What to Expect From Bitcoin and Crypto Markets in the 2nd Half of 2025

It’s been a tremendous year so far for bitcoin and the crypto market.

Cryptocurrencies have gained greater acceptance in Washington, with President Donald Trump establishing a strategic bitcoin reserve and the Senate passing the GENIUS Act. They’ve also found favor with traditional finance; spot bitcoin exchange-traded fund net inflows in 2025 have totaled $14.4 billion through July 3, according to data from Farside Investors.

Bitcoin (BTCUSD) has gained about 15% since the start of year, outpacing the S&P 500’s rise of 7%. It isn’t far from the all-time high of near $112,000 set in May, edging closer to the bullish year-end targets analysts set at the start of the year.

Here’s what crypto investors will be watching for in the second half of the year.

Will Bitcoin Treasuries Go Mainstream?

So-called bitcoin treasury companies have been the talk of the town in 2025. A bitcoin treasury company is a business that holds a substantial portion of its reserve assets in bitcoin, often as an inflation hedge or in anticipation of bitcoin’s development as a global, apolitical reserve asset. Some companies, like Michael Saylor’s Strategy (MSTR), take it a step further by issuing shares or debt to accumulate bitcoin.

Strategy (formerly MicroStrategy) has been at this for years, but there are several new players entering the arena, including Metaplanet and Twenty One. There are now an estimated 135 public companies that hold bitcoin as a reserve asset.

“The latter half of 2025 will mark a pivotal moment for bitcoin’s adoption as a treasury asset, driven by a convergence of global market trends, shifting corporate strategies, and institutional validation,” Stephen Cole, who is the co-founder and CEO of bitcoin treasury solution provider Castle, told Investopedia. “We’re already seeing bitcoin treasury companies emerge in every major global capital market and [I] expect that trend to continue,” he said.

Cole expects larger companies, including well-known tech giants, to begin establishing bitcoin positions and defining their allocation strategies by the end of the year. “For (small and medium sized businesses) and large corporations alike, the question of whether to acquire bitcoin is quickly going from if to when,” Cole added.

Do Altcoins Stand a Chance Against Bitcoin?

Some have wondered if bitcoin treasury companies will sap demand for smaller, more volatile altcoins.

“Demand for altcoins has historically stemmed from two main sources: (1) beta exposure to bitcoin, and (2) differentiated use cases that bitcoin’s blockchain doesn’t fulfill,” David Lawant, Head of Research at FalconX, told Investopedia. “What we’re seeing now is that bitcoin treasury companies and broader access to instruments like options can meet that first demand more efficiently and with less friction.”

However, Lawant says bitcoin treasuries only satisfy some of the criteria that drive demand for altcoins. He also cautioned that “the cycle is likely far from over,” and in his view, there is still time for certain types of alternative crypto assets to shine.

“Altcoins with a strong and distinct fundamental value proposition still have plenty of room to perform,” said Lawant. “Regulatory shifts such as the crypto market structure bill and a more permissive stance toward decentralized finance (DeFi) experimentation could unlock powerful new trends.”

More Crypto ETFs and IPOs

Of course, bitcoin treasury companies aren’t the only way to gain exposure to bitcoin and other crypto assets via public markets. Spot ETFs for bitcoin and ether already exist, and according to Bloomberg analyst James Seyffart, similar products could be on the way for other digital assets. Tweaks to existing ETFs, such as in-kind redemption and staking, are also likely.

“I think we will see the vast majority, if not all, of the currently filed 19b-4s obtain approval by the end of the year,” Seyffart told Investopedia. “That includes in-kind [redemptions] and staking and something like 10 individual assets [that have] attempted to get an ETF.”

Additionally, the undeniable success of the IPO for stablecoin issuer Circle (CRCL) has not gone unnoticed. Galaxy (GLXY) and eToro (ETOR), which are both heavily involved in the crypto market, also debuted earlier this year. According to Nate Geraci, President of The ETF Store, there could be more IPOs on the way from the likes of crypto exchanges Gemini and Kraken, and blockchain technology companies Consensys and Ripple, among others.

Ethereum’s Make or Break Moment?

Finally, ether (ETHUSD), the native cryptocurrency of the Ethereum blockchain and long the second-largest crypto asset behind bitcoin, may also be at a critical point in its history. It has underperformed both bitcoin and some of its smaller competitors, such as Binance Smart Chain and Solana, in recent years.

A recent report from a group of Ethereum proponents gained attention for comparing ether to digital oil. Still, some investors doubt that the use of Ethereum’s tech by the likes of Coinbase Global (COIN) and stablecoin-issuers will necessarily accrue value to the ether asset itself over the long term.

That said, Lawant believes there are still plenty of reasons to not count out ether quite yet.

“There have been clear signs over the past few months that sentiment is shifting in the Ethereum ecosystem,” said Lawant. “Ethereum also benefits from being more closely tied to traditional capital markets, which is a key price driver in today’s environment. That’s evident in its active CME futures market and the launch of spot ETFs.”

Ether “also remains underowned by many institutional investors,” says Lawant. Analysts say the addition of staking to spot ether ETFs could help improve institutional adoption. “If the current developments play out as expected, there’s meaningful room for a catch-up.”

Ether is down about 85% relative to bitcoin since hitting an all-time high of 0.1475 ether per bitcoin roughly eight years ago, according to data from CoinGecko.