Galaxy Research, led by Research Director Alex Thorne, predicts significant price volatility and regulatory changes for Bitcoin (BTC), Ethereum (ETH), and Dogecoin (DOGE) in 2025.
Bitcoin could hit $185,000 by 2025
Galaxy Research expects Bitcoin to surpass $150,000 in the first half of 2025 and $185,000 by the end of the year. This positive forecast is supported by increased adoption by institutions, businesses, and countries.
Since it owns 20% of the gold market value, Bitcoin is expected to continue outperforming the S&P 500 and gold.
Bitcoin exchange-traded products (ETPs) in the United States are expected to reach $250 billion in asset management by 2025, according to the analysis.
These products were the most successful to launch, attracting hedge funds and institutional investors with more than $36 billion in net inflows in 2024.
Galaxy Research expects at least one money management platform to propose investing 2% in Bitcoin when Bitcoin becomes a dominant asset. These changes should increase the asset management of Bitcoin ETPs by boosting inflows.
Research also suggests that Bitcoin developers will agree on major changes to the protocol, including improvements to transaction programming, which have been difficult to implement.
Dogecoin may make a comeback
Ethereum is expected to trade above $5,500 in 2025 due to improving legal conditions for decentralized finance (DeFi) and institutional interest.
Galaxy Research expects Ethereum participation rates to exceed 50%, with Ethereum-based exchange-traded funds (ETFs) likely to place some of their own Ethereum.
Bitcoin’s decentralized finance (DeFi) sector should also boom. The firm predicts that DeFi smart contracts will lock nearly twice as much as Bitcoin by 2025.
Research also predicts that Dogecoin could reach $100 billion, and possibly as low as $1, due to institutional adoption and new legal frameworks that could impact meme-based cryptocurrencies.