In a post on X today, January 20, Dennis Liu (@VirtualBacon0x), a general partner at Momentum 6, shared an ambitious prediction for Ethereum (ETH), suggesting that the cryptocurrency, which ranks second by market capitalization, could hit $14,000 by the close of 2025. Liu emphasizes that the next six months will be crucial, indicating ETH’s capacity to oversee the market through June.
“Ethereum is about to dominate the market, you don’t want to miss this window,” Liu stated. “Ethereum has been lagging behind Bitcoin this cycle, but that’s about to change. I believe ETH will shine in the next 6 months.”
Why Ethereum May Surpass Market Expectations
Despite the increasing adoption of ETH, Liu asserts that its underperformance in comparison to Bitcoin is linked to “institutional timing.” He suggests: “ETH is institutionally driven, unlike Bitcoin or retail-preferred altcoins. ETFs offer stability and utility, making ETH a suitable choice for institutional investors.” According to Liu, institutions have been biding their time for market conditions to improve and sees 2025 as the point when these conditions will finally be met.
Liu also cites the US Federal Reserve’s shifts in policy as a significant factor for ETH’s anticipated growth. He mentions that since May 2024, the Fed has decreased its pace of balance sheet reductions, and hints at a possible return to liquidity injections following the upcoming Federal Open Market Committee (FOMC) meetings on January 29 or March 19.
“Since May 2024, the Fed has slowed balance sheet reductions, signaling a pivot. A liquidity boost could follow Jan 29 or Mar 19 FOMC meetings. Why it matters: Fed liquidity pumps historically drive ETH/BTC higher,” he explains. He concludes that such moves from the Fed may result in “ETH outperformance” in the near future.
Drawing on a decade’s worth of market data, Liu notes that ETH has consistently outperformed Bitcoin from January to June, with Bitcoin leading from July to December. “From January to June, ETH consistently outperforms Bitcoin. … If you’re holding ETH, now until June is historically the best window for gains,” he adds.
Liu further notes potential support for Ethereum from the Trump administration, referring to the former president’s NFT collections and DeFi platform utilizing Ethereum. “His NFT collections and DeFi platform are built on Ethereum. Trump’s administration intends to replace SEC leadership, potentially re-evaluating anti-DeFi rulings. Institutional optimism surged after Trump’s election win in November 2024, driving ETF inflows,” Liu says. He concludes that “pro-crypto policies will directly benefit Ethereum-focused DeFi.”
Emphasizing Ethereum’s institutional appeal, Liu points to real-world asset (RWA) tokenization initiatives by major entities like BlackRock and other leading DeFi projects such as AAVE, MakerDAO, and OriginTrail. “Ethereum isn’t leading meme coin or AI trends – it’s powering serious institutional growth,” he asserts.
He also draws attention to a significant uptick in Ethereum ETF inflows, which became positive in November 2024 after a period of decline, noting, “ETFs added $6B in net inflows from Nov to Jan, or 0.76% of ETH supply/month. … Institutions are purchasing more ETH than BTC each month, indicating growing confidence in Ethereum as an asset.”
Looking ahead to 2025, Liu believes ETH has the potential to increase fourfold to $14,000 if Bitcoin rises to $200,000, highlighting Ethereum’s historical tendency to outstrip Bitcoin by an additional factor of two. “If Bitcoin doubles to $200K, ETH could 4x to $14K, following its historical outperformance (2x on top of BTC). … While diminishing returns may restrict overarching gains, ETH is still a high-conviction investment for this cycle,” he explains.
In conclusion, Liu emphasizes that a convergence of factors—from increased Fed liquidity to favorable DeFi policies—creates a unique short-term opportunity for Ethereum: “With ETF inflows rising, the Fed’s potential liquidity injection, Trump’s pro-DeFi stance, and ETH’s seasonal strength, all the catalysts are aligned. … Ethereum’s time to shine is now until June. I’d rather be overexposed than miss this opportunity.”
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