Crypto Bulls are Back: 2025 Predicted to be a Banner Year for Bitcoin and Co.

It seems like the crypto community is feeling pretty optimistic about the future. According to a review of data from popular prediction markets Polymarket and Kalshi, bettors are putting their money on 2025 being a huge year for cryptocurrency markets. We’re talking record highs for Bitcoin (BTC) and Ether (ETH), and potentially even some big developments in the world of crypto exchange-traded funds (ETFs) and strategic Bitcoin reserves.

Bitcoin and Ether: The Stars of the Show

Traders on Kalshi are giving BTC and ETH more than 60% odds of reaching at least $125,000 and $5,000 in 2025, respectively. That’s a pretty significant jump from their current record highs of around $108,300 and $4,720. Meanwhile, Polymarket is setting the odds of BTC touching $120,000 before the end of March at 50%. It’s worth noting that these are just predictions, but it’s definitely interesting to see where the market is placing its bets.

ETFs: The Next Big Thing?

Prediction markets are also anticipating some big moves in the world of ETFs. Polymarket bettors are giving XRP, Solana, and Litecoin ETFs probabilities of around 75%, 69%, and 51%, respectively, of being approved by July 31. Dogecoin, on the other hand, is looking a bit less likely, with only around 22% odds of an ETF approval by then. It’s not hard to see why ETFs are generating so much interest – they could make it a lot easier for mainstream investors to get in on the crypto action.

A National Strategic Bitcoin Reserve: Could it Happen?

One of the more intriguing predictions coming out of Kalshi is the possibility of a national strategic Bitcoin reserve being established in the US. With a 59% chance of happening during Donald Trump’s presidency, this is definitely an idea that’s generating some buzz. Polymarket, on the other hand, is a bit more skeptical, assigning only 29% odds of Trump creating such a reserve in his first 100 days in office. It’s worth noting that prediction markets have been known to be surprisingly accurate in the past – they correctly forecasted Trump’s win in the US presidential race, as well as his party’s sweep of the US House and Senate.

Conflicting Signals: What do Conventional Futures Markets Say?

While prediction markets are anticipating some big gains for cryptocurrencies in 2025, conventional futures markets are telling a slightly different story. Traders on the Chicago Mercantile Exchange (CME) are pricing in March spot prices of roughly $98,000 for BTC and $3,500 for ETH – still up from current prices, but not quite as bullish as the prediction markets. It’s not uncommon for different markets to be sending conflicting signals, but it’s definitely something to keep an eye on as we head into the new year.