The cryptocurrency market is expected to enter a stabilization phase next year as institutional participation increases, reducing price volatility. Despite concerns that the year-end rally may fade and prompt further declines, market participants are bullish that Bitcoin could hit an all-time high next year. Citigroup and JPMorgan Chase have projected Bitcoin’s all-time highs at $189,000 and $170,000 respectively next year.
Grayscale has forecast that the peak could occur in the first half of next year. Citigroup raised its Ethereum price target for next year to $4,304–$5,132, about 40–45% higher than current levels; it noted that Ethereum’s staking yields, unlike Bitcoin, could be attractive to institutional investors.
They noted that if the Clarity Act is finally enacted early next year, ETF inflows would be likely to increase further. Especially next year, the growth of the stablecoin and real-world asset tokenization (RWA) markets is expected to accelerate capital inflows into the crypto space. While cash-settled crypto ETFs have opened a channel for institutional money, stablecoins and related infrastructures are viewed as core enablers to bring crypto into the regulated financial ecosystem.
The stablecoin market has surged since the Genius Act passed in July this year, rising from $203 billion last year to $317.3 billion this year, a rise of over 56%. Similarly, the RWA market grew from $15.2 billion to $18.8 billion over the same period. Fidelity says the four-year cycle of Bitcoin, characterized by periods of rapid price swings every four years, remains valid, and that next year could see a correction ahead of the next halving. It warned that if this year’s peak was $120,000, a crypto winter could materialize next year, and it projected Bitcoin’s price range at $65,000 to $75,000. Experts cited other variables, including policy delays, macro factors such as interest rates, the dollar, and liquidity, regulatory uncertainty, and the durability of ETF inflows.
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