Key Takeaways:
- Bitcoin is projected to surpass $150,000 in early 2025 and potentially exceed $185,000 by Q4.
- U.S. spot Bitcoin ETPs are expected to cross $250 billion in assets under management (AUM).
- Ethereum is forecasted to break $5,500, with its staking rate surpassing 50% in 2025.
Galaxy Research makes the radical prediction that Bitcoin will have a price rally in 2025 as far as adoption by institutions, corporates, and states goes. The report predicts that BTC could break above $150,000 in the first half of the year before it possibly tests or clears $185,000 on its way up in Q4.
Historically outperforming store-of-value assets like gold and the S&P 500, Bitcoin is likely to extend its lead. Up to 20% more of the market capitalization of gold could be sopped up by the cryptocurrency as it underpins a change in its status from pure speculation to store-of-value. This increase in momentum will be stirred up by the increasing integrations across the mainstream and greater financial recognition.
U.S. Spot Bitcoin ETPs Poised to Exceed $250B AUM by 2025
It projects that U.S. spot Bitcoin ETPs will collectively surpass $250 billion in AUM by 2025. This comes after the record $36 billion net inflow in 2024 and positions Bitcoin ETPs as the most successful financial product launch ever.
Large hedge funds and state-level investment boards already have positions in these products. Bitcoin ETPs may overtake the total AUM of all U.S. physical gold ETPs by the end of 2025, reflecting growing investor interest in regulated crypto investment vehicles.
Ethereum’s Resurgence and Staking Growth
Galaxy Research estimates also show that Ethereum will further witness new highs in 2025, where it is believed this asset will scale past $5,500. Improvement in regulatory clarity, more institutional participation in DeFi, and Layer 2 developments are expected to catalyze growth in Ethereum.
The staking rate will also be over 50% of Ethereum’s circulating supply, with increasingly greater confidence in Ethereum’s long-term value proposition. This new rush to stake will serve to further solidify chains like Lido and Coinbase, restake protocols like EigenLayer, and once more permanently cement Ethereum as the main chain for decentralized applications and financial infrastructure.
Nevertheless, Galaxy Research’s forecast shows Bitcoin and Ethereum in high-end scenarios, and indeed, there are signals that the current year may be really transitional for the cryptocurrency market, given that regulation frameworks are currently fast-developing and institutions show growing interest; so, all is just set to drive growth beyond one’s imagination within this whole digital asset space.
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