Galaxy Research Predicts Bitcoin at $185,000 and Ethereum Above $5,500 by 2025
Galaxy Research, led by Alex Thorn, has released a 2025 forecast predicting significant price movements and regulatory changes for major cryptocurrencies including Bitcoin (BTC), Ethereum (ETH), and Dogecoin (DOGE).
Bitcoin On Track For $185,000 By Year-End 2025
Galaxy Research forecasts Bitcoin may exceed $150,000 in the first half of 2025, potentially reaching or surpassing $185,000 by year-end. This outlook is supported by increasing institutional, corporate, and nation-state adoption.
Historically, Bitcoin has outperformed traditional asset classes, capturing around 20% of gold's market capitalization.
US spot Bitcoin exchange-traded products (ETPs) are expected to surpass $250 billion in assets under management (AUM) by 2025. In 2024, these ETPs recorded over $36 billion in net inflows, attracting investments from hedge funds and institutional players.
Galaxy Research anticipates that at least one wealth management platform will recommend a Bitcoin allocation of 2% or more, driving further inflows into Bitcoin ETPs.
Consensus on significant protocol upgrades among Bitcoin developers is also anticipated, which include enhancements for transaction programmability.
Dogecoin Poised For Resurgence
Ethereum is projected to trade above $5,500 in 2025 due to easing regulatory constraints on decentralized finance (DeFi) and increased institutional interest. Staking rates for Ethereum are expected to exceed 50%, with potential for spot-based ETH ETPs to stake a portion of their holdings.
The DeFi market on Bitcoin is also likely to grow significantly, with the amount of Bitcoin locked in smart contracts potentially doubling by 2025.
Dogecoin is predicted to reach a market cap of $100 billion, possibly crossing the $1 mark due to institutional adoption and new regulatory frameworks affecting meme-based cryptocurrencies.
In regulatory developments, bipartisan legislation governing stablecoin issuance is anticipated by the end of 2025, establishing a clear framework for issuers.
Currently, BTC trades at $94,648, reflecting a 1% loss in the last 24 hours. ETH is priced at $3,359, showing a 1% increase, while DOGE stands at $0.314 with minimal gains of 0.5% during the same period.
Featured image from DALL-E, chart from TradingView.com