Galaxy Research has projected that Bitcoin (BTC), the world’s leading cryptocurrency, is set to experience significant growth by 2025, potentially reaching or exceeding $185,000 in the fourth quarter. This growth is expected to be driven by increased adoption by institutional investors, corporations, and nation-states.
Ether (ETH), the second-largest cryptocurrency, is also anticipated to see notable gains, with its price forecasted to surpass $5,500 in the coming year.
Alex Thorn, Galaxy’s head of research, explained that Bitcoin’s price surge will be primarily fueled by widespread adoption from institutions, businesses, and governments. The report suggests that by 2025, at least five Nasdaq-100 companies and five nation-states will have incorporated Bitcoin into their balance sheets or sovereign wealth funds. This rising competition among nations will drive the next phase of Bitcoin adoption.
In addition, Galaxy predicts that U.S. spot Bitcoin exchange-traded funds (ETFs) will manage over $250 billion in assets by 2025. At least one prominent wealth management platform is expected to announce a Bitcoin allocation of 2% or more in 2024.
Bitcoin’s decentralized finance (DeFi) ecosystem is also expected to expand, with the total value of BTC locked in DeFi likely to double from the current $11 billion by next year.
The report also highlights the ongoing trend of Bitcoin miners transitioning toward high-performance computing (HPC), with more than half of the 20 largest publicly traded Bitcoin mining companies expected to form partnerships with artificial intelligence (AI) companies or hyperscalers in 2025.
Lastly, Galaxy forecasts that Bitcoin will capture 20% of gold’s market capitalization by 2025, marking its increasing role as a global store of value.
