Galaxy Research sees significant growth for Bitcoin and Ethereum in 2025, where Bitcoin may reach $185,000, and that for Ethereum will rise above $5,500. This growth is expected to come from more institutions using these cryptocurrencies, along with improvements in Ethereum’s technology and the rise of decentralized finance (DeFi).
Galaxy Research issued positive forecast on the cryptocurrency market, which stated that Bitcoin (BTC) and Ethereum (ETH) would more than triple by 2025. According to the firm, BTC will hit $185,000, and ETH will go up to $5,500 by 2025 as more institutional, corporate, and sovereign entities come on board.
Bitcoin’s rise driven by Institutional adoption and ETP demand
Galaxy precisely noted that Bitcoin will pass the $150,000 mark during the first half of 2025, and increase further up to $185,000 at the end of the year. One major reason behind this growth is the increasing demand for Bitcoin ETPs in the U.S. – especially spot ones.
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
With big hedge funds and institutional investors getting involved, Bitcoin ETPs could reach $250 billion in assets by 2025, per the report. This means Bitcoin could become more popular than physical gold ETPs, helping Bitcoin become even more mainstream.
Galaxy also predicts that Bitcoin will become a significant investment for both companies and government-backed wealth funds. The firm believes that by 2025, as many as five Nasdaq 100 companies and five sovereign nations could add Bitcoin to their balance sheets.
In addition to institutional adoption, Galaxy points out Bitcoin’s role in wealth management. Significant wealth management platforms will recommend allocating a piece of portfolios to Bitcoin, a recommended 2% allocation. This would further increase the demand for the cryptocurrency, further pushing prices higher as more high-net-worth individuals and firms get exposure to Bitcoin.
Ethereum’s rise powered by staking and DeFi development
On the other hand, Ethereum should trade above $5,500 by 2025 because of the continued steady development in its staking ecosystem and the resurgence of DeFi, per the report. Other reasons Ethereum will do well include switching to a proof-of-stake system, which makes transactions faster and safer.
Galaxy also predicts that by 2025, half of Ethereum’s total supply will be staked. As more people join in, Ethereum’s security and ability to handle more transactions will improve, making it more attractive to both small users and big companies.
It further added that L2s, like Optimism and Arbitrum, will help Ethereum in terms of scalability and transaction fees. This Layer 2 solution is expected to provide great corporate experimentation. Since the solutions will enable greater, smoother scaling for Ethereum users and businesses, Galaxy looks forward to large-scale adoption.
Another factor that would send the Ethereum price up is if there would be a new and vibrant resurgence in the NFT market. The fact that the NFT market slowed down a bit doesn’t diminish its potential for a strong rebirth, according to Galaxy, especially in 2025.
With the NFT market’s resurgence in relevance, so is its demand for Ethereum as the prime blockchain for NFTs. Ethereum’s price is increasing toward reaching an even more substantial one this year.
The DeFi sector which enters into a “Dividend Era” a major growth area for Ethereum, is also expected to continue expanding. Galaxy believes the Bitcoin DeFi market might double by 2025 as Bitcoin Layer 2 solutions are implemented, and the total value locked in existing and emerging DeFi protocols grows. This will spur the overall DeFi application market and increase demand for Ethereum, which underlies most of the projects.
Regarding mining, Galaxy Research also sees drastic shifts in the mining landscape: More than half of the top 20 publicly traded Bitcoin miners are expected to diversify by teaming up with hyperscale data centers and AI companies.
This way, they will benefit from new cash flows as the industry stabilizes at all costs for the sake of the Bitcoin network. It is observed that bitcoin hash rate increases are anticipated to stabilize further at 1.1 by the end of 2025. Overall, it means the strategic shifting will have security and efficiency regarding the process of Bitcoin mining.
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