Crypto Market Prediction 2025: Galaxy Research’s Bold Insights on Bitcoin, DeFi, and Stablecoins

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Crypto Market Prediction 2025

The post Crypto Market Prediction 2025: Galaxy Research’s Bold Insights on Bitcoin, DeFi, and Stablecoins appeared first on Coinpedia Fintech News

Galaxy Research has shared its year-ending big predictions for 2025, expecting Bitcoin to go over $150,000 and Ethereum to grow even stronger. The report also talks about big changes in DeFi, stablecoins, and how institutions might embrace crypto in the coming years. 

🚨 Crypto Predictions for 2025 from @glxyresearch

Featuring… bitcoin and ether price, ETHBTC, both Dogecoin and D.O.G.E., stablecoins, defi, L2s, policy, VC, and more…

Here are the predictions we just sent to @galaxyhq clients and counterparties 👇

— Galaxy Research (@glxyresearch) December 27, 2024

Bitcoin and Ethereum to Go Higher 

Bitcoin is expected to surpass $150,000 in the first half of the year, potentially hitting $185,000 by year-end, driven by institutional, corporate, and even nation-state adoption. Ethereum, too, is set to shine, with its price predicted to climb above $5,500, fueled by regulatory clarity and partnerships between decentralized finance (DeFi) and traditional finance (TradFi).

US Spot Bitcoin ETP Growth

The total value of Bitcoin exchange-traded products (ETPs) in the U.S. will exceed $250 billion. This growth reflects increased institutional and retail interest in Bitcoin.

Bitcoin as a Top Asset

Bitcoin will outperform most other assets globally when considering risk and returns. Its resilience will make it a favorite for both retail and institutional investors.

Wealth Management Allocation

Leading financial platforms will recommend allocating at least 2% of portfolios to Bitcoin. This will encourage more investors to include Bitcoin in their long-term plans.

Corporate and National Adoption

Five major Nasdaq-listed companies and five countries will add Bitcoin to their reserves. This will solidify Bitcoin’s role as a global asset for both corporations and nations.

Bitcoin Protocol Upgrade

Developers will agree on a significant upgrade to Bitcoin’s technology. This could include new features to improve functionality and scalability.

Mining Partnerships with AI

Over half of the top Bitcoin mining companies will partner with AI or high-performance computing firms. These collaborations will enhance mining efficiency and reduce environmental impact.

Bitcoin in DeFi

The amount of Bitcoin used in decentralized finance (DeFi) will nearly double. This shows Bitcoin’s growing utility beyond being just a store of value.

Ethereum Staking Boom

Over 50% of Ethereum’s supply will be staked, showing confidence in its long-term value. Staking will also strengthen the network’s security.

ETH/BTC Ratio Fluctuation

Ethereum’s value compared to Bitcoin will drop below $0.03 but recover to over $0.06 by year-end. This reflects shifting investor sentiment throughout the year.

Layer 2 Dominance

Layer 2 networks will generate more activity than alternative Layer 1 blockchains. They will offer faster and cheaper transactions, attracting more users.

DeFi Dividend Era

Decentralized applications will distribute at least $1 billion in rewards to users. This marks a shift toward sharing profits with participants.

On-Chain Governance Revival

DeFi projects will experiment with new governance models to involve users in decision-making. This will make the ecosystem more decentralized and innovative.

Custodian Banks Enter Crypto

The world’s four largest custodian banks will start offering crypto services. This will bridge the gap between traditional finance and digital assets.

New Stablecoins

At least ten new stablecoins will launch, backed by traditional finance partners. These stablecoins will bring more liquidity and trust to the market.

Stablecoin Supply Surge

The total supply of stablecoins will double to over $400 billion. This reflects the growing demand for stable, blockchain-based assets.

Tether’s Market Share Decline

Tether’s dominance will drop below 50%, facing competition from alternatives like USDC and new offerings like BlackRock’s BUIDL.

Crypto Venture Capital Boom

Venture capital investment in crypto will exceed $150 billion, growing by over 50% year-over-year. This influx will fuel innovation across the industry.

Stablecoin Legislation

The U.S. Congress will pass laws regulating stablecoins, signed by President Trump in 2025. However, broader crypto market regulations will remain unresolved.

U.S. Bitcoin Reserves

The U.S. government won’t buy more Bitcoin but will use its existing holdings to build reserves. Agencies will explore policies for managing Bitcoin reserves.

SEC Investigates Prometheum

The SEC will investigate Prometheum, a special-purpose broker-dealer. This could set a precedent for how crypto platforms are regulated.

Dogecoin Hits $1

Dogecoin will finally reach $1, with its market cap soaring to $100 billion. This will make the memecoin a major player in the crypto world.

The year-ending predictions are setting a bullish tone for the year 2025, though the market is also cautious about a potential market crash after Trump officially takes charge till then it’s all speculative.

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