The first half of 2025 has been monumental for bitcoin and the broader crypto market.

In Washington, cryptocurrencies have seen a growing acceptance, with President Donald Trump establishing a supportive stance. Bitcoin has surged approximately 15% since January, surpassing the 7% increase of the S&P 500. The cryptocurrency is nearing its historic peak of nearly $112,000, a target initially set by analysts earlier this year.

Investors in the crypto space are keenly observing potential developments as the year progresses.

Emergence of Bitcoin Treasury Companies

In 2025, bitcoin treasury companies are at the center of discussions. These businesses hold a significant part of their reserves in bitcoin either for protection against inflation or because they anticipate bitcoin evolving into a universal reserve asset. Presently, there are about 135 publicly traded companies with bitcoin as a reserve.

“The latter part of 2025 will be critical for bitcoin’s role as a reserve asset, fueled by global trends, the evolution of corporate strategies, and recognition by institutions,” explained Stephen Cole, co-founder and CEO of bitcoin treasury solutions firm Castle. “New bitcoin treasury entities are surfacing in all major global markets, and I foresee this momentum sustaining,” he stated.

Cole anticipates that by year’s end, prominent tech corporations and larger firms will initiate their bitcoin acquisition strategies. “The urgency for both SMEs and larger companies regarding bitcoin acquisition has shifted from ‘if’ to ‘when,’” Cole remarked.

Demand Dynamics: Bitcoin Vs. Altcoins

Concerns arise over whether bitcoin treasury firms are diminishing interest in smaller, more volatile cryptocurrencies.

“Traditionally, altcoin demand has been driven by: 1) seeking exposure akin to bitcoin, and 2) unique applications that bitcoin’s framework does not offer,” remarked David Lawant, Head of Research at FalconX. “Currently, bitcoin treasuries and improved access to derivatives like options can address the first demand more efficiently.”

However, Lawant asserts that bitcoin reserves cater to only some altcoin demand drivers. “The market cycle is far from completion,” he cautioned, suggesting a potential uptrend for select alternative cryptocurrencies.

“Altcoins with solid fundamental propositions continue to offer significant performance potential,” Lawant emphasized. Anticipated regulatory changes such as a revamped crypto market framework and a more favorable outlook on digital assets are probable.

A report from Ethereum supporters has likened ether to digital oil, fueling discussions. However, skepticism remains whether the adoption of Ethereum’s technology by giants like Coinbase and stablecoin producers will eventually translate into long-term value for ether.

Ether’s Future and Potential Revival

Ether, which ranks second in the crypto hierarchy after bitcoin, may be at a pivotal juncture. In recent years, it has lagged behind bitcoin and some lesser-known competitors like Binance Smart Chain and Solana.

Nonetheless, Lawant maintains optimism about ether’s future.

“Recent months have shown a positive shift in Ethereum sentiment,” Lawant mentioned. “Ethereum’s alignment with conventional financial markets is a decisive factor in its valuation. This is evident through its active CME futures market and the initiation of spot ETFs.”

Lawant added that ether “still lacks comprehensive ownership from institutional investors.” Analysts suggest that integrating staking with spot ether ETFs might encourage institutional participation. “If growth continues as anticipated, ether has considerable potential for gains.”

Data from CoinGecko indicates ether has depreciated by about 85% compared to bitcoin since its peak of 0.1475 ether per bitcoin approximately eight years ago.