Framework Co-creation 2025 Forecast: The Federal Reserve will continue to cut interest rates, and ETH ETF funds will continue to flow in
The altcoin market will usher in a prolonged altcoin season.Author: Vance Spencer
Compiled by: Deep Tide TechFlow
Macroeconomics
Four countries in the G7 (France, Germany, Canada, and possibly the UK, which may soon rejoin) are experiencing government changes due to budget crises. One of these countries is expected to face a bond auction failure by 2025. By the end of 2025, most G7 countries will be governed by conservative administrations.
Trump will establish a new global monetary framework similar to the Plaza Accord of 1985. This framework will drive a gradual and significant depreciation of the dollar, facilitating the return of manufacturing to the U.S. while directing liquidity towards the U.S. market and high-risk asset markets like cryptocurrencies.
Inflation is expected to be between 2.5% and 3.3%, and the Federal Reserve will significantly lower interest rates in response to a weak job market.
Major global armed conflicts are expected to end in the first half of 2025, leading to an optimistic era of peace and security.
United States
The S&P 500 Index (SPX) is expected to rise to 7,500 points, with artificial intelligence (AI) technology fulfilling its promises and driving economic growth.
At least one major U.S. city (possibly Chicago) will face a bankruptcy crisis.
Decentralized Autonomous Government Entities (DOGE) will operate with high efficiency, saving the federal budget $2-3 trillion, achieving a 0% fiscal deficit for the U.S. This model will be emulated by other G7 countries and local governments in the U.S.
Against a backdrop of 0% deficit, U.S. interest rates will decline significantly.
Trump's approval ratings will reach the highest level ever recorded for a U.S. president.
Crypto
The inflow of funds into Ethereum (ETH) and Bitcoin ETFs will reach similar levels in the second half of 2025, with daily inflows of $1 billion each. This trend is primarily driven by the launch of composite ETFs.
The altcoin market will experience a sustained altcoin season, especially with emerging blockchain ecosystems like Berachain performing well due to high attention.
The combination of gaming and artificial intelligence (AI) will become the vertical with the highest user volume (MAUs/DAUs), thanks to significant enhancements in gaming experience and interaction driven by AI technology.
With the support of Glow and Daylight, the fee income from Energy Decentralized Protocols (Energy DePin) will be on par with blue-chip DeFi projects. These protocols utilize blockchain technology to optimize energy distribution and transactions.
Memecoins will be segmented into various categories, including transient, AI-driven, factory-produced, and large-cap types, leading to increased market differentiation, though competition remains fierce.
Total fee revenue from decentralized finance (DeFi) is expected to exceed $10 billion in 2025, while the supply of stablecoins is projected to reach $500 billion by the end of the year.
Assets of large banks will begin to be tokenized, significantly reducing resource waste in the U.S. financial system and enhancing efficiency.
Plans for the listing of other cryptocurrency ETFs, excluding Bitcoin and Ethereum, will be postponed until 2026.
Culture
An increasing number of people are leaning towards religious beliefs or spiritual pursuits, possibly as a response to the pressures of modern society.
As artificial intelligence (AI) begins to automate content creation and programming tasks, top creators on Instagram, TikTok, Twitter, and OnlyFans, as well as software developers, will reach the peak of their careers globally.
Elon Musk will become the world's first trillionaire, thanks to his successful ventures across multiple industries.
Fetterman will emerge as the clear frontrunner for the Democratic nomination in the 2028 U.S. presidential election, competing against Republican candidate JD Vance.
