Presto Research offers a positive outlook on the leading crypto assets Bitcoin, Solana, and Ethereum, based on global liquidity expectations.

After a whirlwind year rife with many significant milestones for crypto, several analysts are looking to 2025 with considerable optimism. Among them is Presto Research. Peter Chung, Head of Research at Presto, recently offered insights into the firm’s crypto market expectations for 2025.

Bitcoin, Solana, and Ethereum Set for Higher Prices?

The key question among crypto market participants with the turn of the new year has been whether the market can sustain and perhaps even build on its 2024 momentum. On CNBC Squawk Box on December 31, Peter Chung appeared to believe so, citing the firm’s recent forecast report for 2025.

Bitcoin will surge to $210,000 in 2025, Chung asserted, to the astonishment of CNBC presenter Martin Soong. He further added that the firm expects Solana to surge to the $1,000 price point. At the same time, he noted that Ethereum was likely to gain some ground against Bitcoin, with the ETH/BTC ratio anticipated to recover to 0.05 from current levels of around 0.036.

Presto Research’s positive outlook for the crypto market in 2025 comes as the firm expects global liquidity conditions to remain favorable. Chung highlighted this in a conversation with Vantage Point Asset Management CIO Nicholas Ferres on the CNBC show.

He stressed that despite the Federal Reserve’s hawkish guidance in December 2024 projecting fewer than expected rate cuts, the trajectory remains focused on quantitative easing.

At the same time, he argued that even if the Federal Reserve, for some reason, decided to stop interest rate cuts altogether, China’s easing efforts would prevail. He highlighted that China accounted for nearly twice the global liquidity of the U.S.

Insight Into Presto Research’s Methodology 

Zooming in on the specific price targets, Presto Research’s Chung disclosed that the firm based its Bitcoin price target on the market value to realized value (MVRV) ratio. This metric measures the difference between the digital asset’s market value and the average value at which coins were last moved to determine price extremes or market tops and bottoms.

Chung explains that Presto Research estimated Bitcoin’s realized value for 2025 and applied a 3.5 times multiple based on the historical range to reach the $210,000 target.

For Solana, the researcher explains that Presto Research expects the leading Layer 1 blockchain to hit Ethereum’s 2021 peak market cap of about $500 billion, leading to the firm’s $1,000 per coin forecast.

Chung says this estimation is based on growing institutional interest, development activity, and a favorable supply outlook.

While Chung failed to go into details about Presto Research’s Ethereum forecast on CNBC’s Squawk Box, the firm’s publicly available report suggests that the second largest crypto by market cap will likely gain momentum as developers address liquidity fragmentation and UX concerns.