Galaxy Research predicts significant growth in the cryptocurrency sector in 2025, noting the potential for the price of BTC to reach $185,000.
The company predicts that Bitcoin’s market dominance will grow, driven by adoption in institutions and countries. Bitcoin’s performance is expected to outperform traditional assets, including gold and the S&P 500.
With the price of BTC, Spot Bitcoin ETPs are predicted to rise in 2025
Galaxy Research predicts that the market capitalization of Bitcoin will reach 20% of the market capitalization of gold. By the end of 2020, assets under management of Spot Bitcoin exchange-traded products (ETPs) could rise above $250 billion.
As evidenced by recent Bitcoin news and developments, the involvement of hedge funds, institutional investors and government bodies is dramatically driving this trend. The company expects as much as $36 billion to flow into Bitcoin ETPs in 2024.
In turn, Bitcoin ETPs will surpass US physical gold ETPs by 2025. Such a development represents a major shift in institutional investment strategies.
The ETH/BTC ratio stabilizes as interest rates rise
In 2025, the price of BTC is likely to maintain its place as the number one risk-adjusted performer. Asset management platforms can suggest allocations of over 2 percent and more adoption.
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However, five Nasdaq 100 companies and five nation states will also declare their holdings of Bitcoin. While Galaxy Research predicts the progress of the Bitcoin protocol, they predict that consensus on key upgrades will take effect before 2025.
The progress behind the cryptocurrency shows that the cryptocurrency is not yet asleep. Bitcoin’s decentralized finance (DeFi) sector is likely to double to $30 billion.
This growth is driven by factors such as the increased supply of cbBTC and WBTC and the rise of stake tiers like Babylon. Layer 2 networks will also expand with new use cases and new opportunities for developers.
This will force many Bitcoin miners to target partnerships with high-performance computing companies.
In the future, this will limit the hashrate growth to 1.1 zetahashes by the end of 2025, which represents a separation from one segment of the industry.
Analysts predict that Ethereum will surpass $5,500 due to improved regulatory clarity and an increase in institutional partnerships.
We expect share activity to exceed 50% of the total circulating supply as requests for services from applications such as Lido arise.
This allows the economic activity of Ethereum to grow well above other blockchains. From now on, the ETH/BTC ratio will settle between 0.03 and 0.045, according to Galaxy Research.
Renewed interest in Ethereum’s application layer and DeFi ecosystem will support this trend.
US stablecoin bill gains bipartisan momentum
With increased use in payments and remittances, stablecoin supply is expected to double to more than $400 billion.
The stability we can expect with stablecoins will bring regulatory clarity to promised trading and the market will embrace stablecoins.
BlackRock’s BUIDL and Coinbase’s USDC Rewards are predicted to eat up some of the market share of Tether alternatives.
Bipartisan support for the bill is likely to lead to stablecoin legislation in the United States.
Reforms in broader market structures may, however, come later. Furthermore, in Bitcoin news, Galaxy Research predicts an increase in Bitcoin reserves from the US government.
The cryptocurrency sector is likely to attract more than $150 billion in venture capital investment by 2025. Experiments to increase diversity and participate in decentralized decision-making are likely to gain traction with chain management.
DeFi is entering its “dividend era,” with $1 billion in value being returned to users through buybacks and revenue sharing.
BNY Mellon and JPMorgan Chase could expand their digital asset services at custodial banks. However, with the adoption of Dogecoin in other use cases, the market capitalization could reach $100 billion.
