Galaxy Research predicts BTC to hit $185,000 by 2025

On December 28, Galaxy Research published the article Crypto Predictions 2025, which offers comprehensive predictions about the crypto market in the coming year. This article covers many aspects, from Bitcoin and Ethereum prices, DeFi developments, stablecoins, layer 2, regulatory policies to investment trends. These are in-depth and detailed analyses that aim to outline the future of the digital asset industry in 2025.

Bitcoin is expected to surpass the $150,000 mark in the first half of 2025 and peak at $185,000 in Q4/2025. Widespread acceptance from financial institutions, large corporations and nations will be the impetus for Bitcoin's continued growth, accounting for up to 20% of gold's market capitalization.

In addition, spot Bitcoin ETP funds in the US are expected to reach more than $250 billion in assets under management (AUM), thanks to strong capital inflows from institutional investors. Bitcoin is also forecast to continue to be one of the world's best-performing risk-adjusted assets, with MicroStrategy holding the lead in terms of the Sharpe ratio (profit/risk ratio).

Notably, at least five Nasdaq 100 companies and five countries will announce the addition of Bitcoin to their balance sheets or national wealth funds.

Ethereum is no less prominent, with ETH's price predicted to exceed $5,500 by 2025. The growth momentum comes from the collaboration between DeFi and traditional finance, as well as the use of Ethereum by businesses to develop layer 2 and public blockchain applications.

Ethereum's staking rate is expected to exceed 50% of circulating supply, causing staking protocols such as Lido and EigenLayer to skyrocket in value. At the same time, the ETH/BTC ratio will drop below 0.03 by mid-year but recover above 0.06 by the end of the year, thanks to the return of investor interest in Ethereum and DeFi.

In the DeFi sector, the total Bitcoin DeFi market value is predicted to double, reaching $30 billion thanks to the expansion of staking platforms and DeFi protocols on Ethereum and Bitcoin layer 2. Protocols like Babylon and staking solutions will play an important role in driving growth.

DeFi will also enter the “dividend era,” with more than $1 billion shared from funds and revenue. Protocols such as Uniswap and Lido could deploy profit-sharing mechanisms to compete, while other new governance models will be tested to increase voting efficiency and diversity.

Stablecoins are also a bright spot in Galaxy Research's forecast. The total supply of stablecoins is expected to exceed $400 billion by 2025, with at least 10 new stablecoins launched through partnerships with traditional financial institutions.

However, Tether would lose its dominant position when its market share fell below 50%, giving way to interest-bearing stablecoins such as USDC rewards and other innovative products. At the same time, legislation on stablecoins will be passed in the US, creating a clear legal basis for stablecoin issuers, although regulations on the structure of the crypto market are yet to be finalized next year.

In addition, Galaxy Research estimates that the total supply of stablecoins will exceed $400 billion in 2025, in addition to being used more for computing and money transfers in both traditional and web3 markets.

In addition, Dogecoin is predicted to reach the $1 mark, bringing its market capitalization to $100 billion, consolidating its position as the largest memoin. Venture investment in the crypto sector will rise sharply, exceeding $150 billion, thanks to lower interest rates and greater regulatory clarity. The world's leading custodial banks, including JPMorgan and Citi, will offer digital asset custody services, boosting the participation of major financial institutions.

Galaxy Research believes 2025 will be a breakthrough year for the crypto industry, with major trends from technology, policy to investment shaping the future of the digital asset space.