Cryptocurrency analyst Miles Deutscher predicts the main altcoins rally will emerge in the second half of 2025, with AI-focused projects leading the charge.

Current macro conditions suggest a delayed market cycle, though he notes traditional altcoin seasonality favors the first half of the year, opening the possibility for two distinct rally periods.

His outlook maps a year where artificial intelligence, DeFi utilities, and regulatory changes reshape the crypto landscape.

Deutscher sets a Bitcoin price target of $140,000 for 2025, taking a measured stance compared to more bullish predictions of $200,000 or higher.

While he believes Bitcoin will eventually reach $1 million, his near-term outlook focuses on steady growth driven by institutional adoption and potential government reserves, rather than explosive price movement.

Market Structure and Price Targets

Bitcoin’s market dominance appears to have peaked at 61.5% for this cycle, according to Deutscher.

– Advertisement –

While Bitcoin may see periods of outperformance, he expects altcoins to capture an increasing share of total crypto market value through 2025.

This shift could create opportunities across the broader crypto market as capital flows toward alternative assets.

The ETH/BTC ratio may reach a turning point in 2025. Though Deutscher made similar predictions last year, he maintains his view that Ethereum will outperform Bitcoin.

He backs this outlook with observations about Ethereum’s growing role in DeFi and the potential impact of regulatory clarity under the new administration.

Looking at specific price levels, Deutscher calls for Bitcoin to reach $140,000 in 2025. He explains this target balances optimism with reality, noting that while higher predictions exist, the next 12 months might not support moves beyond $200,000.

His analysis factors in both technical market cycles and fundamental developments like institutional adoption and potential government purchases.

AI and DeFi Sector Leadership

AI projects, particularly those focused on autonomous agents, will shape the crypto market in 2025, Deutscher expects.

He points to a coming transformation in DeFi and on-chain trading, where AI agents will automate and optimize trading strategies.

This evolution could push multiple AI-focused projects above $1 billion in market value, marking a new phase in crypto automation.

DeFi utility tokens like Chainlink (LINK), Aave (AAVE), Ethena (ENA), and Uniswap (UNI) stand to benefit from the Trump administration’s policies.

Deutscher believes the market has not yet priced in how new regulatory approaches might benefit income-generating DeFi protocols.

These platforms, which offer real yields and practical applications, could see renewed interest as regulatory clarity emerges.

Real World Assets (RWA) will grow into a leading market theme by year-end. BlackRock CEO Larry Fink’s continued push for asset tokenization, combined with supportive policies under the Trump administration, creates ideal conditions for RWA growth.

This trend connects traditional finance with cryptocurrency markets, potentially bringing new capital into the sector.

Regulatory and Institutional Catalysts

Several cryptocurrency ETF approvals could follow Bitcoin and Ethereum in 2025. Deutscher expects Solana (SOL) and XRP to lead this next wave, citing strong market demand for these assets.

While other cryptocurrencies like Litecoin (LTC) and Hedera (HBAR) may qualify for ETF approval, he believes investor interest will focus on SOL and XRP products.

The United States might establish a strategic Bitcoin reserve in 2025, Deutscher predicts. He notes early preparations are underway, and this move could trigger a chain reaction among other nations.

A U.S. Bitcoin reserve would set a precedent for sovereign adoption, potentially leading more countries to add Bitcoin to their balance sheets.

This institutional momentum builds on existing trends. The analyst sees 2025 as a year when government and corporate Bitcoin adoption accelerates, creating a foundation for long-term market growth.