Key Takeaways:
- Crypto is overperforming traditional equities, offering 21.72% ROI in Q2 2025.
- Retail investors tend to prefer altcoins, while institutional investors choose Bitcoin.
- There was a 753% increase in crypto hiring for crypto companies in Q2.
- Bitcoin’s dominance reached 64.9%, a 4-year high that’s likely to increase as it breaks through higher ATHs.
- Net $BTC ETF inflows have reached $226.7M, governments are holding over 2.5% of Bitcoin’s total supply, and companies are at 5% holdings.
With Bitcoin breaking through the $118K level faster than Trump is speeding through tariff announcements, the crypto market is quickly headed toward a massive rally.
Today, we’ll be delving into 99Bitcoins’ Q2 2025 State of Crypto Report, created together with KCEX, to help you analyze the current market conditions and make informed decisions.
Tayler McCracken, General Manager of 99Bitcoins. puts it best:
Q2 2025 clearly demonstrates a pivotal moment for the crypto market, showcasing not just resilience but formidable growth.
Tayler McCracken, Q2 2025 State of Crypto Report
Recent months have proven the Bitcoin bull narrative over and over again. As institutional adoption keeps growing, Bitcoin slowly decouples from financial markets and becomes its own asset. A better version of gold, if you will, and a better store of value with greater portability and ease of use.
Expert Insights Into Macroeconomic Factors in Support of Bitcoin
99BTC’s State of Crypto report aptly underscores the real reasons Bitcoin and the crypto market have been outperforming traditional investment instruments. One word – ETFs.
Here’s what Chris Wright, Global Head of Marketing for 21Shares, had to say on the matter:
We believe that Bitcoin ETFs will attract 50% more inflows this year compared to last year. This would result in net inflows of approximately $55 billion in 2025, representing an increase of around $20 billion year-over-year. If this trend continues, the total assets under management could nearly double from just over $110 billion currently, to over $200 billion by the end of the year.
Chris Wright, Q2 2025 State of Crypto Report
With even memecoins like Pengu getting their own ETFs (see the Canary Pengu ETF), it’s quite expected that we’ll see an ETF rush throughout 2025.
Chris Wright also claimed that ETPs are becoming the ‘preferred entry points’ for institutions into the world of crypto. Case in point, institutional holder numbers grew by 5% in Q2, a trend that’s expected to pick up more momentum.
Donald Trump’s pro-crypto presidential campaign and administration has also been of enormous help for the industry. The CLARITY and GENIUS Acts are two of the most important crypto-centric acts proposed by the US administration, and pundits are saying that both will be very likely adopted and push the market to higher highs.
Sector-Specific Overview on Ethereum, Stablecoins, RWA, Meme Coins and More
99Bitcoins’ report offers several sector-specific insights:
- Over 5.9M new meme coins have been created in 2025
- Ethereum dominates the DeFi space at 55.78% market share
- Stablecoins’ transaction volumes and unique active addresses have exploded lately
- NFT sale volume has dropped by 27% but unique buyers have increased by 27.85%
- DePIN projects are gaining popularity
- RWA and AI tokens are peaking in popularity
Stablecoins increased in demand after Circle’s IPO skyrocketed 168% in a day. And they show that no fewer 81% of small and medium businesses are interested in stablecoins. In the last year, the volume of stablecoin transactions surpassed $35T.
There’s significant geopolitical headwind pushing crypto development forward. The US trailblazing the way with bills like GENIUS and the CLARITY Acts, while removing the controversial crypto broker tax will unlock deep liquidity pools for crypto investors in the US, who are looking to shift away from gold and T bills and into the crypto space.
What’s clear that it isn’t just one crypto niche that has received investor attention. Multiple key industries have contributed to the sky-high adoption we’re seeing now, and leverage keeps increasing as venture capital is pushing developers to come up with crypto assets they can readily use.
Key Takeaways & Q3 Outlook
As we try to estimate what Q3 2025 will look like, the bullish narrative remains stronger than ever.
The report for Q2 makes it easy to predict Bitcoin’s likely ascent to above $120K or $135K, with Ethereum also growing as the second-best blue-chip crypto on the market.
And it’s unlikely that memecoins will remain stationary. As with every bull run, these happy-go-round tokens were among the highest gainers, and this time shouldn’t be any different.
The post What 99Bitcoins’ Q2 Report Reveals About Crypto’s 2025 Comeback — Institutions, DeFi & Bullish Momentum appeared first on The Market Periodical.
