Galaxy Research Forecasts New Bitcoin Records With Rising Institutional Adoption
Following bitcoin's recent breakthrough above $100,000, Galaxy Research projects the cryptocurrency will reach approximately $185,000 by the fourth quarter of 2025. The forecast comes as institutional investors, corporations, and sovereign nations increase their involvement in the digital asset market.
The cryptocurrency market has seen significant changes since Donald Trump's election victory and the nomination of Paul Atkins as SEC chair, which Citi analysts identified as key factors in bitcoin's rise above $100,000. Currently trading near $98,500, bitcoin continues to attract investment through ETF flows and growing mainstream adoption.
Galaxy Research expects five companies from the Nasdaq-100 index and five nation states to add bitcoin to their balance sheets or sovereign wealth funds in 2025. The competition between countries could start a new wave of adoption. The research also predicts U.S. spot bitcoin ETF assets under management will exceed $250 billion in 2025.
The second-largest cryptocurrency, ether, is projected to surpass $5,500 in the next 12 months. According to Alex Thorn, Galaxy's head of research, various forms of institutional adoption will drive these price increases. At least one major wealth management platform is expected to announce a bitcoin allocation of 2% or higher next year.
Bitcoin's role in decentralized finance is set to expand, with Galaxy forecasting the amount of bitcoin locked in DeFi protocols to double from the current $11 billion. The research also predicts bitcoin's market capitalization will reach 20% of gold's market cap next year.
The cryptocurrency mining sector is expected to evolve, with over half of the 20 largest listed bitcoin mining companies predicted to establish partnerships with artificial intelligence firms or hyperscalers in 2025. Citi analysts note that while bitcoin benefits from the current positive environment, other digital assets might gain more from an improved regulatory landscape, as bitcoin's regulatory framework is already relatively established with commodity classification and ETF approval.
