Galaxy Research has released a positive forecast for the cryptocurrency market for 2025. Bitcoin and Ethereum are expected to see significant price increases due to widespread institutional adoption and technological advancements.
Bitcoin's Rise Through Institutional Adoption
Galaxy Research anticipates Bitcoin will reach $185,000 by the end of 2025. A major factor contributing to this growth is the increasing demand from institutional investors. By 2025, assets under Bitcoin ETPs are expected to reach $250 billion, potentially making Bitcoin more popular than physical gold ETPs. The forecast also suggests that five Nasdaq 100 companies and five sovereign nations could add Bitcoin to their balance sheets. Wealth management plays a crucial role, with a 2% portfolio allocation in Bitcoin recommended by major management platforms.
Ethereum's Growth Via Staking and DeFi
Galaxy Research expects Ethereum to trade above $5,500, driven by ongoing developments in its staking ecosystem and a DeFi resurgence. By 2025, half of Ethereum's total supply is anticipated to be staked, enhancing both security and scalability. Layer 2 solutions like Optimism and Arbitrum will aid Ethereum's scalability and transaction cost efficiency. A resurgence in the NFT market could also drive demand for Ethereum, the leading blockchain for NFTs. The DeFi sector entering a 'Dividend Era' could stimulate Ethereum's demand as well.
Mining Changes and Their Implications
Galaxy Research predicts substantial shifts in the mining landscape. More than half of the top 20 publicly traded Bitcoin miners are expected to diversify by partnering with hyperscale data centers and AI companies, providing new revenue streams. This transition aims to stabilize Bitcoin's hash rate, anticipated to be 1.1 by the end of 2025, thus improving security and mining efficiency.
The overall 2025 forecast indicates substantial growth for Bitcoin and Ethereum driven by institutional adoption and new technological ecosystems. These factors could enhance cryptocurrency attractiveness and promote broad integration.
