Galaxy Research has made some very ambitious predictions for the cryptocurrency market in 2025: the price of Bitcoin and Ethereum will see significant moves and a surge in Bitcoin ETPs.
According to the report, Bitcoin will break $150,000 in the first half of 2025, possibly reaching $185,000 by the end of the year. That’s going to be a surge driven by institutional and state-backed adoption, continuing its historical outperformance against other assets such as the S&P 500 and gold. By 2025, Bitcoin is going to have 20% of the market capitalization of gold.
U.S. Bitcoin ETPs to exceed $250bn AUM
U.S. spot Bitcoin ETPs are also likely to see massive growth, with Galaxy Research projecting the total assets under management in Bitcoin ETPs to top $250 billion in 2025.
This growth was supported by a record $36 billion of net inflows in 2024. Major hedge funds and institutions, such as the State of Wisconsin Investment Board, already support Bitcoin ETPs.
Bitcoin will likely be one of the best performers in risk-adjusted terms in 2025 as institutional inflows continue to drive up its value. At least one wealth management platform will recommend a 2% or higher Bitcoin allocation in its model portfolios. This is a sign of growing mainstream acceptance.
Ethereum to trade above $5,500
Meanwhile, Ethereum is likely to sparkle. Regulatory clarity, coupled with the greater adoption of DeFi and staking, will make the price of Ether breach the $5,500 level in 2025.
New partnerships between DeFi and TradFi will increase the growth of Ethereum while Ethereum-based Layer 2 networks will gain more traction. NFT trading volumes will bounce back, and blockchain gaming will also continue to develop.
Meanwhile, the staking rate of Ethereum will be above 50%, driven by increasing demand and new regulatory frameworks. This will drive the staking pools of Ethereum, such as Lido and Coinbase, to new highs.
Moreover, the ETH/BTC ratio, which has been in a downtrend, will see a bounce back in the year 2025. It will close the year above 0.06 as Ethereum’s popularity increases with changes in regulation.
