- Before the next technical update, Ethereum experts anticipate comparatively strong implied volatility and optimism.
- Although bitcoin miners are making money right now, Bitfinex experts predict a more significant decline in Q1 2025.
- The launch of Ripple's RLUSD stablecoin opens the door for XRP to become more useful and widely used.
- Following seven days of losses, Bitcoin, Ethereum, and XRP saw a modest increase on Friday.
Despite losing all of their value over the previous seven days, Bitcoin (BTC), Ethereum (ETH), and XRP saw a modest increase on Friday. According to experts, there will likely be a correction in Bitcoin in Q1 2025, and both BTC and ETH will experience higher-than-normal volatility the following week.
TradeNation’s head of brokerage solutions, Anthony Rousseau, gave FXStreet his prediction for Bitcoin in 2025. For both Bitcoin and Ethereum, Rousseau forecasts increased implied volatility (IV). “In 2025, we anticipate that both Bitcoin and Ethereum’s implied volatility (IV) will continue to be high due to market adoption, regulatory changes, and continuous geopolitical events. “The nearly fourfold increase in trade volume for Derive.xyz over the last year demonstrates the growing complexity and involvement in the options market,” he said.
The pattern indicates that traders are both optimistic about Ethereum’s impending technical upgrade and preparing for volatility. According to Rousseau, Ethereum is still in a strong position to overtake it in DEX measures by 2025. Ethereum’s robust network effect may improve its scalability and developer and trader appeal.
Ethereum may have a rebound in total value locked (TVL) and user activity if these enhancements come to pass, regaining its lead over Solana in the decentralized exchange (DEX) market, according to Rousseau.
Bitcoin is preparing for a significant decline.
Analysts at Bitfinex continue to predict a drop in the biggest cryptocurrency, despite Bitcoin’s latest all-time high and a healthy-looking cryptocurrency market.
The wider tightening of supply and bullish sentiment among miners indicate that Bitcoin is well-positioned for further gains in the medium term, even though a deeper Q1 2025 pullback is still possible,” Bitfinex analysts told FXStreet.
Even while miners are making money right now, the feeling may change after they sell their stocks to fund operations, the experts noted. Miners are sitting on unrealized earnings and are in a fantastic position right now.
With the public launch of RLUSD, XRP anticipates gains.
In an exclusive interview with FXStreet, Simon McLoughlin, CEO of Uphold, stated that the industry’s market value may increase as stablecoin frameworks become more solidified.
By 2029, McLoughlin projects that the market capitalization of stablecoins would surpass $3 trillion.
Since 98 of the top 100 institutions have already made investments in blockchain technology, stablecoins are providing a viable substitute that is revolutionizing cost, speed, and efficiency in the financial industry. The biggest banks in the world are subtly adopting stablecoins—not in response to cryptocurrency fads, but rather as a basic advancement in fintech.
Citing the example of Ripple, the executive claims that the introduction of the RLUSD stablecoin to the general public on Ethereum and the XRPLedger might lead to a large increase in financial transactions.
Even if Bitcoin is experiencing a downturn, more usefulness and acceptance could spur advances in XRP.
As of this writing, XRP is trading at $2.3289, Ethereum is stable above $3,300, and Bitcoin is hovering around $95,000.
FAQ
Ethereum’s upcoming technical upgrades and XRP’s increased utility through the RLUSD stablecoin are driving optimism. Meanwhile, Bitcoin faces potential corrections due to anticipated miner sell-offs and market trends projected for Q1 2025.
According to experts, factors like market adoption, regulatory changes, and geopolitical events are contributing to high implied volatility (IV) for Bitcoin and Ethereum. This trend is expected to persist through 2025.
The launch of Ripple’s RLUSD stablecoin enhances XRP’s functionality and adoption by enabling faster, more cost-effective financial transactions. This development may lead to increased usage and value for XRP, as highlighted by Uphold’s CEO, Simon McLoughlin.
Ethereum’s upgrades could boost scalability, attract more developers and traders, and increase activity in decentralized exchanges (DEX). This rebound in total value locked (TVL) may help Ethereum regain its lead over competitors like Solana.
While Bitcoin recently reached an all-time high, analysts at Bitfinex anticipate a significant decline in Q1 2025 due to miner activity and broader market corrections. However, bullish sentiment remains in the medium term, driven by tightening supply and optimistic miners.
