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Veronika Rinecker
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Veronika Rinecker
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Bitcoin (BTC) could reach new all-time highs in 2025, trading above $180,000, according to Bitcoin Suisse, a Swiss financial services provider specialising in cryptocurrencies.
This forecast was made in Bitcoin Suisse’s “Crypto Outlook 2025” and is based on a confluence of factors, including improving macroeconomic conditions, the emergence of Bitcoin as a strategic reserve asset and growing institutional adoption.
Bitcoin in 2025: Macro Trends and Institutional Adoption Are Key Drivers
In 2025, Bitcoin Suisse expects a “soft landing” for the global economy, characterized by easing inflation, stable financial conditions, and a shift toward supply-side economic policies. This environment is expected to favor risky assets such as Bitcoin.
Bitcoin Suisse Predictions for 2025
Prediction #1
Macro conditions will fundamentally ease and support a soft landing. pic.twitter.com/ZSiUxf453Q— Bitcoin Suisse (@BitcoinSuisseAG) December 16, 2024
The report also highlights growing momentum for Bitcoin adoption as a strategic reserve asset in the US and other countries. Initiatives such as the Lummis Bitcoin Act, which proposes the acquisition of 1 million Bitcoin by the US government, could significantly boost demand.
US states are also increasingly exploring Bitcoin investments, with Florida and Pennsylvania “ambitious” acquiring it directly while Michigan and Wisconsin opt for a more cautious approach through exchange-traded funds (ETFs) and trusts. This growing public and private sector adoption further solidifies Bitcoin’s role in treasury management, the report said.
Bitcoin Suisse analysts also noted that Bitcoin’s neutrality is attracting global interest, particularly from nations such as Russia and China. These countries see Bitcoin as a solution to financial challenges, both as a hedge against potential US dollar instability and as a solution to pressing financial obstacles (sanctions).
Institutional Flows Fuel Bitcoin’s Rise
The report further emphasized the need for a hard monetary anchor like Bitcoin, especially given the significant loss of purchasing power in major fiat currencies since 2000.
It also pointed out the crucial role Bitcoin could play in addressing mounting sovereign debt challenges. With US federal debt soaring, the report suggested that Bitcoin’s compound annual growth rate could offer governments a powerful tool to offset debt.
In addition, the approval of spot Bitcoin ETFs has attracted institutional capital, contributing to price stability and higher valuations. Bitcoin Suisse predicts continued institutional inflows into Bitcoin ETFs in 2025, further driving up the BTC price.
Altcoins Take Center Stage in 2025
Bitcoin Suisse’s 2025 outlook also presents a bullish outlook for altcoins, especially in the first half of 2025.
Bitcoin Suisse predicts that altcoin season will peak in the first half of 2025, with the total altcoin market capitalization potentially increasing by 5x.
This surge is expected to occur as Bitcoin approaches its cycle peak valuation, leading to capital rotation into altcoins. This pattern aligns with historical market cycles where altcoins outperform during the final phases of Bitcoin’s bull run.
The analysts expect Ethereum (ETH) and Solana (SOL) to be key outperformers during this period, maintaining relative strength against Bitcoin due to their increasing importance in the crypto ecosystem.
Staking ETFs and Rollups: Ethereum’s 2025 Outlook
Additionally, the report predicts that Ether staking ETFs will attract significant institutional capital, potentially exceeding the market cap adjusted flows of Bitcoin ETFs. This is anticipated once regulatory hurdles surrounding staking yields in ETFs are cleared under the new US administration.
The bank expects Ethereum’s monetary policy to remain stable in 2025, with no changes to the issuance rate of staking rewards. Despite discussions about adjusting Ethereum’s issuance to address concerns about excessive staking ratios, the Bitcoin Suisse analysts believe that maintaining a predictable monetary policy will enhance ETH’s appeal as a store of value.
Bitcoin Suisse also predicts that by 2025, major financial institutions will launch their own “rollups” on Ethereum – solutions that increase Ethereum’s transaction throughput and reduce costs while inheriting Ethereum’s security.
Firedancer and Beyond: Solana’s Path to Dominance in 2025
Bitcoin Suisse also expects Solana to solidify its position as “as premiere general purpose smart contract platform” (GPSCP) in 2025.
This is attributed to several key developments, such as the Firedancer upgrade which should improve network robustness by introducing a multi-client system. Additionally, Solana is focused on fundamental improvements, addressing areas like state growth mitigation, state contention handling, and enhanced scalability and security.
“While we don’t expect to see all these improvements fully realized in 2025, the partial shift from a “move fast and break things” approach to more focus on strategic fundamental improvements involving independent teams makes us confident on the sustainable success of Solana as a premiere GPSCP,” the analysts wrote in the report, adding:
“This will manifest in Solana maintaining its place as a platform of choice for DeFi and DePIN founders, and becoming more attractive for institutional tokenized asset issuers, which is crucial for fully realizing the potential of a permissionless, global state machine synchronized at the speed of light.”
Overall, the report paints a positive picture for altcoins, highlighting their growth potential as regulatory clarity improves and institutional adoption increases:
“The convergence of Bitcoin’s peak valuations, Ethereum’s expansion, and the anticipated capital rotation into altcoins underpins the case for a deep altcoin season in H1 2025. This period will present significant opportunities for outsized returns, with select assets poised for exponential growth.”
