Key Insights
- The introduction of the spot Bitcoin ETFs has been transformative for Bitcoin since early 2024.
- Galaxy Digital believes that by the end of the current year, these products will beat gold and surpass $250 billion in AUM.
- Galaxy Digital’s Alex Thorn believes the Bitcoin price can cross the $150,000 mark in the first half of the year or even break above the $185,000 mark by Q4.
- At least five Nasdaq-100 companies and nation-states will add Bitcoin to their balance sheets.
- The growth of Bitcoin-native DeFi platforms like Babylon will play a key role and push its TVL above $30 billion.
2024 was a major year for Bitcoin, considering the developments that made it more of a leading institutional asset.
The introduction of Spot Bitcoin ETFs at the start of the year laid the groundwork for what Galaxy Digital predicts will be an even more bullish 2025.
Here’s how Bitcoin might perform this year, according to insights from Galaxy Digital.
A Record-Breaking Year for Bitcoin ETPs
The spot ETFs in the US have been nothing short of transformative for Bitcoin (and even other digital assets).
Since their introduction, these ETPs have raked in over $36 billion in net inflows. Put simply, the spot Bitcoin ETF market now has the record for being the most successful ETP launch cohort in history.
Galaxy Digital believes that by the end of 2025, the U.S. Bitcoin ETPs will surpass $250 billion in assets under management (AUM). That, of course, will help them to challenge the dominance of the physical gold ETPs.
Bitcoin Price to Reach $185K By Late 2025
Another one of the biggest predictions from Galaxy Digital shows that Bitcoin’s price will cross the $150,000 mark in the first half of the year.
The cryptocurrency will test or break above the $185,000 mark by the final quarter of the year, fueled by a combination of factors.
From a historical perspective, Bitcoin has outperformed traditional asset classes like gold and certain stocks.
This trend might continue as the cryptocurrency captures a greater share of Gold’s market cap (expected to reach 20% by the end of the year).
Institutional, Sovereign Adoption on the Horizon
Bitcoin’s credibility as a store of value will lead to bigger announcements this year, according to Galaxy Digital. The asset manager predicts that at least five Nasdaq-100 companies and nation-states will add Bitcoin to their balance sheets.
Nation-states will also jump on the bandwagon, with the adoption of Bitcoin being fueled by strategic or portfolio diversification motives. This trend, Galaxy Digital says, will be particularly strong among countries looking to reduce dependence on the U.S. dollar.
Top wealth management platforms can also recommend a 2% or higher Bitcoin allocation to their clients. All of the above will eventually create a wave of retail and institutional inflows that boost the AUM of these ETPs.
Bitcoin Miners And The DeFi Landscape Will Boom
The demand for computational power will be driven by artificial intelligence—a development that will play a key role in reshaping the Bitcoin mining industry.
At the end of the year, more than half of the top 20 publicly traded Bitcoin miners will likely transition towards partnerships with hyperscalers and AI. This shift will inevitably moderate Bitccoin’s hashrate growth, which Galaxy Digital believes will close the year at around 1.1 Zetahashes.
Bitcoin’s integration into the defi ecosystem is another area of rapid growth. By December 2024, over $15.4 billion worth of Bitcoin was locked in defi smart contracts and staking protocols.
However, according to Galaxy Digital, this figure will nearly double in 2025, on the back of increased cbBTC/wBTC (wrapped Bitcoin) adoption.
Finally, the growth of Bitcoin-native DeFi platforms like Babylon will play a key role in these events and push the cryptocurrency’s TVL above $30 billion.