- Bull run has been driven by favorable macroeconomic conditions, the U.S. presidential election, and growing institutional adoption
- Report claimed that Bitcoin [BTC] could possibly surge to $150,000, with Ethereum [ETH] hitting $8,000
The market’s momentum has been building since the start of the year. In fact, the total cryptocurrency market capitalization has risen by 4.21% to $3.41 trillion. Trading volumes have also spiked by 18.20%, with total valuations hitting $114.86 billion.
Now, Steno Research has identified this as the initial stage of a broader bull cycle. It is anticipating that multiple tokens will hit record highs, with key assets like BTC and ETH entering crucial price discovery phases.
Favorable market conditions and the “Trump Effect”
According to Steno Research, a supportive economic climate and the upcoming inauguration of Donald Trump as the 47th president of the United States, known for his pro-crypto position, could provide a major boost to the market rally.
The “Trump effect” was already evident in November 2024, when Bitcoin [BTC] surged to a new all-time high of $108,000 following his election victory, peaking in December. With discussions around a potential Bitcoin Reserve gaining traction, this could further fuel the anticipated market surge.
Steno Research attributed the expected rally to multiple factors, particularly benefiting Bitcoin and Ethereum [ETH]. The report noted,
“An unprecedentedly favorable regulatory environment for cryptocurrencies, a supportive macroeconomic climate marked by declining interest rates and improved liquidity, and the historically strong post-Bitcoin-halving performance.”
Additionally, Steno forecasted U.S.-based Bitcoin and Ethereum exchange-traded funds (ETFs) hitting new milestones, with BTC and ETH ETFs projected to reach $48 billion and $28.5 billion, respectively, in assets under management. The greater familiarity among institutional investors with these assets is expected to drive these inflows.
Source: Steno research
“With institutional adoption set to reach unprecedented levels, inflows into Bitcoin and Ethereum ETFs will continue to grow.”
The hike in conversations around ETFs for other tokens can also contribute to broader market’s growth, implying an expansion beyond just the top two assets.
BTC, ETH, and altcoins ready for significant gains
Steno Research also claimed that Bitcoin [BTC] and Ethereum [ETH] may be set to record huge gains, with BTC projected to hit an all-time high of $150,000 and ETH climbing to $8,000. These predictions seemed to be tied to previously outlined factors.
Steno also pointed to an upcoming altcoin rally, one driven by a rising ETH/BTC ratio and a decline in Bitcoin’s dominance.
Here, it’s worth noting that the ETH/BTC ratio measures Ethereum’s value relative to Bitcoin. A higher ratio indicates increasing ETH value and has historically preceded altcoin surges.
Steno predicted that the ETH/BTC ratio will reach “at least 0.06,” flagging off the start of a broader altcoin run. Simultaneously, Bitcoin’s dominance is expected to fall to 45%, further paving the way for altcoin growth.
The decentralized finance (DeFi) sector is also expected to thrive. According to the aforementioned report, the Total Value Locked (TVL) across decentralized protocols will soar to $300 billion – Nearly doubling the previous all-time high of $180 billion set in 2021.
Source: Steno research
This surge in TVL highlights the potential for a massive influx of liquidity into decentralized protocols – A clear indication of growing confidence in the sector’s long-term prospects.
Market gearing up amid liquidity surge
Optimism in the market is already taking shape, with the same evidenced by the uptick in Stablecoin Exchange Reserves.
In fact, by 31 December 2024, Binance’s stablecoin reserves had risen to $44.5 billion, indicating a notable liquidity pool ready to support asset purchases that could begin at any time.
Source: CryptoQuant
Historically, an increase in stablecoin reserves on exchanges means that the market is preparing for a major move – Aligning with the expectations outlined in the Steno report.
