Crypto Market Forecast

We should be in the middle of the largest bull run in crypto history right now. However, with ongoing global trade wars introducing massive tariffs, emerging stagflation maintaining Bitcoin dominance, and extreme altcoin dilution obliterating utility, the four-year crypto market cycle, typically set in motion by BTC’s halving event, has become messy. 

Leaving investors reeling with devastating crashes and incremental price jumps, and analysts pondering what will happen due to weekly world-changing historical events, this market is a landscape of unknown chaos. 

So, in today’s blog, to provide some clarity and hopeful respite from the everlasting market turmoil, we are going to outline a forecast for what we believe will happen throughout the rest of 2025. We will cover our thoughts about the general crypto market, Ethereum, the DePIN space, as well as the current trends of stablecoins and AI; let’s dive in!

General Market Outlook

If the rest of 2025 follows the classic four-year Bitcoin halving cycle, then the bull run is expected to take off in late Q3 or Q4, with a downturn in early 2026. Investors remain bullish on this possibility, particularly with spot ETFs, substantial institutional investment, and a U.S. government that is more favorable to crypto. 

With the passage of the GENIUS Act earlier this summer, crypto is becoming increasingly mainstream, leading to the belief that even when we enter a bear market later next year, it won’t last as long or with such drastic price drops as previous bear cycles. 

The next bear market may instead be more of a steady climb with minor pullbacks—hinting at a crypto market reflecting low volatility, more like a traditional asset class, rather than devastating drawdowns. 

Importantly, though, markets tend to punish prospective unanimity, with the unexpected being almost always guaranteed. However, it’s not about whether we’ll see another parabolic run followed by a collapse; it’s about understanding that the crypto market is evolving from a volatile space of pump-and-dump schemes to a recognized asset class of actual value that actually incentivizes saving.

Ethereum

Second only to Bitcoin in market capitalization, Ethereum’s typical meteoric rise in early bull run cycles has been significantly delayed, with many believing it will never recover its 2021 highs. 

However, ETH remains the backbone for most DeFi activity, and with tokenization and stablecoin adoption growing, it maintains a strong position in the market—especially with the tokenization of real-world assets projected to reach $30T by 2034. 

We believe that Ethereum will finally see a breakout in late Q3 of 2025 as BTC dominance slips and Ethereum increasingly accounts for the largest share of cumulative DEX volume and total value locked. 

DePIN

The Decentralized Physical Infrastructure (DePIN) space has steadily grown as this subnarrative of crypto brings the most long-term utility, combining decentralized governance with idle compute and user-owned hardware. 

DePIN has been hyped up for a while now, and we have carved out a niche in this narrative where Flux flourishes. Ran by InFlux Technologies, our stack comprises a global decentralized cloud infrastructure powered by a distributed network of computational FluxNodes. 

InFlux sets itself apart in the DePIN space with a decentralized P2P compute marketplace, FluxEdge, where devs or users in need of computing resources can receive power from providers with underutilized hardware, drastically reducing e-waste. 

Both the United States and countries across Europe are leveraging distributed cloud technology for environmentally demanding workloads, as this form of compute provisioning extends the lifecycles of older hardware, mitigating the need for the rapid production of new GPUs. 

The DePIN space is going to continue rising at the end of the year. Many projects in this niche are expected to reach all-time highs due to the rapid rate of institutional adoption and increasing demand for scalable computing, driven by the rise in AI development. 

By virtue of the utility that DePIN brings, this narrative will not experience a falloff but will continue to grow, even as 2025 ends and we naturally dip back into a downtrend when the bears start to emerge from hibernation in early 2026.

Major Market Trends: Stablecoins & AI

Two key trends are dominating the cryptocurrency landscape in 2025: the widespread adoption of stablecoins and the application of artificial intelligence. 

Right off the bat, you have President Trump supporting World Liberty Financial and the USD1 stablecoin, and Hong Kong allowing its first stablecoin under a new license, heralding Asia as a potential central force in global stablecoin licensing. To top it all off, record numbers of major institutions, such as BlackRock, are pushing tokenization. 

Additionally, AI is taking crypto utility to the next level, with agentic systems launching directly on-chain to execute complex, multi-step transactions autonomously. AI agents can accelerate blockchain adoption by facilitating higher volumes of on-chain activity through the simultaneous execution of automated tasks. 

Account abstraction and programmable smart contracts with hooks provide a perfect sandbox for the convergence of AI and blockchain. As a result, in this upcoming bull run, there is a lot of hype around AI coins, so pay attention to the “intelligence tokens” niche.

Conclusion

As summer comes to a close and we approach the beginning of a potential full-scale bull run, this market is not defined by speculative boom-and-bust cycles, but by a stabilizing mainstream interest in and demand for crypto. 

With growing political support and institutional adoption of stablecoins, Ethereum’s critical role in DeFi, the increasing utility of DePINs, and the convergence of AI and blockchain, the crypto market today is resilient and teeming with applicable use cases.

Volatility in crypto will always exist, mainly since airdrop economics often determine inflated listing prices. However, the current cycle comes with positive crypto sentiment, unlike previous Bitcoin halving cycles, where the majority viewed decentralized tokens as glorified online gambling coins.

Regardless of whether this market cycle ends in an explosive top-off with new all-time highs or develops a more S&P 500-style growth trajectory with steady, incremental gains and occasional, minor corrections, crypto is fast becoming a deflationary haven of value. 

So, despite a major historical event happening every week, have faith because here at Flux, we are predicting bullish things on the horizon for the rest of 2025! For more market predictions and crypto clarity insights, be sure to follow us on X and stay tuned for future blog posts.