Bitcoin and Ethereum Face Higher Volatility, Prepare for a Correction in 2025, Experts Say

Bitcoin, Ethereum and XRP have largely erased their gains over the past seven days. However, they have recovered some of their post-correction losses.

Bitcoin and Ethereum are expected to experience higher-than-normal volatility next week. Experts also predict a correction for Bitcoin in the first quarter of 2025.

Bitcoin and Ethereum higher volatility on the agenda!

Anthony Rousseau, Head of Brokerage Solutions at TradeNation, shared his Bitcoin 2025 outlook. According to Rousseau, higher implied volatility (IV) is expected for both BTC and ETH.

“In 2025, we expect implied volatility (IV) to remain high for both Bitcoin and Ethereum due to ongoing geopolitical events, regulatory developments and market adoption. Derive.xyz has seen a nearly 4x increase in trading volume over the past year. This highlights the growing complexity and participation in the options market.”

This trend suggests that traders are preparing for volatility as well as optimism about Ethereum’s upcoming technical upgrade. According to Rousseau, Ethereum is well positioned to regain its lead in DEX metrics in 2025. With its strong network effect, Ethereum is likely to increase its appeal for traders and developers.

“If these improvements materialize, Ethereum could see a resurgence in total value locked (TVL) and user activity. It is also likely to regain its dominance over Solana in the decentralized exchange (DEX) space.”

Bitcoin is preparing for a sharp correction!

As you have been following on Kriptokoin.com, Bitcoin has broken record after record recently. Thus, it reached the ATH level. However, Bitfinex analysts still expect a correction for the leading cryptocurrency.

In this context, Bitfinex analysts make the following assessment:

While the possibility of a deeper pullback in the first quarter of 2025 remains, the further tightening of supply and the bullish sentiment among miners suggest that Bitcoin is well positioned for further gains in the medium term.

According to the experts, while the miners are currently profitable, the sentiment could change as they sell assets to support operations. Miners are currently in a strong position and are sitting on unrealized profits. Historically, when miners realize profits and sell their Bitcoin holdings to support operations, it negatively impacts the token price.

XRP aims to profit from RLUSD going public!

Simon McLoughlin, CEO of Uphold, says the consolidation of stablecoin frameworks will boost the industry’s market capitalization. McLoughlin predicts that stablecoin market capitalization will exceed $3 trillion by 2029:

With 98 out of the 100 largest banks investing in Blockchain capabilities, stablecoins offer a real alternative, redefining speed, efficiency and cost in the financial world. The world’s biggest banks are quietly embracing stablecoins, not as a nod to the crypto hype, but as a fundamental evolution in fintech.

McLoughlin cites Ripple as an example. He also says that the wider diffusion of RLUSD on Ethereum and XRPLedger will boost financial transactions at scale. According to the analyst, higher utility and adoption could catalyze gains in XRP even if Bitcoin faces a correction.