Galaxy Research recently released its 2025 cryptocurrency market outlook, predicting that Bitcoin will break through $150,000 in the first half of the year, with a year-end target price looking at $185,000, and is optimistic about Ethereum soaring to $5,500.
Galaxy Research analysts estimate that the adoption rate of Bitcoin at the institutional, corporate, and national levels will continue to rise, further driving Bitcoin prices to new highs in 2025, with expectations of breaking $150,000 in the first half and challenging $185,000 in the fourth quarter.
01 – Bitcoin will cross $150k in H1 and test or best $185k in Q4 2025.
A combination of institutional, corporate, and nation state adoption will propel Bitcoin to new heights in 2025. Throughout its existence, Bitcoin has appreciated faster than all other asset classes,… pic.twitter.com/KJKE1hcrSw
— Galaxy Research (@glxyresearch) December 27, 2024
Analysts mention that since its inception, Bitcoin's appreciation rate has always been faster than all other asset classes, especially the S&P 500 index and gold, and this trend is expected to continue into 2025, with Bitcoin's market cap reaching 20% of the total market cap of gold.
The report indicates that Bitcoin ETP products have attracted over $36 billion in net inflows this year, drawing in many large hedge funds and institutional investors, making it the best-performing ETP product portfolio in history. Looking ahead to 2025, Galaxy Digital estimates that the total assets under management (AUM) of U.S. Bitcoin spot ETPs will exceed $250 billion.
On the other hand, as regulatory pressures on DeFi and staking ease, Galaxy Digital is also optimistic that Ethereum will set a historical high in 2025, breaking $5,500.
The report adds that by next year, the collaboration between DeFi and traditional finance may unfold in a new regulatory sandbox environment, allowing traditional capital markets to explore public blockchains more deeply, with Ethereum and its ecosystem being the major beneficiaries.
Additionally, Galaxy Research also predicts that Dogecoin (DOGE) is expected to break $1 for the first time in 2025, with a market cap projected to reach $100 billion.
The report also mentions that the Office of the Comptroller of the Currency (OCC) in the U.S. intends to pave the way for 'banks to provide digital asset custody,' which will drive the world's four major custody banks — New York Bank, State Street Bank, JPMorgan Chase, and Citibank — to launch digital asset custody services in 2025.
Regarding whether the U.S. government will start purchasing Bitcoin next year, Galaxy Research believes that 'the chances are slim,' but it is likely to establish a 'Bitcoin strategic reserve' using existing holdings and promote discussions on expanding Bitcoin reserve policies among government departments and institutions.
"Galaxy Research predicts: Bitcoin will look to reach $185,000 next year, and Ethereum will soar past $5,500". This article was first published on (Blockcast).
