Galaxy Research, a renowned digital asset and blockchain analysis company, has unveiled its projections for 2025, led by their head of research, Alex Thorn. This forecast anticipates notable price movements and substantial regulatory shifts across leading cryptocurrencies, such as Bitcoin (BTC), Ethereum (ETH), and Dogecoin (DOGE).
Bitcoin’s Bullish Path Towards $185,000 by End of 2025
The report from Galaxy Research suggests that Bitcoin is on a promising trajectory, potentially surpassing the $150,000 mark in the first half of 2025. By the year’s end, Bitcoin could achieve or even exceed $185,000. This optimistic prediction is fueled by the growing adoption of Bitcoin by institutions, corporations, and even nation-states.
Over the years, Bitcoin has consistently outperformed traditional asset classes like the S&P 500 and gold. This trend is poised to continue as Bitcoin aims to capture around 20% of gold’s market capitalization.
Significant Growth in US Spot Bitcoin Exchange-Traded Products
The forecast highlights the anticipated growth of US spot Bitcoin exchange-traded products (ETPs), which are expected to amass over $250 billion in assets under management by 2025. In 2024 alone, these ETPs recorded net inflows exceeding $36 billion, marking them as the most successful launch cohort in history. This surge in investment is attracting major hedge funds and institutional investors.
As Bitcoin solidifies its status as a premier asset, Galaxy Research predicts that at least one prominent wealth management platform will advocate for a Bitcoin allocation of 2% or more. This shift is likely to drive further inflows into Bitcoin ETPs, thereby increasing their assets under management.
Enhancements in Bitcoin’s Transaction Programmability
The report also points to the possibility of achieving consensus on significant protocol upgrades among Bitcoin developers. Historically challenging to accomplish, these upgrades are expected to include enhancements that improve transaction programmability.
Dogecoin and Ethereum: Anticipating a Resurgence
Ethereum is projected to trade above $5,500 in 2025, spurred by a relaxation of regulatory constraints on decentralized finance (DeFi) and heightened institutional interest. Galaxy Research anticipates Ethereum staking rates to exceed 50%, with the potential for spot-based ETH exchange-traded funds to stake a portion of their holdings.
The DeFi market on Bitcoin is also forecasted to experience substantial growth. The amount of Bitcoin locked in DeFi smart contracts could nearly double by 2025, reflecting the increasing integration of Bitcoin into this innovative financial ecosystem.
Dogecoin’s Potential to Reach a $100 Billion Market Cap
In terms of Dogecoin, the report envisions a market cap reaching $100 billion, possibly crossing the $1 threshold. This growth is attributed to broader market dynamics, including institutional adoption and the emergence of new regulatory frameworks that could shape the future of meme-based cryptocurrencies.
On the regulatory front, Galaxy Research foresees the enactment of bipartisan legislation governing stablecoin issuance by the end of 2025. This legislation is expected to provide a clear framework for issuers, offering much-needed clarity in the regulatory landscape.
Current Cryptocurrency Market Overview
As of now, BTC is trading at $94,648, reflecting a 1% loss in the last 24 hours. In contrast, Ethereum is priced at $3,359, showcasing a 1% increase during the same period. Dogecoin is valued at $0.314, with minimal gains of just 0.5% noted within this timeframe.
