Author: James Hunt, The Block; Compiled by: Five Baht, Golden Finance

As we enter the first full week of 2025, analysts at research and brokerage firm Bernstein have their thoughts on the year ahead. Making 10 predictions as cryptocurrencies enter what they describe as an “infinite era.”

The Infinite Era is “a long period characterized by constant evolution and widespread acceptance, whereby eventually cryptocurrencies are no longer controversial – just part of a financial system built for the new smart era,” according to Gautam analysts led by Chhugani wrote in a note to clients on Monday. "Don't expect a boom-bust pattern," he said. “Cryptocurrencies are now firmly on the radar of businesses, banks and institutions, and woven into the foundation of our financial system.”

After President-elect Donald Trump makes strategic Bitcoin Following the Bitcoin Reserve campaign pledge, analysts reiterated their expectations for a Bitcoin price target of $200,000 by the end of 2025.

While analysts are unsure whether actual purchases will begin this year as a legislative priority, they do expect corporate funding adoption to continue growing, with inflows expected to exceed 2025 50 billion, compared with $24 billion last year. Analysts say MicroStrategy is likely to lead demand again, followed by Bitcoin miners expanding capital plans and small and mid-sized companies looking to emulate Michael Saylor's model.

They also predict that U.S. spot Bitcoin ETFs will attract more than $70 billion in net inflows — double the roughly $35 billion in 2024 — largely from hedge funds, banks and wealth advisors. Institutional adoption accelerated, with shareholdings soaring to 40%, compared with only 22% of ETF investments in the third quarter of last year. Additionally, analysts expect that the Bitcoin ETF whitelisting process will continue, leading universal and private banking platforms will continue to exist, Bitcoin and Ethereum ETF momentum will continue, and a Solana ETF may emerge before the end of the year.

“The announcement of a U.S. Bitcoin reserve will trigger a global rush by sovereigns to buy Bitcoin. Our forecast for a Bitcoin price of $200,000 does not take into account demand — only institutional and corporate demand,” Chhugani said. “As corporate treasuries and Bitcoin ETFs become a significant part of Bitcoin ownership, we expect Bitcoin ownership to become more entrenched. Therefore, if Bitcoin lingers below $100,000 for longer, Bitcoin will trade to long-term holders such as MicroStrategy and Bitcoin ETF holders”

In Bitcoin., analysts said miners "must" continue to shift production capacity to artificial intelligence to create value. There is a significant difference in the performance of AI-diversified companies and “pure-play” Bitcoin miners in 2024. Analysts note that AI diversified companies such as Core Scientific and TeraWulf have posted gains of 308% and 136%, respectively, this year, while Riot Platforms and CleanSpark have lost 34% and 17%, respectively. They expect this trend to continue as “artificial intelligence changes the Bitcoin mining business model, making it more sustainable and less cyclical, leading to a broader institutional investor base.”< /p>

Continuing with the artificial intelligence theme, Bernstein analysts expect closer integration with the crypto industry this year, and the intersection of artificial intelligence and crypto is promoting innovation on multiple fronts. Key developments include decentralized AI blockchains for computation, storage, and inference, as well as “proof-of-human” authentication services, AI-integrated crypto wallets, and tokenized AI agents.

Bernstein analysts predict that the industry will usher in "unprecedented" regulatory tailwinds this year as support for cryptocurrencies comes to power, This includes possible legislation on stablecoin and digital asset market structures, as well as further clarity on the definition of “crypto securities.”

"The stablecoin bill will be considered a priority. Stablecoins further strengthen the dollar through the purchase of Treasury bonds and online distribution of digital dollars," Chhugani said. “The digital asset market structure facilitates legal clarity and licensing for exchanges, broker/dealers, including the legal status of non-custodial Defi protocols, excluding them from broker/dealer status. Finally, restrictions on crypto securities definition and allow the CFTC to conduct more oversight of most digital assets except for a small number of digital asset securities.”

Such legislation in the United States could drive substantial growth in the global stablecoin market. Analysts predict that by 2025, the global stablecoin market will be larger than 500 billion, more than double the 55% growth in 2024 to over $200 billion, as its applications extend beyond the cryptocurrency industry, especially in global cross-border B2B payments and cross-border remittance solutions.

Additionally, analysts expect the more pro-crypto SEC to withdraw or resolve existing cases with cryptocurrency companies and allow more private cryptocurrency companies Entering the public markets, the IPO will be a further positive catalyst for the market. They also expect that cryptocurrency exchanges and platforms such as Robinhood will tokenize the stock market, enabling 24/7 liquid stock market trading based on blockchain technology, and banks willBanks and asset management companies will also launch more cryptocurrency-related products.

Finally, Chhugani said that despite last year’s poor performance, Ethereum is expected to become the next “institutional darling” in 2025. Analysts say that 28% of Ethereum is pledged, 3% is absorbed by ETFs, and 7.5% is locked in smart contracts. Ethereum’s limited supply and utility as a fee payment and collateral asset for layer 1 and layer 2 chains making it attractive to traditional investors looking for intrinsic value.