According to a report from Galaxy Research, Bitcoin (BTC) is expected to reach a record high of around $185,000 in Q4 2025, thanks to increased adoption among institutional investors, corporations, and nations.
Fundamental Predictions for Bitcoin and Ethereum
Bitcoin (BTC): Expected to 'test or peak' at $185,000 by the end of 2025.
Ethereum (ETH): Predicted to exceed $5,500 in the next 12 months.
Alex Thorn, head of research at Galaxy, said: 'The combination of institutional, corporate, and national adoption will elevate Bitcoin to new heights by 2025.'
National and corporate adoption: Galaxy predicts that five Nasdaq-100 companies and five nations will add Bitcoin to their balance sheets or national investment funds.
U.S. Bitcoin ETF: Assets under management (AUM) in U.S. spot Bitcoin exchange-traded funds are expected to exceed $250 billion by 2025.
Asset management platforms: At least one major platform is expected to announce a Bitcoin allocation of 2% or higher next year.
The decentralized finance (DeFi) sector will see significant growth, with the total BTC locked in DeFi protocols expected to double from the current $11 billion.
Meanwhile, the mining sector seems poised to continue shifting towards high-performance computing (HPC).
Galaxy predicts that more than half of the top 20 publicly traded Bitcoin mining companies will partner with artificial intelligence (AI) companies or super-scale firms by 2025.
The report also predicts that Bitcoin will achieve 20% of the market value of gold next year, reinforcing its position as a digital store of value and a competitor to traditional assets.
