Cryptocurrency market outlook april 2025
L2s as a collective will generate more economic activity than Alt L1s over 2025. L2 fees as a % of Alt L1s fees (currently mid-single digits) will end the year above 25% of aggregate Alt L1 fees https://darklandpromotions.com/. L2s will approach scaling limits early in the year, leading to frequent surges in transaction fees that will require a change to gas limits & blob market parameters. However, other tech solutions such as (e.g., Reth client or altVMs like Arbitrum Stylus) will provide greater efficiencies for rollups to keep transaction costs at usable levels. -Charles Yu
This year was marked by two major uplifts: the launch of spot-based Bitcoin ETPs in the United States, and the election of Donald Trump for a second, non-consecutive presidential term. Between those events, the market ranged in volatile, indecisive sideways chop for 237 days. While these events served as both catalysts and backdrops for the market in 2024, 2025 will see an expansion of market breadth and narratives. Without further ado, below are some of Galaxy Research’s crypto market predictions for 2025.
Amid climate-focused policies and investor scrutiny, the energy consumption of Proof-of-Work networks, such as bitcoin, remains a lightning rod for criticism. Although renewables and more efficient mining methods have somewhat mitigated bitcoin’s environmental impact, perceptions of unsustainable practices persist. This can dampen demand, especially among ESG-centric institutions.
The presence of CBDCs, in turn, creates a “gateway effect” for those who might otherwise shy away from crypto. As businesses and consumers become accustomed to transacting in digital currency, they find it less intimidating to explore tokens such as bitcoin, ether or stablecoins. While CBDCs could diminish some of the competitive advantages of decentralization, such as censorship resistance, many believe that the two systems will coexist, serving different financial and technological niches.
Cryptocurrency market trends february 2025
The crucial Fibonacci level of $0.00012 will be significant for SHIB bullish momentum. Continued development and community support will be key drivers, alongside potential integrations and partnerships.
The U.S. spot Bitcoin ETPs will collectively cross $250bn AUM in 2025. In 2024, the Bitcoin ETPs collectively took in more than $36bn in net inflows, making them the best ETP launch as a cohort in history. Many of the world’s major hedge funds bought the Bitcoin ETPs, including Millennium, Tudor, and D.E. Shaw, while the State of Wisconsin Investment Board (SWIB) bought a position, according to 13F filings. After just 1 year, the Bitcoin ETPs are only 19% away ($24bn) from flipping the AUM of all the U.S. physical gold ETPs. -Alex Thorn
In January, the DeFAI (Decentralized Finance + AI) sector initially outperformed other narratives, with a 90% return by mid-month. However, by the end of January, DeFAI tokens had corrected significantly, closing the month down 10% from January 1.
The crucial Fibonacci level of $0.00012 will be significant for SHIB bullish momentum. Continued development and community support will be key drivers, alongside potential integrations and partnerships.
The U.S. spot Bitcoin ETPs will collectively cross $250bn AUM in 2025. In 2024, the Bitcoin ETPs collectively took in more than $36bn in net inflows, making them the best ETP launch as a cohort in history. Many of the world’s major hedge funds bought the Bitcoin ETPs, including Millennium, Tudor, and D.E. Shaw, while the State of Wisconsin Investment Board (SWIB) bought a position, according to 13F filings. After just 1 year, the Bitcoin ETPs are only 19% away ($24bn) from flipping the AUM of all the U.S. physical gold ETPs. -Alex Thorn
Cryptocurrency market analysis april 2025
The middle of April saw XRP enter a consolidation phase, fluctuating between $2.05 and $2.25. Despite the lack of aggressive upward momentum, the price remained stable as institutional interest in XRP gained traction. A notable development was the announcement by CME Group, one of the world’s largest derivatives marketplaces, to introduce futures contracts for XRP, set to begin trading in May. This signaled institutional endorsement and positioned XRP for deeper integration into regulated investment platforms.
This time, the non-farm data release is still far from the next Fed interest rate meeting (May 6-7), so as long as the data doesn’t show significant anomalies, the impact on crypto market trends will be limited.
The final week of April saw Dogecoin break out of its consolidation range. After the formal launch of the Dogecoin ETP by the European asset manager, investor interest spiked. DOGE surged to a monthly high of $0.1928 on April 26. Though the asset faced mild resistance and profit-booking afterward, it maintained a strong close near $0.1791—above key psychological levels and reflecting sustained interest.
This sharp decline was largely influenced by macroeconomic uncertainties, including heightened geopolitical tensions and weak economic indicators from major global economies. Additionally, short-term profit booking by traders and concerns over regulatory pressure on centralized exchanges fueled panic selling. Liquidations across leveraged positions in the derivatives market further intensified the decline.