KeyTakeaways:
- Bitcoin’s price to rise as more institutions invest in Bitcoin ETPs and add it to portfolios.
- Staking, DeFi, and improvements in scalability and fees power Ethereum’s growth.
- The NFT market revival and Layer 2 solutions will boost Ethereum’s value and demand.
Galaxy Research has released a bullish forecast for Bitcoin and Ethereum in 2025, projecting their price increases driven by growing institutional interest, technological advancements, and the expansion of decentralized finance (DeFi).
The firm’s analysis suggests that Bitcoin could surge to $185,000, while Ethereum is expected to exceed $5,500, marking a more than three times increase for both crypto assets.
However, Bitcoin’s expected price surge is largely attributed to the growing demand for Bitcoin Exchange-Traded Products (ETPs) in the U.S. These products, particularly spot Bitcoin ETPs, are drawing the attention of institutional investors, such as hedge funds, corporate entities, and sovereign wealth funds. Galaxy forecasts that Bitcoin ETPs could amass $250 billion in assets by 2025, rivaling the popularity of physical gold ETPs.
As more institutions allocate Bitcoin into their portfolios, demand for the token will grow, pushing its price upward. Galaxy also predicts that by mid-2025, Bitcoin will surpass the $150,000 mark and could reach $185,000 by the end of the year.
Bitcoin’s role as a key asset in wealth management is also highlighted, with large wealth management platforms recommending a 2% portfolio allocation to Bitcoin. This shift is expected to increase exposure to Bitcoin among high-net-worth individuals and corporations, further boosting its value.
Ethereum’s Growth Driven by Staking and DeFi Expansion
Ethereum’s anticipated rise to over $5,500 is fueled by its shift to a proof-of-stake consensus mechanism, which enhances transaction speed and security. Additionally, the ongoing development of Ethereum’s staking network is expected to play a major role in increasing the blockchain’s scalability.
By 2025, Galaxy forecasts that half of Ethereum’s total supply will be staked, strengthening its security and improving its ability to handle more transactions.
Additionally, the growth of DeFi and Layer 2 (L2) solutions is a crucial factor driving Ethereum’s development. Ethereum’s Layer 2 solutions, such as Optimism and Arbitrum, are anticipated to improve scalability and lower transaction fees, enhancing Ethereum’s appeal to businesses and developers.
The increasing adoption of Ethereum in the NFT market and the expected revival of this sector could also boost its price. Galaxy suggests that the combination of NFT growth and Ethereum’s ongoing technological advancements will further increase demand for the blockchain.
