Bernstein on Monday outlined bold predictions for the cryptocurrency market in 2025, emphasizing Bitcoin‘s (CRYPTO: BTC) growth, regulatory changes and the convergence of crypto with AI technologies.
Bernstein’s 2025 Bitcoin Target
According to the report, Bitcoin is poised to reach $200,000 by the end of 2025, driven by rising institutional demand and its limited supply.
“Bitcoin’s price trajectory reflects increased corporate treasuries and ETF holdings, making it a cornerstone of the financial future,” it stated.
The report also highlights an anticipated surge in corporate Bitcoin investments, predicting treasury allocations will double to exceed $50 billion, up from $24 billion in 2024.
This trend is led by industry pioneers such as MicroStrategy (NASDAQ:MSTR), which continues to increase its holdings.
“MicroStrategy remains the flagbearer, tapping new capital markets and significantly expanding Bitcoin reserves,” Bernstein analysts noted.
Bitcoin ETFs To Continue Buying
The expansion of Bitcoin ETFs is another key driver of growth, with net inflows expected to surpass $70 billion, doubling the $35 billion recorded in 2024.
Bernstein emphasized that ETF growth demonstrates rising institutional confidence in Bitcoin as a diversified investment vehicle.
Bitcoin Mining Meets AI Data Centers
The research predicts a transformative shift for Bitcoin miners, who are expected to allocate increasing power capacity toward AI data centers.
This move is seen as both a sustainability strategy and a method to broaden institutional appeal.
“This shift ensures sustainability and a broader institutional appeal,” the report stated.
The convergence of cryptocurrency and artificial intelligence is set to redefine both sectors.
Bernstein envisions AI-enabled crypto functionalities driving innovation, from autonomous agents to decentralized markets for AI services.
“The convergence of crypto and AI will redefine both industries,” the report stated.
Bernstein foresees significant regulatory changes, including stablecoin legislation and clarified crypto market structures, which could position the United States as a leader in crypto innovation.
The stablecoin market is projected to cross $500 billion in circulation by 2025, bolstered by regulatory clarity and its utility in cross-border business payments.
“Regulatory clarity will drive stablecoin adoption in cross-border B2B payments,” Bernstein predicted.
The report also anticipates a wave of crypto IPOs and the tokenization of equity markets as the SEC adopts a pro-crypto stance.
Analysts believe this shift will enable private crypto firms to enter public markets, marking a pivotal moment for the industry.
“This marks a turning point for private crypto firms entering public markets,” the report stated.
TradFi Interest Could Fuel Ethereum Spike
Traditional financial institutions are also expected to introduce new trading, custody and active asset management products, further integrating crypto into traditional markets.
Bernstein’s report predicts that Ethereum (CRYPTO: BTC) will regain institutional favor due to its deflationary model and utility-driven demand, positioning it as the second-most valued blockchain.
“Ethereum’s unique use cases and staking yields will make it a favorite for traditional investors,” the analysts noted.
A new Messari report points to potential headwinds from regulatory uncertainty and broader economic vulnerabilities in its 2025 preview for the digital asset sector.
What Happened: The report suggests that positive developments are counterbalanced by persistent risks, calling for a balanced outlook.
In 2024, traditional markets climbed a “wall of worry,” driven by a resilient U.S. economy and a shift toward easing monetary policy.
Despite some volatility related to geopolitical tensions and the yen-carry trade, risk assets generally performed well.
While the macroeconomic backdrop appears supportive for crypto in 2025, the report cautions that potential disappointments in the Trump presidency could undermine market sentiment.
Positive macro developments notwithstanding, the crypto market faced unique challenges this year.
Headwinds included German government selling, Mt. Gox distributions, a DOJ investigation into Tether (CRYPTO: USDT), and a hostile regulatory environment marked by SEC lawsuits against major industry players.
The election of a new administration brought a shift in crypto policy expectations.
Promises include forming a crypto advisory council, ending the “unlawful crypto crackdown,” and supporting Bitcoin mining.
However, the report emphasizes that while a more favorable regulatory environment is anticipated, lasting clarity is expected to come from Congress rather than the SEC, creating potential risks.
The report indicates that stablecoin legislation is likely in 2025 with a robust state pathway for issuers.
Decentralized stablecoins may still face regulatory disadvantages, with Congress likely to take action to limit the illicit use of mixers while protecting financial privacy.
Why It Matters: Institutions are increasing their involvement in crypto through ETF investments, tokenized treasuries and stablecoin initiatives.
Blackrock‘s (NASDAQ:IBIT) ETF has shown rapid growth, and traditional firms are launching their own on-chain money market funds.
The blurring of fintech, payments and crypto is accelerating, with firms like PayPal (NYSE:PYPL) launching stablecoins on multiple chains.
The report emphasizes these developments as evidence of increased institutional confidence and concludes that despite positive shifts in policy and institutional involvement, the crypto industry’s risk is not insignificant.
Coinbase‘s (NASDAQ:COIN) 2025 crypto market outlook highlights five major trends poised to define the cryptocurrency market in the coming year, with stablecoins, tokenization and a regulatory shift leading the way.
Stablecoins remain crypto’s ‘killer app’, with market capitalization growing 48% in 2024 to reach $193 billion as of Dec. 1.
Coinbase expects this trend to accelerate, moving beyond trading to broader adoption in global commerce and capital flows.
The report estimates stablecoin transaction volumes surpassed $27 trillion in 2024, three times higher than the previous year.
The tokenization of real-world assets (RWA) is another key focus area, having grown over 60% to $13.5 billion in 2024.
Coinbase believes RWA tokenization will streamline financial transactions and expand into areas like private credit, corporate bonds, real estate, and commodities.
On the institutional front, the success of spot Bitcoin ETFs has reshaped demand dynamics, with Coinbase expecting further developments.
The potential approval of ETFs for XRP (CRYPTO: XRP), Solana (CRYPTO: SOL) and Litecoin (CRYPTO: LTC) could drive limited near-term demand.
However, innovations such as allowing in-kind creations or staking could significantly enhance ETF appeal by narrowing bid-ask spreads and improving alignment with net asset values.
After facing setbacks in the previous cycle, lending protocols and decentralized exchanges (DEXs) have shown resilience, hitting all-time highs in total value locked (TVL).
A pro-crypto regulatory shift in the United States is expected to provide much-needed clarity, with a bipartisan majority in Congress supporting crypto-friendly policies.
Coinbase anticipates regulatory milestones, including stablecoin legislation and an end to regulation-by-enforcement.
Globally, G20 countries and other financial hubs are also moving toward creating digital asset frameworks.
Microsoft (NASDAQ:MSFT) shareholders will cast their votes on whether the company should publicly assess adding Bitcoin to its balance sheet on Dec. 10.
The vote, scheduled for 8:30 AM PST, comes as Bitcoin (CRYPTO: BTC) trades at $98,050, after touching a record high of $103,679 and gains endorsement from global leaders such as President-elect Donald Trump and Russian President Vladimir Putin.
The proposal, titled “Assessment of Investing in Bitcoin,” was submitted by the National Center for Public Policy Research, which describes Bitcoin as “an excellent hedge against inflation,” Quartz reported, quoting an SEC filing.
Despite this advocacy, Microsoft’s board of directors has recommended voting against the measure, asserting that the company already evaluates a broad range of assets, including Bitcoin, as part of its existing investment strategy.
“The company carefully considers this topic as part of our broader financial framework,” the board noted in a filing with the U.S. Securities and Exchange Commission (SEC).
Microsoft co-founder Bill Gates has consistently expressed skepticism about cryptocurrencies, often citing their speculative nature.
His views appear to align with the board’s position, further diminishing the likelihood of shareholder approval.
While some tech giants like Tesla (NASDAQ:TSLA) and MicroStrategy (NASDAQ:MSTR) have embraced Bitcoin, Microsoft has yet to follow suit.
MicroStrategy, for example, holds 423,650 BTC, valued at approximately $42 billion at current market prices, making it the largest corporate Bitcoin holder.
Elon Musk weighed in on excessive government expenditure as a major driver of inflation amid Donald Trump‘s cabinet appointments spelling potentially good news for the cryptocurrency industry.
What Happened: In a post on X on Thursday, Musk stated that “all government spending is taxation,” either direct or indirect via inflation.
In a related exchange, Shibetoshi Nakamoto, the creator of Dogecoin, criticized the government’s financial practices, noting that the government has spent an average of $2 trillion more annually than it earns over the past eight years.
“Any company that ran like that would fail,” Nakamoto stated, reflecting the broader dissatisfaction over fiscal policy within the crypto community.
Why It Matters: The debate comes against the backdrop of Donald Trump’s administration potentially drawing significant support from crypto advocates.
According to crypto user Pledditor, Trump’s picks include 11 confirmed “Bitcoin allies” and seven confirmed cryptocurrency holders, signaling a shift toward pro-crypto policies at the highest levels of government.
Speculation of Trump supporting legislation to eliminate capital gains taxes on profits from U.S.-issued cryptocurrencies has persisted on X.
Unconfirmed rumors, citing sources in the Trump transition team, say a policy that could make digital assets like Cardano (CRYPTO: ADA), Algorand (CRYPTO: ALGO), Ripple (CRYPTO: XRP, and Hedera (CRYPTO: HBAR) more appealing for American investors would exempt U.S.-based cryptocurrency projects from capital gains taxes
Under this proposal, U.S.-based crypto projects would become more favorable to American investors.
Companies would need to be registered in the United States prior to issuing assets to qualify for the exemption.
However, there are provisions for relocating existing crypto entities to the U.S. to capitalize on the tax incentive, signaling the administration’s commitment to attracting crypto businesses and innovation within the country.
Since the election, neither the President-elect himself nor sources close to him have elaborated on what cryptocurrency policy under a Trump administration will look like.
What’s Next: The proposed capital gains tax exemption will be among the timely topics likely explored at Benzinga’s Future of Digital Assets conference on Nov. 19.
Standard Chartered projects a fourfold increase in the digital assets market cap, reaching $10 trillion by the U.S. mid-term elections in late 2026.
What Happened: According to a new note from Geoffrey Kendrick, Head of Research at Standard Chartered, this growth forecast is based on anticipated regulatory shifts following a projected Republican sweep in the recent election cycle, which could lead to mainstream adoption and real-world use cases for digital assets.
“For me, the Trump-ublican sweep means Digital Assets are finally going to come of age,” Kendrick commented, expressing confidence that favorable regulatory policies will drive adoption across the asset class. He added, “I look for the entire asset class to 4X by the time of the US mid-terms in late 2026.”
Standard Chartered highlight several factors contributing to this growth projection.
These include potential regulatory changes, such as a repeal of SAB 121 and favorable stablecoin regulations, which the bank anticipates could be enacted shortly after the new administration takes office in January 2025.
Additionally, Standard Chartered expects the SEC to adopt a softer regulatory stance on digital assets, further opening pathways for mainstream use.
The report also suggests that assets closely linked to practical, end-use cases—like Solana (CRYPTO: SOL), which the bank expects to outperform Bitcoin (CRYPTO: BTC), and Ethereum (CRYPTO: ETH)—are likely to see the most significant growth.
Furthermore, while Standard Chartered considers a U.S. Bitcoin reserve a low-probability event, it notes this move could have a significant impact on the digital assets market if implemented.
Kendrick emphasizes that the regulatory clarity and adoption policies expected from a Trump administration could lift the entire asset class, providing an environment conducive to digital assets going mainstream.
Standard Chartered reiterates its end-2025 target prices for Bitcoin at $200,000 and Ethereum at $10,000, driven by expectations of a Republican-led administration’s policies.
What’s Next: These insights into the potential trajectory of digital assets and the broader regulatory landscape will be explored further at Benzinga’s Future of Digital Assets event on Nov. 19, where industry leaders will discuss the future of cryptocurrencies amid anticipated regulatory changes.
Coinbase Inc. (NASDAQ:COIN) founder Brian Armstrong issued a strong warning to lawmakers, stating that opposing cryptocurrency is now a “good way to end your career.”
What Happened: Armstrong’s comments follow election results that, according to his “reflections on the election through a crypto lens,” signal a shift in U.S. political support toward pro-crypto policies and candidates.
With 257 pro-crypto candidates elected to the House, Armstrong emphasized that anti-crypto stances no longer align with voters’ priorities, especially as citizens increasingly seek alternatives to the current financial system.
Armstrong pointed to several election outcomes as indicators of the crypto industry’s growing influence, noting that a significant factor in Ohio’s Senate race was the crypto-friendly stance of Bernie Moreno (R-Ohio), who defeated one of the industry’s most vocal opponents, Sherrod Brown (D-Ohio).
Additionally, Armstrong highlighted the “StandWithCrypto” movement, which mobilized millions of pro-crypto voters, showing the extent of support for policies favoring digital assets.
“DC received a clear message that being anti-crypto is a good way to end your career,” he said.
Armstrong also criticized figures like Senator Elizabeth Warren (D-Mass.) and SEC Chair Gary Gensler, whom he accused of attempting to “unlawfully kill” the industry.
Reflecting on the election outcome, he argued that “the work of Senator Warren and Gary Gensler” did not resonate with voters, whom he believes desire “economic freedom” over expansive government regulation.
The Coinbase CEO sees the path ahead as one rooted in bipartisan support for crypto, with the industry committed to advancing “sensible legislation” in the U.S.
Coinbase and other crypto giants, including Andreessen Horowitz, have contributed significant funding to PACs like Fairshake, with a goal of securing pro-crypto policies and protections for the industry by the 2026 midterms.
StandWithCrypto, an advocacy group supported by Coinbase, also plans to expand its efforts, aiming for 4 million advocates by 2026 to strengthen global and domestic policy alignment for crypto.
What’s Next: The broader political environment could foster favorable policies for crypto, which industry leaders will analyze further at Benzinga’s Future of Digital Assets event on Nov. 19.
Matthew Sigel, head of digital assets research at VanEck, sees Bitcoin (CRYPTO: BTC) on a strong upward path as the U.S. presidential election approaches, bolstered by growing interest and shifting macroeconomic conditions.
What Happened: “Our bet is that this is a very bullish setup for Bitcoin into the election,” Sigel told CNBC on Monday, pointing out that factors such as Trump’s increasing popularity in prediction markets and renewed optimism in the crypto sector are helping drive demand.
According to Sigel, Trump’s position as the more pro-crypto candidate, compared to Vice President Kamala Harris, is likely fueling confidence among crypto investors.
Sigel highlighted Bitcoin’s strongest long-term correlations: a negative relationship with the U.S. dollar and a positive relationship with money supply growth, which has accelerated recently due to the Federal Reserve’s pivot on interest rates.
This increase in money supply is contributing to Bitcoin’s upward momentum, along with a “seller’s exhaustion” phase following significant sales by both the German and U.S. governments.
Sigel described these government Bitcoin sales, totaling around $2 billion, as “spiteful,” referring to seizures and subsequent sales intended to prevent criminal misuse of the asset. “That has eased, and I think the election is helping,” he added.
Sigel also pointed out that Bitcoin’s historical volatility pattern tends to remain low before an election, followed by a post-election rally once results are clear.
He compared the current situation to the 2020 election cycle when Bitcoin initially lagged but then surged as clarity emerged.
Sigel believes that, after the election results are finalized, a potential U.S. sovereign debt downgrade by Moody’s could act as a catalyst for Bitcoin, attracting buyers looking for alternatives to traditional fiat currencies.
“Once the election result is finalized, Moody’s is going to downgrade U.S. sovereign debt,” he noted, hinting at a possible “high vol rally” that could bring Bitcoin to new highs.
Sigel’s outlook aligns with projections from other analysts, including Standard Chartered, which anticipates that Bitcoin could reach $73,000 by Election Day on Nov. 5 and potentially surge to $80,000 shortly after if Trump secures a victory.
Standard Chartered’s analysis points to heavy open interest in Bitcoin options with $80,000 call strike prices expiring on Dec. 27, suggesting strong market anticipation of a post-election rally.
“Our estimates show a total price increase of around 10% from the pre-election price,” potentially pushing Bitcoin to $80,000 in the days following the election, Geoffrey Kendrick, Standard Chartered’s head of crypto research, said.
Looking further ahead, Standard Chartered’s year-end target for Bitcoin is $125,000, contingent on a Republican sweep in both the presidential and congressional races.
This bullish projection hinges on Republicans creating a favorable environment for digital assets, as many investors view the party as more supportive of crypto-friendly policies.
However, the outlook shifts if Harris wins; in that case, Standard Chartered anticipates an initial dip in Bitcoin prices, followed by a recovery to $75,000 by year-end, reflecting cautious optimism rather than a rally.
Sigel further highlighted Bitcoin’s growing appeal beyond U.S. borders, especially among BRICS nations.
He pointed out that three new BRICS members—Argentina, UAE and Ethiopia—have started investing in Bitcoin mining as part of national initiatives, marking a significant step toward de-dollarization.
“BRICS GDP is now greater than the combined GDP of the G7,” he said, adding that some BRICS countries are exploring Bitcoin as a medium for global trade.
Russia, for instance, has announced plans to fund Bitcoin mining infrastructure to facilitate trade settlements in Bitcoin, signaling a shift toward alternative financial systems that bypass traditional fiat currencies.
What’s Next: These themes will be further discussed at Benzinga’s Future of Digital Assets event on Nov. 19, where experts will explore the role of Bitcoin in an evolving global economy.
Avalanche (CRYPTO: AVAX) has launched the Avalanche Card, a crypto payment card that allows users to make purchases at any Visa-accepting location using their digital assets.
This card supports cryptocurrencies such as USDC (CRYPTO: USDC) and AVAX, enabling holders to spend their crypto as easily as traditional currency.
The card, available in both physical and virtual forms, was initially released in Latin America and the Caribbean, with plans to expand into other regions.
The Avalanche Card functions without traditional financial ties, meaning it is not linked to a bank account, and transactions do not impact the user’s credit score.
Upon signing up, users are provided with a self-custody wallet, ensuring secure and instant access to their funds. Security features include spending alerts, the ability to freeze the card, and the option to change the PIN at any time.
Avalanche’s latest move represents an important step towards making cryptocurrency a practical and mainstream payment method.
By offering the ability to use digital currencies for everyday transactions, Avalanche is helping to close the gap between crypto and traditional financial systems.
The card is initially being offered in regions like Latin America and the Caribbean, where financial inclusion and access to traditional banking services can be limited.
However, users from certain countries, including Cuba, Venezuela, Nicaragua, and Russia, are excluded from accessing the card.
In addition to consumer-focused advancements like the Avalanche Card, the company is also strengthening its blockchain infrastructure.
Through a partnership with Chainlink (CRYPTO: LINK), Avalanche is piloting an AI-powered on-chain database that utilizes decentralized Oracle technology.
This new system will offer real-time data handling across blockchain networks, enhancing transparency and efficiency for corporate actions such as mergers and dividends.
Avalanche has also been involved in a recent buyback of 1.97 million AVAX tokens from the Luna Foundation Guard for $45.5 million.
The tokens were originally sold to LFG to build reserves for TerraClassicUSD, but the settlement aims to prevent complications in LFG’s bankruptcy proceedings.
What’s Next: The growing integration of crypto into everyday life and the wider financial system will likely be discussed at the upcoming Benzinga Future of Digital Assets event on Nov. 19, where industry leaders will explore how tools like the Avalanche Card are shaping the future of digital currencies.
Cryptocurrency experts are advising traders to remain vigilant and potentially reduce their long positions if Bitcoin (CRYPTO: BTC) trades below a critical support level amid conflicting signals in the broader economic landscape.
What Happened: According to the latest 10x Research report, the crucial level to watch is the 21-week moving average, currently sitting at $60,918.
This price point coincides with a minor support level of $60,600, which previously acted as resistance in August and September.
“While the buy-and-hold strategy has historically been effective for U.S. stock indices and Bitcoin, there’s no guarantee it will remain so,” caution analysts at 10x.
This comes in light of conflicting market data, where faster-moving trends sometimes paint a different picture from slower macroeconomic indicators.
Bitcoin’s recent inability to surpass $66,000, which aligns with a descending resistance line, has added to market caution.
“The liquidity cycle has yet to materialize fully,” according to 10x analysts, a sentiment echoed by the flat ISM Manufacturing Index, which stayed at 47.2 this month, contrary to expectations of a sharper decline.
Another critical point revolves around the ISM’s impact on Bitcoin cycles.
“The ISM continues to signal downside risk for Bitcoin. Years of experience and rigorous backtesting have shown the ISM’s significance across multiple economic indicators and assets,” the analysts state.
They highlight that until the ISM demonstrates a consistent upward trend, the market may struggle to attract liquidity inflows.
Despite these concerns, there remains optimism for a potential upside.
Analysts still believe that Bitcoin could see gains in Q4, provided it holds above the $60,918 mark.
“The $60,918 level is closely aligned with the $60,600 level, which has acted as resistance multiple times in August and September,” analysts note.
However, they urge traders to be prepared: “If Bitcoin drops below the 21-week moving average of $60,918, traders should implement a solid risk management framework.”
What’s Next: For investors looking to learn more about the evolving dynamics of digital assets, the upcoming Benzinga’s Future of Digital Assets event on Nov. 19 offers valuable insights into the crypto landscape.
