In a recent market outlook update, Bitwise has stood firm on its year-end 2025 Bitcoin price forecast of $200,000, citing strong institutional adoption and sustained demand. However, the asset manager has revised downward its expectations for Ethereum (ETH) and Solana (SOL) due to weaker-than-expected performance and persistent macroeconomic headwinds.
This mid-year reassessment reflects a shifting landscape within the crypto market—one where Bitcoin continues to dominate investor interest, while altcoins struggle to regain momentum despite broader technological advancements.
Bitcoin Outlook: $200K Target Still in Play
Bitwise Chief Investment Officer Matt Hougan reaffirmed the firm’s bullish Bitcoin stance in a July 1 research note, emphasizing the growing structural support behind BTC’s price trajectory.
“We’re holding firm to our BTC $200k prediction, as there is simply too much institutional demand for BTC to keep prices flat for long,” Hougan wrote.
Bitcoin reached an all-time high of $112,000 in May 2025, driven by robust inflows into spot Bitcoin ETFs, increasing corporate treasury allocations, and the U.S. government’s move to establish a national Bitcoin reserve. These developments have laid a strong foundation for continued price appreciation in the second half of the year.
👉 Discover how institutional adoption is reshaping the future of digital assets.
Year-to-date, spot Bitcoin ETFs have attracted $13.8 billion in net inflows**, and Bitwise anticipates total inflows could surpass **$35 billion by year-end—matching and potentially exceeding 2024’s record. With major wealth management platforms expanding access to crypto products, the firm expects even greater capital deployment from pension funds, endowments, and asset managers.
The growing integration of Bitcoin into traditional finance is no longer speculative—it’s structural. As more institutions treat BTC as a strategic reserve asset, demand is expected to remain resilient despite short-term volatility.
Ethereum and Solana Face Headwinds in 2025
While Bitcoin continues its upward trajectory, Ethereum and Solana have underperformed significantly in 2025. Both assets have recorded negative year-to-date returns, prompting Bitwise to temper its earlier optimism.
According to Hougan and Ryan Rasmussen, Head of Research at Bitwise, two primary factors are holding back ETH and SOL: slower institutional adoption and persistent macroeconomic uncertainty, including interest rate volatility and regulatory scrutiny.
Despite their strong fundamentals—Ethereum’s leadership in decentralized applications and Solana’s high-speed blockchain—neither network has seen the same level of ETF-driven demand or corporate treasury interest as Bitcoin.
“We’re no longer confident that either ETH or SOL will hit new all-time highs this year,” the analysts noted. “The momentum simply isn’t there yet.”
However, Bitwise hasn’t abandoned hope for a second-half rebound. Catalysts such as potential spot ETH ETF approvals, increased stablecoin issuance on both networks, and the emergence of blockchain-based treasury companies could reignite investor interest.
“Rising interest in stablecoins, ETF approvals, and the emergence of ETH and SOL treasury companies can drive prices substantially higher,” Hougan added.
👉 See how emerging crypto trends are creating new investment opportunities.
Stablecoins and Tokenized Assets Gain Traction
One of Bitwise’s most accurate predictions in 2025 has been the growth of stablecoins. The firm forecasted that stablecoin market capitalization would double to $400 billion by year-end—and it’s on track.
As of mid-2025, stablecoin assets have grown by over 30% year-to-date, reaching $260 billion. This expansion has been fueled by adoption from traditional financial institutions like Mastercard and JPMorgan, which are integrating stablecoins into cross-border payments and settlement systems.
Similarly, tokenized real-world assets (RWAs) have surged from $13 billion to $25 billion in value—a near doubling. These include digitized bonds, real estate, and commodities backed by blockchain technology. Bitwise still believes the $50 billion RWA target is achievable by December 2025.
“This isn’t just crypto speculation,” said Rasmussen. “We’re seeing real-world financial infrastructure being rebuilt on blockchains.”
Other positive signals include:
- The U.S. Department of Labor lifting restrictions on crypto investments in retirement accounts.
- Coinbase’s historic inclusion in the S&P 500, signaling broader market acceptance.
- Increasing regulatory clarity in key jurisdictions, fostering innovation.
Yet not all predictions have panned out. The anticipated memecoin rally fizzled out, and Coinbase’s stock failing to breach $700 has made its rise as the most valuable brokerage unlikely this year—even after a strong post-listing surge.
Additionally, Bitwise’s forecast that nine more countries would adopt Bitcoin as a reserve asset is lagging. While the United Arab Emirates and Pakistan have announced official Bitcoin holdings, others remain silent. Still, the firm believes some nations may be accumulating BTC quietly.
“We’re not quite sure we’ll get to 18 this year, but it could be close,” Hougan and Rasmussen acknowledged.
Frequently Asked Questions (FAQ)
Q: Why is Bitwise maintaining its $200K Bitcoin price prediction?
A: Bitwise cites strong institutional demand, spot ETF inflows, corporate treasury adoption, and U.S. reserve initiatives as key drivers supporting long-term BTC price growth.
Q: Why did Bitwise lower its ETH and SOL price targets?
A: Both assets have underperformed in 2025 due to slower institutional uptake and macroeconomic pressures. Without ETF momentum or major corporate adoption, their price upside appears limited for now.
Q: Are stablecoins really growing that fast?
A: Yes. Stablecoin market cap has grown over 30% in 2025, reaching $260 billion, driven by adoption from traditional finance players like JPMorgan and Mastercard.
Q: What are tokenized real-world assets (RWAs)?
A: RWAs are physical or financial assets—like bonds or real estate—represented as digital tokens on a blockchain. Their market value has nearly doubled to $25 billion in 2025.
Q: Will more countries adopt Bitcoin in 2025?
A: While only two—UAE and Pakistan—have publicly announced reserves, Bitwise believes others may be accumulating quietly. The firm still sees potential for near-term adoption.
Q: What factors could boost Ethereum and Solana later in 2025?
A: Approval of spot ETH ETFs, increased stablecoin activity on both chains, and blockchain-native treasury initiatives could provide much-needed momentum.
Core Keywords:
Bitcoin price prediction 2025
Ethereum price forecast
Solana market outlook
spot Bitcoin ETF
stablecoin growth 2025
tokenized real-world assets
institutional crypto adoption
Bitcoin $200K prediction
👉 Explore the platforms powering the next wave of crypto innovation.