- Ethereum experts predict relatively high implied volatility and optimism ahead of the upcoming technical upgrade.
- Bitcoin miners are currently profitable but a deeper pullback in Q1 2025 is likely, according to Bitfinex analysts.
- Ripple’s RLUSD stablecoin’s roll-out paves the way for higher utility and adoption of XRP.
- Bitcoin, Ethereum and XRP gain slightly on Friday after observing losses in the past seven days.
Bitcoin (BTC), Ethereum (ETH) and XRP gained slightly on Friday, even as the three assets erased their value in the past seven days. Experts predict a higher-than-usual volatility in both BTC and ETH next week, with a likelihood of a correction in Bitcoin in Q1 2025.
Bitcoin and Ethereum face higher volatility
Anthony Rousseau, head of brokerage solutions at TradeNation, shared his Bitcoin 2025 outlook with FXStreet. Rousseau predicts higher implied volatility (IV) for both BTC and ETH. “In 2025, we expect implied volatility (IV) for both Bitcoin and Ethereum to remain elevated, driven by ongoing geopolitical events, regulatory developments, and market adoption. Derive.xyz’s nearly 4x increase in trade volume over the past year highlights the increasing sophistication and participation in the options market,” he said.
The trend suggests that traders are bracing for volatility alongside their optimism about Ethereum’s upcoming technical upgrade. Rousseau observes that Ethereum remains well-positioned to regain its lead in DEX metrics in 2025. With its strong network effect, Ethereum could enhance its scalability and appeal for traders and developers.
“If these improvements materialize, Ethereum could see a resurgence in total value locked (TVL) and user activity, reclaiming its dominance over Solana in the decentralized exchange (DEX) space,” said Rousseau.
Bitcoin gears for a steep correction
With Bitcoin’s recent all-time high and a robust-looking crypto market, analysts at Bitfinex still expect a correction in the largest cryptocurrency.
“While a deeper Q1 2025 pullback remains a possibility, the broader tightening of supply and bullish sentiment among miners indicate that Bitcoin is well-positioned for further gains in the medium term,” Bitfinex analysts told FXStreet.
The experts explained that while miners are currently profitable, the sentiment could shift once they sell their holdings to support operations. Miners are currently in a strong position and they are sitting on unrealized profits.
Historically, when miners realize their profits and sell their Bitcoin holdings to support operations, it negatively impacts the token’s price.
XRP eyes gains with RLUSD public roll-out
Simon McLoughlin, CEO of Uphold, said in an exclusive interview with FXStreet that the solidification of stablecoin frameworks could drive the sector’s market capitalization higher.
McLoughlin predicts that stablecoin market capitalization will exceed $3 trillion by 2029:
“With 98 of the top 100 banks now investing in blockchain capabilities, stablecoins are offering a genuine alternative, redefining speed, efficiency, and cost across the financial landscape. The world’s largest banks are quietly embracing stablecoins—not as a nod to crypto hype, but as a fundamental evolution in fintech.”
The executive cites Ripple’s example and says that RLUSD stablecoin’s rollout to the broader public on Ethereum and the XRPLedger could increase financial transactions at scale.
Higher utility and adoption could catalyze gains in XRP, even as Bitcoin faces a correction.
At the time of writing, Bitcoin hovers close to $95,000, Ethereum holds steady above $3,300 and XRP trades at $2.3289.
