Galaxy Research forecasts significant growth in the cryptocurrency sector in 2025, highlighting BTC price potential to reach $185,000.
The firm predicts Bitcoin’s market dominance will rise, driven by institutional and nation-state adoption. Bitcoin’s performance is expected to surpass traditional assets, including gold and the S&P 500.
Alongside BTC Price, Spot Bitcoin ETPs Predicted To Soar in 2025
Galaxy Research predicts Bitcoin’s market cap will attain 20% of gold’s market cap. By the end of 2020, the assets under management of Spot Bitcoin exchange-traded products (ETPs ) may rise above $250 billion.
As evidenced by latest Bitcoin news and developments, the involvement of hedge funds, institutional investors, and state entities dramatically drives this trend. The firm expects as much as $36 billion to flow into Bitcoin ETPs in 2024.
In turn, Bitcoin ETPs will surpass U.S. physical gold ETPs by 2025. Such developments represent a major change in institutional investment strategies.
ETH/BTC Ratio Stabilizes as Interest Surges
In 2025, BTC price is likely to retain its place as the number one ranked performer risk-adjusted. The wealth management platforms may suggest an allocation of over 2 percent and more mainstream adoption.
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However, five Nasdaq 100 companies and five nation states will also announce Bitcoin holdings. While Galaxy Research anticipates Bitcoin’s protocol advances, they anticipate the consensus on key upgrades will come into effect before 2025.
The progress behind cryptocurrency shows that cryptocurrency hasn’t gone to bed yet. Bitcoin’s decentralized finance (DeFi) sector is likely to double to $30 billion.
This growth is driven by factors like the increased supply of cbBTC and WBTC and the rise of staking layers like Babylon. The layer 2 networks are also about to expand with new use cases and new opportunities for developers.
It will force many Bitcoin miners to target partnerships with high-performance computing companies.
Moving forward, this will constrain hashrate growth to 1.1 zetahashes by the end of 2025, representing a decoupling from one segment of the industry.
Analysts predict Ethereum will surpass $5,500 due to improved regulatory clarity and increasing institutional partnerships.
We expect staking activity to exceed 50% of the total circulating supply as demands for services from applications like Lido occur.
This allows Ethereum’s economic activity to rise well above that of other blockchains. From now on, the ETH/BTC ratio, according to Galaxy Research, will settle between 0.03 and 0.045.
Renewed interest in Ethereum’s application layer and DeFi ecosystem will support this trend.
U.S. Stablecoin Law Gains Bipartisan Momentum
With an increased use in payments and remittances, the stablecoin supply is expected to double to above $400 billion.
The stability we can expect with stablecoins will bring regulatory clarity to trade the promise, and the market will embrace stablecoins.
BlackRock’s BUIDL and Coinbase’s USDC Rewards are predicted to eat up some market share of Tether’s alternatives.
Bipartisan support for the legislation will likely lead to the passing of a stablecoin law in the United States.
Reforms in broader market structures may, however, come later. Further, Bitcoin news saw Galaxy Research anticipating a US government increase in Bitcoin reserves.
The cryptocurrency sector will likely draw venture capital investment in excess of $150 billion by 2025. Experiments to increase diversity and participation in decentralized decision-making are will likely gain traction with on-chain governance.
DeFi is entering its “dividend era,” with a $1 billion value going back to users through buybacks and revenue sharing.
BNY Mellon and JPMorgan Chase may grow their digital asset services in custody banks. However, with Dogecoin’s adoption in other use cases, the market cap may reach $100 billion.
