Galaxy Research shared its big year-end predictions for 2025, expecting Bitcoin to surpass $150,000 and Ethereum to grow even stronger. The report also talks about major changes in DeFi, stablecoins, and how institutions might adopt crypto in the coming years.

Bitcoin and Ethereum will go higher

Bitcoin is expected to surpass $150,000 in the first half of the year, potentially reaching $185,000 by year-end, driven by institutional, enterprise, and even nation-state adoption. Ethereum will also shine, with its price expected to rise above $5,500, driven by regulatory clarity and partnerships between decentralized finance (DeFi) and traditional finance (TradFi).

US Bitcoin Spot ETP Growth

The total value of Bitcoin exchange-traded products (ETPs) in the United States will exceed $250 billion. This growth reflects the growing interest in Bitcoin from institutions and retailers.

Bitcoin is a top asset

Bitcoin will outperform most other assets globally when it comes to risk and return. Its resilience will make it a favorite choice for both retail and institutional investors.

Asset Management Allocation

Leading financial platforms will recommend allocating at least 2% of their portfolio to Bitcoin. This will encourage more investors to include Bitcoin in their long-term plans.

Corporate and national application

Five major Nasdaq-listed companies and five countries will add Bitcoin to their reserves. This will cement Bitcoin's role as a global asset for both corporations and countries.

Bitcoin Protocol Upgrade

Developers will agree on significant upgrades to Bitcoin technology. This could include new features to improve functionality and scalability.

Mining Partnership with AI

More than half of the top Bitcoin mining companies will partner with AI or high-performance computing companies. These partnerships will improve mining efficiency and reduce environmental impact.

Bitcoin in DeFi

The amount of Bitcoin used in decentralized finance (DeFi) will nearly double, demonstrating Bitcoin's growing utility beyond just a store of value.

Ethereum Staking Boom

More than 50% of the Ethereum supply will be staked, showing confidence in its long-term value. Staking will also enhance the security of the network.

ETH/BTC Ratio Fluctuation

Ethereum's value against Bitcoin will fall below $0.03 but recover to over $0.06 by the end of the year, reflecting the change in investor sentiment throughout the year.

Class 2 Domination

Layer 2 networks will generate more activity than alternative layer 1 blockchains. They will provide faster and cheaper transactions, attracting more users.

The Era of DeFi Dividends

Decentralized applications will distribute at least $1 billion in rewards to users. This marks a shift towards sharing profits with participants.

The Resurgence of On-Chain Governance

DeFi projects will experiment with new governance models to involve users in decision making. This will make the ecosystem more decentralized and innovative.

Custodian Banks Get Into Cryptocurrencies

The world's four largest custodian banks will start offering cryptocurrency services, bridging the gap between traditional finance and digital assets.

New Stablecoin

At least ten new stablecoins will be launched, backed by traditional financial partners. These stablecoins will bring more liquidity and trust to the market.

Stablecoin Supply Surges

The total supply of stablecoins will double to over $400 billion, reflecting the growing demand for blockchain-based stable assets.

Tether's Declining Market Share

Tether dominance will fall below 50%, facing competition from alternatives like USDC and new services like BlackRock's BUIDL.

Crypto Venture Capital Boom

Venture capital investment in crypto will exceed $150 billion, up more than 50% year-on-year. This influx of capital will fuel innovation across the industry.

Stablecoin Law

The US Congress is set to pass legislation governing stablecoins, which President Trump will sign in 2025. However, broader regulations for the cryptocurrency market remain unresolved.

US Bitcoin Reserves

The US government will not buy more Bitcoin but will use existing Bitcoin to build reserves. Agencies will explore policies for managing Bitcoin reserves.

SEC Investigates Prometheum

The SEC is investigating Prometheum, a dedicated broker-dealer. This could set a precedent for how cryptocurrency platforms should be regulated.

Dogecoin Hits $1

Dogecoin will eventually hit $1, with a market cap that will skyrocket to $100 billion. This will make memecoin a major player in the cryptocurrency world.

Year-end predictions are setting an optimistic tone for 2025, although markets are also cautious about a potential market crash once Trump takes office. Until then, it’s all speculation.

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