Crypto Market Cap Set to Triple by 2025

Bernstein, a leading global analytical firm, has forecasted a dramatic increase in the cryptocurrency market capitalization, suggesting it could surge to $7.5 trillion by the end of 2025. This bold prediction underscores a potential tripling from today’s $2.6 trillion valuation, spearheaded by significant growth in Bitcoin, the Ethereum ecosystem, and leading blockchains such as Solana and Avalanche.

The Bernstein analysts, Gautam Chhugani and Mahika Sapra, attribute this anticipated growth to what they describe as “unprecedented” institutional adoption of cryptocurrencies. They highlight Bitcoin’s expected rise to a staggering $3 trillion market cap, alongside the Ethereum ecosystem reaching $1.8 trillion and other leading blockchains cumulatively amassing $1.4 trillion by 2025.

Furthermore, they predict blockchain gaming will emerge as the “consumer killer app,” driving widespread adoption and investment in the crypto sector.

Beyond individual cryptocurrencies, Chhugani and Sapra anticipate significant success for new U.S. spot bitcoin exchange-traded funds (ETFs). They expect assets under management in these ETFs to increase fivefold, from the current $60 billion to an impressive $300 billion by 2025. This optimism reflects a broader confidence in the growth and maturation of the cryptocurrency market as a whole.

Adding another layer to their optimistic outlook, the Bernstein analysts have also turned their attention to Robinhood, the popular trading app known for its appeal among retail investors. Initiating coverage on Robinhood stock with an outperform rating and a price target suggesting an 80% upside, they argue that Robinhood is “riding on the crypto comeback arc.”

This assessment is based on the anticipation of a “monster of a crypto cycle over 2024-2025,” during which they expect Robinhood to significantly increase its crypto revenues, outpacing consensus expectations by ninefold.

The analysts forecast a pivotal year in 2025 for Robinhood, predicting it will reach a full-year positive net income of approximately $910 million, a stark contrast to its $541 million loss in 2023. This turnaround is not only indicative of Robinhood’s potential but also reflects the expected vibrancy of the crypto market during this period.

The bullish sentiment is mirrored in the broader crypto market as well. The GM 30 Index, which tracks the top 30 cryptocurrencies, saw a modest increase of 0.5% to 162.13 over the last 24 hours. Additionally, Bernstein analysts posit that Bitcoin miners will remain the best equity proxies for Bitcoin, projecting an ultimate price target of $150,000 for the cryptocurrency in this cycle.

As the market continues to mature and expand, these forecasts offer a glimpse into the transformative potential of cryptocurrencies and blockchain technology over the next few years. Investors and market watchers will be keenly observing these developments, ready to navigate the promising yet volatile waters of the crypto world.