What to Expect From Bitcoin and Crypto Markets in the Second Half of 2025

Cryptocurrencies are entering a new era in 2025. This year has seen significant strides in both regulatory clarity and integration with traditional finance. President Donald Trump’s move to create a national Bitcoin reserve and the Senate’s passing of the GENIUS Act are just a few examples. Meanwhile, traditional finance has welcomed the crypto space more openly, evidenced by the $14.4 billion in net inflows to spot bitcoin ETFs so far this year (as of July 3), according to Farside Investors.

Bitcoin has outpaced the broader equity market this year—up approximately 15%, compared to the S&P 500’s 7% gain—closing in on its all-time high of nearly $112,000 from May. Investors are now focused on the road ahead for the rest of 2025.

Are Bitcoin Treasury Companies the Future?

One of the standout developments in 2025 has been the rise of “bitcoin treasury” companies—businesses that hold a substantial portion of their reserves in bitcoin. These holdings are often justified as a hedge against inflation or as part of a long-term strategy to embrace bitcoin as a neutral global reserve asset. Strategy (formerly MicroStrategy), led by Michael Saylor, has pioneered this model, even going as far as issuing stock and bonds to purchase more bitcoin.

They’re no longer alone. Firms like Metaplanet and Twenty One have joined the movement. In total, about 135 publicly traded companies now list bitcoin as part of their reserves.

Stephen Cole, CEO of Castle (a bitcoin treasury service provider), believes the second half of 2025 will see even greater adoption. “This is a turning point for bitcoin’s role in corporate finance,” he said, pointing to a global wave of institutional and corporate alignment with bitcoin. Cole also predicts that major tech corporations will begin outlining bitcoin strategies by year-end, shifting the conversation from if to when companies should add bitcoin to their balance sheets.

Can Altcoins Stay Relevant?

The rise of bitcoin treasuries has sparked concerns that investor appetite for altcoins may diminish. Traditionally, altcoins have attracted interest either as high-beta plays on bitcoin or for offering use cases bitcoin doesn’t support.

David Lawant, Head of Research at FalconX, notes that bitcoin-focused companies and newer financial instruments like options may satisfy much of the demand previously met by altcoins. Still, he believes that the crypto cycle has more to offer. “Altcoins with unique and functional value propositions still have room to stand out,” said Lawant.

Upcoming regulatory developments, such as the crypto market structure bill and looser restrictions on decentralized finance (DeFi) innovation, could provide renewed momentum for the altcoin sector.

More Crypto ETFs and Public Listings on the Horizon

For investors seeking exposure through public markets, bitcoin treasury companies aren’t the only avenue. Spot ETFs for bitcoin and ether are already live, and according to Bloomberg analyst James Seyffart, more digital asset ETFs could be on the way. Improvements to existing ETFs—like allowing in-kind redemptions and staking—are also expected.

Seyffart believes that most pending ETF applications (19b-4 forms) will likely gain approval before year-end. “We could see 10 or more unique crypto assets represented in ETF form by the end of 2025,” he noted.

The strong performance of Circle’s IPO earlier this year has also encouraged other crypto-native companies to consider going public. Firms like Galaxy, eToro, Gemini, Kraken, Consensys, and Ripple may be next to test the waters.

Ethereum’s Critical Crossroads

Ethereum (ETH), the world’s second-largest cryptocurrency, has underperformed compared to bitcoin and rival blockchains like Solana and BNB Chain in recent years. Despite this, a new wave of Ethereum supporters are positioning ETH as “digital oil,” essential to powering blockchain infrastructure.

Skeptics remain unconvinced that Ethereum’s adoption by major platforms like Coinbase or stablecoin issuers will directly boost the price of ether itself. Still, Lawant is cautiously optimistic. “There’s been a notable shift in sentiment around Ethereum,” he said, highlighting that it’s well-positioned to benefit from its deeper ties to traditional finance. Ethereum’s active CME futures and spot ETF listings back this up.

He also pointed out that ether is still relatively underrepresented in institutional portfolios. The ability to stake ether through ETFs could help bridge that gap and accelerate adoption.

According to CoinGecko, ETH has dropped about 85% relative to BTC since peaking at 0.1475 BTC per ETH roughly eight years ago. Still, if institutional interest increases, Ethereum could have significant upside potential left.