A recent report from Galaxy Research predicts that Bitcoin (BTC) will experience significant growth in the coming years, driven by increased adoption from institutional investors, corporations, and nation-states. The world’s largest cryptocurrency is expected to reach new highs, with Bitcoin potentially testing or surpassing $185,000 in the fourth quarter of 2025.
Ether (ETH), the second-largest cryptocurrency, is also expected to see substantial gains, with predictions indicating it could rise above $5,500 within the next 12 months.
Alex Thorn, Galaxy’s head of research, wrote that Bitcoin’s ascent will be fueled by a combination of institutional, corporate, and nation-state adoption. Galaxy also forecasts that by next year, five Nasdaq-100 companies and five nation-states will disclose that they have added Bitcoin to their balance sheets or sovereign wealth funds. This growing competition among nations will drive further adoption.
In terms of U.S. spot Bitcoin exchange-traded funds (ETFs), Galaxy projects that assets under management (AUM) will exceed $250 billion by 2025. Additionally, at least one major wealth management platform is expected to announce a Bitcoin allocation of 2% or more next year.
Bitcoin’s decentralized finance (DeFi) sector is also set for significant expansion, with the total value of BTC locked in DeFi expected to double from its current $11 billion.
The report also noted a growing trend of Bitcoin miners transitioning to high-performance computing (HPC), with more than half of the 20 largest publicly traded Bitcoin mining companies likely to announce partnerships with artificial intelligence (AI) firms or hyperscalers in 2025.
Finally, Galaxy predicts that Bitcoin will capture 20% of the market capitalization of gold by next year.
