Prediction markets Kalshi and Polymarket forecast a promising year for cryptocurrency in 2025. Insights suggest that both Bitcoin and Ether could reach unprecedented heights, with BTC and ETH projected to hit at least $125,000 and $5,000, respectively, according to Kalshi. Polymarket, meanwhile, sets a 50% probability of Bitcoin hitting $120,000 by March.
Additionally, there’s optimism for the approval of various cryptocurrency ETFs by U.S. regulators. Polymarket places the likelihood of ETFs for XRP, Solana, and Litecoin at 75%, 69%, and 51% chances, respectively, by mid-year. However, Dogecoin lags with a 22% chance.
Speculation also revolves around U.S. President-elect Donald Trump’s potential establishment of a national Bitcoin reserve. Kalshi foresees a 59% possibility of this event during his term, whereas Polymarket is more conservative, putting early prospects at 29%.
Despite these bullish predictions, traditional futures markets are more restrained. The Chicago Mercantile Exchange anticipates Bitcoin prices at roughly $98,000 and Ether at $3,500 in the first quarter of 2025, marking a noticeable jump from their current valuations but still below prediction market estimates.
Prediction markets function by allowing users to buy and sell contracts based on anticipated outcomes of events, often showing more accuracy compared to traditional polling methods. This skill in forecasting was evidenced in the runup to the recent US elections where they accurately predicted key results.
