Explosive Crypto Market Forecast for 2025: Bitcoin and Ethereum Lead the Rise

The year 2024 is coming to an end, and with it, predictions for the future of the cryptocurrency market are starting to gain momentum. Recently, Galaxy Research released its projections for the cryptocurrency market in 2025, painting a very optimistic scenario, with emphasis on Bitcoin and the Ethereum . The analyses range from institutional adoption to the development of new technologies, offering a comprehensive view of what we can expect in the coming years.

Galaxy Research predicts that Bitcoin will surpass the $150.000 mark in the first half of 2025, and could reach $185.000 by the end of the year. This growth would be driven by increasing institutional, corporate, and even national adoption.

“Bitcoin will surpass $150K in H185 and test or surpass $2025K in Q2025 XNUMX. A combination of institutional, corporate and nation-state adoption will propel Bitcoin to new heights in XNUMX. Over its lifetime, Bitcoin has appreciated faster than all other asset classes,” he projected.

Ethereum is also set to perform remarkably well in the coming year, with a predicted price above $5.500, driven by regulatory clarity and partnerships between decentralized finance (DeFi) and traditional finance (TradFi).

In addition to price projections, Galaxy Research also addressed in its report other important trends for the cryptocurrency market in 2025. According to the survey, the total value of Bitcoin ETPs (Exchange Traded Products) in the US is expected to exceed US$250 billion, reflecting increased interest from institutional and retail investors.

“US spot Bitcoin ETPs will collectively surpass $250 billion in AUM by 2025. In 2024, Bitcoin ETPs collectively received over $36 billion in net inflows, making it the best ETP launch as a cohort in history. Many of the world’s top hedge funds have purchased Bitcoin ETPs.”

Furthermore, Bitcoin is also expected to emerge as a top asset, outperforming most other global assets in terms of risk and return. “Bitcoin will once again be among the best performing global assets on a risk-adjusted basis in 2025. The above AUM comparison is due to both record inflows and Bitcoin’s price appreciation throughout 2024. In fact, Bitcoin is the third best performing asset on a risk-adjusted basis.”

Institutional adoption is set to accelerate, with major financial platforms recommending at least 2% of portfolios be allocated to Bitcoin. Additionally, Galaxy Research predicts that five major Nasdaq-listed companies and five countries will add Bitcoin to their reserves, solidifying the cryptocurrency’s role as a global asset.

“Five Nasdaq 100 companies and five nation states will announce that they have added Bitcoin to their balance sheets or sovereign wealth funds. Whether for strategic reasons, portfolio diversification or trade settlement, Bitcoin will begin to find a home on balance sheets,” he highlighted.

Technological developments will also play a major role in 2025. A significant update to the Bitcoin protocol is expected, with new features to improve functionality and scalability. Partnerships between Bitcoin mining companies and AI and high-performance computing companies are also expected to increase, seeking greater mining efficiency and reduced environmental impact. In addition, the amount of Bitcoin used in DeFi is expected to nearly double, demonstrating the cryptocurrency’s growing utility beyond just being a store of value.