Bitcoin (BTC), the world’s largest cryptocurrency, is likely to hit new highs next year and “test or surpass” $185,000 in the fourth quarter of 2025, Galaxy Research said in a report last week.
Ether (ETH), the second-largest cryptocurrency, is projected to surpass $5,500 in the next 12 months, according to the report.
“A combination of institutional, corporate and state adoption will propel Bitcoin to new heights in 2025,” wrote Alex Thorn, head of research at Galaxy.
Galaxy said it expects five Nasdaq-100 companies and five nation states to say they have added bitcoin to their balance sheets or sovereign wealth funds next year, and competition between these countries will drive the next wave of adoption, according to the report.
Total assets under management (AUM) of US spot bitcoin exchange-traded funds (ETFs) expected to surpass $250 billion in 2025, predicts Galaxy, and at least one leading wealth management platform will announce a bitcoin allocation of 2% or more next year. year.
Bitcoin decentralized finance (DeFi) is also expected to boom, Galaxy said. The total amount of BTC locked in DeFi is expected to double next year from $11 billion today.
The trend of miners moving to high-performance computing (HPC) is expected to continue, with more than half of the 20 largest publicly traded bitcoin mining companies announcing deals with artificial intelligence (AI) companies or hyperscalers in 2025, the report adds.
Bitcoin will reach 20% of gold’s market capitalization next year, the report predicted.
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