VanEck predicts Q1 2025 crypto correction before Q4 all-time highs
The asset manager said in a Dec. 13 blog post that VanEck expects to reach a medium-term high in the first quarter of 2025 before VanEck rises to an all-time high by the end of the year.
“At the peak of the cycle, we project Bitcoin (BTC) trading around $180,000, Ethereum (ETH) trading above $6,000,” VanEyck said in a blog post by the head of digital asset research.
“Other popular projects, such as Solana (SOL) and Sui (SUI), may exceed $500 and $10, respectively,” said the post.
Source: VanEck
Related: 2025 ‘Demand Shock' Will Drive Bitcoin Price Up – Signum
Before reaching these highs, VanEck expects to see “a 30% retracement in BTC, with altcoins experiencing steep declines of up to 60% as the market tightens over the summer.”
Alternative cryptocurrencies or “altcoins” refer to digital assets other than Bitcoin (BTC).
VanEck said that a sustained funding increase of more than 10% on the BTC perpetual futures exchange represents a “presumptive profit”.
In July and September, Van Eyck Siegel said he expects BTC to reach $2.9 million per coin by 2050 and Ether (ETH) to reach $22,000 per token by 2030.
Source: VanEck
2025 market drivers
Other analysts observe similar phenomena. According to Ryan Lee, chief analyst at Bitgate Research, BTC price could sink by 30% before continuing its bearish run.
“Historical data trends show that Bitcoin can still correct up to 30% before reaching the cycle level,” the analyst told Cointelegraph on November 27.
This is partly because US markets have been right after a presidential inauguration. President-elect Donald Trump will take office on January 20, 2025.
VanEck also predicts that by 2025, the US will adopt a Bitcoin strategic reserve and regulators will approve more crypto exchange-traded funds (ETFs), which will accelerate institutional crypto adoption.
“Under the new SEC leadership, several new areas of crypto ETPs will be approved. Ethereum ETPs include stocks, while both Ethereum and Bitcoin ETPs allow in-kind transactions and redemptions,” VanEyck said.
On December 12, crypto-focused asset manager Sygnum Bank said that institutional adoption could trigger a “demand shock” next year, driving up BTC spot prices.
Meanwhile, the world's largest asset manager BlackRock says up to 2% portfolio allocation is “reasonable” for investors looking to hold BTC.
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