“Bitcoin and Ether Forecast to Hit Record Highs in 2025, Galaxy Research Predicts”

Bitcoin (BTC), the world’s largest cryptocurrency, is expected to reach new all-time highs next year, with predictions that it will “test or surpass” $185,000 by the fourth quarter of 2025, according to a recent report by Galaxy Research.

Ether (ETH), the second-largest cryptocurrency, is also expected to rise above $5,500 within the next 12 months, the report revealed.

Alex Thorn, the head of research at Galaxy, emphasized that a combination of institutional, corporate, and nation-state adoption will drive Bitcoin to new heights in 2025.

Galaxy forecasts that next year, five Nasdaq-100 companies and five nation-states will announce that they have added Bitcoin to their balance sheets or sovereign wealth funds. The growing competition among these countries is expected to be a key driver in the next wave of adoption.

The total assets under management (AUM) for U.S. spot Bitcoin exchange-traded funds (ETFs) is expected to exceed $250 billion in 2025, Galaxy predicts. Additionally, at least one major wealth management platform is expected to announce a Bitcoin allocation of 2% or more in 2025.

Bitcoin’s decentralized finance (DeFi) sector is also projected to experience significant growth. The total amount of Bitcoin locked in DeFi is expected to double next year, from the current $11 billion.

The trend of Bitcoin miners pivoting to high-performance computing (HPC) is expected to continue. Over half of the 20 largest listed Bitcoin mining firms are predicted to announce partnerships with artificial intelligence (AI) firms or hyperscalers in 2025.

Finally, Galaxy predicts that Bitcoin will reach 20% of gold’s market capitalization next year, further solidifying its position as a major financial asset.