Galaxy Research Forecasts Bitcoin and Ether to Hit New Price Records in 2025
Galaxy Research– Bitcoin (BTC), the world’s largest cryptocurrency by market capitalization, is poised to achieve new all-time highs in 2025, according to a recent report by Galaxy Research. The research team predicts that Bitcoin could “test or surpass” the $185,000 mark in the fourth quarter of 2025, driven by growing institutional, corporate, and nation-state adoption.
Ethereum to Reach $5,500 in 2025
The second-largest cryptocurrency, Ether (ETH), is also expected to see significant gains in the next year. Galaxy Research forecasts that Ether will surpass the $5,500 mark in the next 12 months. This projection reflects optimism about Ethereum’s continued dominance in decentralized applications (dApps) and smart contract functionalities, alongside the ongoing shift toward Ethereum 2.0.
Institutional and Nation-State Adoption Fueling Bitcoin’s Surge
Galaxy Research highlights that a mix of institutional and national-level adoption will be a key factor in driving Bitcoin’s rise. Alex Thorn, Head of Research at Galaxy, stated that “a combination of institutional, corporate, and nation-state adoption will propel Bitcoin to new heights in 2025.” This growing adoption is expected to have a profound impact on Bitcoin’s price and market dynamics.
Galaxy predicts that by 2025, at least five Nasdaq-100 companies and five nation-states will add Bitcoin to their balance sheets or sovereign wealth funds. The competition among countries to adopt Bitcoin is anticipated to be a catalyst for the next wave of market adoption. This trend could lead to increased demand and a greater institutional presence in the cryptocurrency space.
U.S. Bitcoin ETFs to Surpass $250 Billion in AUM
Another major driver of Bitcoin’s anticipated growth is the rise of Bitcoin Exchange-Traded Funds (ETFs) in the U.S. Galaxy forecasts that the total assets under management (AUM) of U.S.-based Bitcoin ETFs will exceed $250 billion by 2025. This growth will likely further legitimize Bitcoin as an asset class, attracting both retail and institutional investors.
Additionally, Galaxy predicts that at least one leading wealth management platform will announce an allocation of 2% or higher to Bitcoin in 2025, further indicating increased mainstream adoption.
Bitcoin DeFi and Mining to Expand in 2025
Galaxy Research also foresees continued growth in Bitcoin’s decentralized finance (DeFi) ecosystem. The total amount of Bitcoin locked in DeFi is expected to double in the coming year, from the current $11 billion. This surge in DeFi activity indicates a greater use of Bitcoin in decentralized applications, as investors seek more diversified financial services.
The report also highlights the trend of Bitcoin miners shifting toward high-performance computing (HPC) as they look for more efficient and profitable ways to mine Bitcoin. In 2025, more than half of the 20 largest listed Bitcoin mining firms are expected to announce collaborations with artificial intelligence (AI) companies or hyperscalers, further pushing the technological boundaries of Bitcoin mining.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
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