Bitcoin is well-known as the largest cryptocurrency by market cap, while Ethereum is the second-largest. Both coins remained clear leaders in the crypto market throughout 2024 despite facing competition from many other altcoins. When combined, the market cap of Bitcoin and Ethereum make up over 70% of the entire global cryptocurrency market.
As crypto investors prepare for 2025, they might be wondering what altcoins they can invest in; the two most obvious choices are Bitcoin and Ethereum. Bitcoin boasts a $2 trillion market cap which is way more than Ethereum’s $400 billion market cap. Still, Ethereum offers diverse applications in DeFi, making it a promising investment. Between the two, which one will have a better return on investment in 2025?
Bitcoin (BTC) in the Lead
In 2024, Bitcoin’s performance seemed to be in the lead. It reached its all-time high of $106,147 in December 2024, which led to a lot of excitement among investors as it finally surpassed the long-awaited $100,000 mark. Meanwhile, Ethereum has not been able to surpass its all-time high of $4,635, which it achieved in November 2021.
Many are expecting that the ETH 2.0 upgrade to its blockchain will push its value past resistance (where selling pressure is greater than buying pressure), especially as ETH is set to hit an all-time high in 2025. Still, Bitcoin recently hit its high, and more BTC investors are making a profit. Bitcoin’s value has surged by more than 126% throughout the year — an increase driven by the launch of Bitcoin spot Exchange Traded Funds (ETFs) and the halving event in April.
In January 2024, the US SEC approved the first 11 Bitcoin spot ETFs in the most successful ETF launch in history. This development contributed to the rise of BTC. The halving event occurred in April and reduced the rate at which new BTC coins were created, thereby lowering the available supply. Historically, there has been a correlation between halving events and the BTC price, causing its value to increase further.
2024 saw an increase in the institutional adoption of Bitcoin, especially with the investment in Bitcoin ETFs. These spot ETFs were launched in January, placing the coin at a good start. The halving event also led to a 50% reduction in supply inflation of BTC and an increase in scarcity.
When using a crypto trading platform, you’ll see that Bitcoin is also in the lead when it comes to its dominance in the crypto market. Although its dominance might have declined, it is still above 56%, revealing investor confidence in the coin. Bitcoin’s dominance level is far higher than Ethereum’s, which is around 13%.
Analysts have positive predictions for Bitcoin in 2025, especially after it had a good performance in 2024, surpassing various price milestones. They have bullish predictions for BTC in 2025, with some expecting that it will reach a high of $180,000 by the end of next year. Others are even more optimistic, expecting the coin to exceed a value of $200,000.
Analysts also expect that Bitcoin will perform well in 2025 with the emergence of Donald Trump, a crypto-friendly president.
Analysts Predict Positive Movements for Ethereum
On the other hand, Ethereum is also expected to provide investors with high returns on their investments in 2025. Ethereum had a decent run in 2024, increasing by over 52% throughout the year. Despite attaining only half of what Bitcoin achieved, Ethereum still had great growth and briefly surpassed the $4,000 mark.
Industry experts have made varying predictions for the price of Ethereum in 2025, ranging from $4,800 to $7,000. Some predict that the value of ETH may increase by 5% in 2025, reaching a value of $4,682. Others project that the value could be around $6,105 by the end of next year. The more optimistic analysts expect Ethereum to rally to a new all-time high near $7,000.
While all these predictions are positive, several conditions still need to be met for ETH to finally achieve an all-time high. This is especially because the last time it reached an all-time high was in 2021. More interest from institutions and broader adoption of Ethereum-powered applications could drive the value of the cryptocurrency.
Bitcoin ETFs vs Ethereum ETFs
When choosing between Bitcoin and Ethereum based on their expected ROI in 2025, it’s also essential to examine the ETFs. The trading volumes of crypto ETFs are expected to rise, especially as more institutional and retail investors gain exposure to Bitcoin and Ethereum through these funds. This makes ETFs, with their potential to increase overall ROI, a top choice for crypto traders.
Bitcoin ETFs and Ethereum ETFs are expected to be the first US crypto funds to launch in 2025, which has increased investor confidence in the original coins. Analysts expect that the Bitcoin and Ethereum ETFs will be followed by other ETFs tracking Litecoin and Hedera.
Although many analysts support Bitcoin, some believe that Ethereum will outperform it. Ethereum ETFs reached different financial heights for consecutive weeks in 2024, and experts expect this trend to be sustainable. This is especially driven by the expanding network activity, which might help ETH meet its price target in 2025.
The US Securities and Exchange Commission gave a greenlight for ETFs that combine Bitcoin and Ethereum, offering investors with massive potential for capital influx.
Investing in Cryptocurrency Ahead of 2025
Choosing between Bitcoin and Ethereum for better ROI in 2025 depends on your individual investment goals and risk tolerance. Both coins have positive price predictions for the coming year, after decent performances in 2024 that left investors satisfied. While Bitcoin is projected to reach new heights with its strong market leadership and dominance, Ethereum’s evolving use cases and network upgrades can lead to substantial gains in 2025.
