Chiara Bianchi
According to Bernstein analysts, 2025 marks the beginning of the “Infinity Age” for crypto—a transformative era characterized by continuous evolution and broad integration into the financial system. In their report, led by Gautam Chhugani, the team predicts a future where crypto becomes a foundational element of global finance, shedding its reputation for volatility and controversy.
Bitcoin’s Trajectory: $200,000 by Year-End?
Bernstein analysts reaffirm their bold $200,000 Bitcoin price target by the end of 2025, driven by increasing institutional and corporate adoption. While direct nation-state Bitcoin acquisitions remain uncertain, corporate treasury inflows are expected to surpass $50 billion this year, more than double 2024’s total of $24 billion.
- Spot Bitcoin ETFs are projected to attract over $70 billion in net inflows, up from $35 billion in 2024.
- Institutional ownership of Bitcoin ETFs could reach 40%, compared to 22% in Q3 2024.
AI Reshaping Bitcoin Mining
The convergence of AI and Bitcoin mining is set to redefine the industry. Companies diversifying into AI saw substantial gains in 2024, while traditional miners lagged. The report predicts that AI integration will make mining operations more efficient and sustainable, encouraging a broader range of institutional investments.
Ethereum: The Next Institutional Favorite
Ethereum is expected to take center stage in 2025 as an “institutional darling.” With 28% of ETH staked, 7.5% locked in smart contracts, and growing utility as a fee payment and collateral asset, Ethereum is positioned for significant growth. Analysts foresee its unique value proposition appealing to traditional investors.
Stablecoins: A $500 Billion Market in 2025
Legislation surrounding stablecoins and digital asset markets is anticipated under the pro-crypto U.S. administration. Bernstein predicts the stablecoin market will exceed $500 billion in 2025, fueled by adoption in cross-border B2B payments and remittance solutions.
Regulatory Tailwinds and New Market Opportunities
With the U.S. Securities and Exchange Commission (SEC) potentially withdrawing or settling cases against crypto firms, a favorable regulatory environment could lead to:
- Increased crypto IPOs, driving market optimism.
- Tokenization of equity markets for 24/7 blockchain-based trading.
- Expansion of crypto products by banks and asset managers.
Innovations at the Intersection of AI and Crypto
Bernstein highlights key advancements at the nexus of AI and blockchain, including:
- Decentralized AI-focused blockchains for compute and storage.
- AI-integrated crypto wallets and “proof of human” authentication systems.
- Tokenized AI agents fostering innovation across industries.
