Galaxy Research, a digital asset and blockchain firm headed by Alex Thorn, recently unveiled a forecast for 2025, spotlighting major cryptocurrency trends. Their analysis hinges on the anticipated price shifts and regulatory evolutions for key players in the crypto sphere, such as Bitcoin (BTC), Ethereum (ETH), and Dogecoin (DOGE).
Bitcoin’s Potential Surge to $185,000
The forecast suggests that Bitcoin could soar past $150,000 in early 2025, potentially reaching $185,000 by the year’s end. This optimistic projection is fueled by an increasing embrace from institutions, corporations, and even governments. Historically, Bitcoin has consistently outperformed traditional investments like the S&P 500 and gold. With a growing hold of around 20% of gold’s market cap, this trend looks set to endure.
The analysis anticipates that U.S. spot Bitcoin exchange-traded products (ETPs) will amass over $250 billion in assets under management by 2025. In 2024 alone, these ETPs witnessed over $36 billion in net inflows, marking them as the most successful debut in history, drawing the interest of major hedge funds and institutional investors.
As Bitcoin strengthens its standing, Galaxy Research predicts that one well-known wealth management platform will likely endorse a Bitcoin allocation of at least 2%. This change is expected to further boost investments into Bitcoin ETPs, enhancing their overall assets under management. The report also mentions the potential for significant protocol upgrades among Bitcoin developers, a historically challenging consensus to reach, with improvements aimed at enhancing transaction programmability.
Dogecoin’s Revival
As for Ethereum, it is predicted to break the $5,500 mark in 2025. This growth is attributed to relaxed regulatory hurdles on decentralized finance (DeFi) and a spike in institutional interest. Galaxy Research foresees Ethereum staking rates exceeding 50%, potentially allowing spot-based ETH exchange-traded funds to stake some of their ETH holdings.
The DeFi market for Bitcoin is also projected to expand considerably. The volume of Bitcoin locked in DeFi smart contracts may nearly double in 2025, according to the firm.
In the case of Dogecoin, the forecast indicates its market cap might hit $100 billion, potentially passing the $1 threshold. This growth is anticipated amidst broader market trends, including institutional adoption and new regulatory pathways that could shape the future of meme-based cryptocurrencies.
Regulatory-wise, Galaxy Research expects that bipartisan legislation around stablecoin issuance will be in place by the end of 2025, offering clear guidelines for issuers.
Currently, Bitcoin trades at $94,648, marking a 1% dip in the past 24 hours. On the other hand, Ethereum is valued at $3,359, registering a 1% gain over the same period. Dogecoin sits at $0.314, with a slight 0.5% uptick.
Image courtesy of DALL-E; chart from TradingView.com.
