Bitcoin (BTC) is poised to hit unprecedented highs in the coming years, with Galaxy Research forecasting a potential price of $185,000 in the fourth quarter of 2025. Ether (ETH), the second-largest cryptocurrency, is also set to shine, with predictions of surpassing $5,500 within the next 12 months, according to a report released last week.
Galaxy Research, led by Alex Thorn, attributes Bitcoin’s anticipated meteoric rise to a confluence of institutional, corporate, and governmental adoption. The report predicts that by 2025, at least five Nasdaq-100 companies and five nation-states will integrate Bitcoin into their balance sheets or sovereign wealth funds. This competition is expected to drive a significant wave of adoption, solidifying Bitcoin’s role as a global financial asset.
The outlook for U.S. spot Bitcoin exchange-traded funds (ETFs) also appears promising. Galaxy forecasts the total assets under management (AUM) for these ETFs to exceed $250 billion by 2025. Additionally, the report speculates that at least one prominent wealth management platform will allocate 2% or more of its portfolio to Bitcoin next year.
The burgeoning Bitcoin decentralized finance (DeFi) sector is another area of growth, with the total BTC locked in DeFi expected to double from the current $11 billion. The report also highlights a pivot among Bitcoin miners toward high-performance computing (HPC). By 2025, over half of the top 20 publicly traded Bitcoin mining firms are expected to announce collaborations with artificial intelligence (AI) firms or hyperscale data centers.
Galaxy’s projections extend to Bitcoin’s market dynamics as well, predicting that BTC will capture 20% of gold’s market capitalization next year. This milestone reflects the increasing perception of Bitcoin as a digital store of value, rivaling traditional assets like gold.
Also Read: MicroStrategy Boosts Bitcoin Holdings with $209 Million Purchase, Eyes More Acquisitions
These predictions underscore the transformative potential of Bitcoin and Ethereum as they gain traction across institutional and sovereign fronts. With factors such as ETF adoption, corporate integration, and DeFi expansion fueling growth, 2025 could mark a landmark year for the cryptocurrency market.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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