypto policies not materializing. “Timing of this is very difficult though and I don’t expect this to occur in 2025, but it will head in that direction,” Butterfill told CNBC via email.