Will encryption currencies open the "infinite era"? Bernstein: BTC price reaches $200,000, ETH will become the new darling of institutions

With the arrival of 2025, research firm Bernstein has made several trend predictions for the encryption market, claiming that the market will enter the so-called 'infinite era', symbolizing an era of continuous evolution and popularization. Cryptocurrency will become an important component of the global financial system.

(Dragonfly Partner Haseeb: 2025 Cryptocurrency Trend Forecast, Six Key Areas Proposed)

2025 Cryptocurrency Outlook: Entering the Era of Infinity

Bernstein analyst Gautam Chhugani's forecast suggests that the market is moving towards wider adoption and maturity as the encryption industry moves into what he calls an "infinite era." The combination of Bitcoin, Ethereum, AI and stablecoins will have a profound impact on the global financial system:

"Infinity Era" is an ongoing and widely accepted long-term process, where Cryptocurrency will eventually cease to be a controversial term and become part of the financial system designed for the new era.

And add "With Crypto Assets firmly entering the radar of enterprises, banks, and institutions, and gradually integrating into our financial system, their fluctuation patterns will continue to weaken."

Bitcoin price is expected to reach $200,000

Bernstein first predicted that the price of each Bitcoin would reach $200,000 by the end of 2025. This target is driven by the adoption trend of Bitcoin by global sovereign nations, financial institutions, and companies, including President-elect Trump's commitment to Bitcoin as a strategic reserve, as well as policies from companies such as MicroStrategy:

It is expected that the corporate financial inflows of Bitcoin will reach $50 billion in 2025, a significant increase from $24 billion in 2024, and MicroStrategy and other Bitcoin miners may continue to lead the demand.

The vigorous development of Cryptocurrency ETF

In addition, he also believes that the net inflows of the US spot Bitcoin ETF will exceed $70 billion in 2025, doubling the $35 billion in 2024, mainly driven by accelerated adoption by hedge funds and banks.

The weekly inflow of funds into the US spot Bitcoin ETF is driven by the price increase in October (SoSoValue)

Bitcoin and Ethereum are still the focus of the ETF market, not to mention the possible launch of Solana ETF at the end of the year.

(2024 is the year of ETF harvest, and more encryption ETFs will be launched in 2025)

Integration of Bitcoin Mining and AI Technology

With the rapid development of AI technology, Bernstein believes that Bitcoin miners need to integrate AI technology into their business models to enhance industry sustainability and reduce cyclical fluctuations:

According to data from 2024, mining companies (Core Scientific and TeraWulf) that combine AI technology outperformed miners (Riot Platforms and CleanSpark) that solely focus on mining, and this trend is expected to continue in 2025.

(Bitwise CEO's 2025 prediction: AI and tokenization will reshape the capital market?)

The innovative fusion of Crypto Assets and AI

Around AI, Bernstein expects that the integration of this technology with cryptocurrency will bring a series of innovations in 2025, including decentralized AI blockchain, 'identity verification' services, AI-integrated crypto assets wallets, and AI agents, driving a new wave of technological applications.

(a16z 2025 Technology Trends Forecast: The Future of AI, Blockchain, and Digital Identity)

The stablecoin market is expected to surpass 500 billion U.S. dollars

Next, the stablecoin market is expected to surpass $500 billion in size in 2025, more than doubling the $200 billion in 2024:

Stablecoins are expected to become the primary solution for cross-border payments and remittances, and may receive potential legislative support for stablecoins.

(Circle CEO Allaire Interview: Stablecoin Drives the Mainstreaming of the encryption Industry, Hong Kong Becomes a Springboard for Circle's Advancement in Asia)

The positive impact of a friendly regulatory environment

The new government may push for significant progress in the regulation of Crypto Assets, including legislation for stablecoins and the digital asset market. Bernstein expects the SEC to dismiss or settle existing cases with encryption companies and promote more private encryption companies to go public.

(Due to the shrinking market value of USDT caused by the effectiveness of MiCA, Tether chooses to invest instead of sacrificing profits to indirectly participate in the European market)

Ethereum is set to become the new darling of institutions

Finally, despite the widespread disappointment of investors in its performance in 2024, Bernstein still predicts that Ethereum will become the "new favorite" of institutional investors in 2025.

The limited supply of Ether, its utility as a means of payment and collateral, and its key role in L1 and L2 applications make it attractive to traditional investors.

(2025 Ethereum's 'Golden Decade' Coming? Community Makes Multiple Revolutionary Predictions: ETH Price Could Reach $15,000)

This article will open the 'infinite era' of Crypto Assets? Bernstein: BTC price reaches $200,000, ETH will become the new darling of institutions first appeared on Chain News ABMedia.