Investing.com -- With the onset of 2025, the crypto sector is stepping into what can be described as the "Infinity Age,” according to Bernstein analysts. This represents a period of continuous growth and mainstream integration, where digital assets are becoming an established and accepted part of the financial landscape, seamlessly fitting into the evolving framework of the modern economy.
“We expect Crypto and AI to be symbiotic,” analysts led by Gautam Chhugani said in a note. “Also, expect less of boom-bust patterns. Crypto is now firmly on the radar of corporates, banks, and institutions, weaving itself into the very fabric of our financial systems.”
In the report, Bernstein highlighted 10 crypto predictions for 2025.
1) Bitcoin at $200K: Bernstein projects Bitcoin (BitfinexUSD) to reach $200,000 by the end of 2025. This forecast is driven by institutional and corporate demand rather than sovereign buying.
“Our ‘Bitcoin to $200K’ thesis is simply based on demand and supply,” analysts noted.
Currently, 450 Bitcoins are mined daily, but corporate treasuries and ETFs have acquired 20 times that amount since the US election. "It is the demand,” Bernstein highlights.
Despite Bitcoin rising 43% during this period, analysts suggest it could have been higher. Notably, 60% of Bitcoin hasn’t moved in over a year. As ETFs and corporate treasuries grow their holdings—now accounting for 11%—Bernstein expects ownership to become “more sticky,” shifting Bitcoin from traders to long-term holders like MicroStrategy (NASDAQ:MSTR).
2) Corporate Bitcoin Treasury Demand: Corporate treasury investments in Bitcoin are expected to exceed $50 billion, more than doubling 2024 levels. MicroStrategy leads this trend, growing its Bitcoin holdings through innovative financing mechanisms.
3) Bitcoin ETFs on the Rise: Institutional inflows into Bitcoin ETFs could surpass $70 billion in 2025, representing 8% of Bitcoin’s market cap, according to Bernstein. This surge reflects growing acceptance among hedge funds, banks, and wealth managers.
4) Miners Turn to AI: Bitcoin miners are shifting towards AI, diversifying their operations into data centers for long-term stability. Riot Platforms (NASDAQ:RIOT) and Core Scientific Inc (NASDAQ:CORZ) are spearheading this trend, with investments in AI infrastructure expected to attract broader institutional support.
5) Regulatory Shifts: The US regulatory environment is expected to become more favorable, with legislation clarifying the structure of digital assets and expanding CFTC oversight. Meanwhile, analysts anticipate the SEC to withdraw or settle its cases against leading crypto companies and protocols.
6) Stablecoins Reach $500 Billion: Stablecoin adoption is projected to exceed $500 billion, driven by cross-border B2B payments. Businesses increasingly turn to stablecoins for efficiency, leveraging low-cost and instant settlement capabilities.
7) Crypto IPO Boom: Bernstein also anticipates a wave of crypto-related IPOs this year, as regulatory clarity encourages exchanges, wallets, and stablecoin firms to go public. Moreover, tokenized equity trading on public crypto rails is expected to gain traction.
8) Financial Institutions Expand Offerings: Banks and asset managers will likely introduce a range of crypto products in the coming months, including custody services, structured OTC derivatives, and DeFi-focused funds, catering to growing client demand for diversified crypto exposure.
9) Ethereum’s Redemption: Over the coming twelve months, Bernstein analysts expect to solidify its position as the second most valuable blockchain, driven by deflationary supply dynamics and utility in decentralized finance. Strong ETH price action reflects increasing adoption and institutional interest.
10) AI Meets Crypto: Finally, the convergence of AI and crypto is set to create a new innovation sector, with applications ranging from AI-authenticated crypto wallets to autonomous agents using blockchain for payments and identity verification.