Galaxy Research has revealed its forecast for the cryptocurrency market in 2025. The report highlights key trends, including the potential for Bitcoin to reach a new all-time high and the continued expansion of the stablecoin market.
Other industry outlooks also point to a dynamic year ahead, with expected nation-state adoption of Bitcoin and Tether’s dominance in the stablecoin sector expected to wane.
Bitcoin and Ethereum to reach new highs
Galaxy Research predicts that Bitcoin will reach new all-time highs in 2025. The company expects the leading cryptocurrency to surpass $150,000 in the first half of the year and climb to $185,000 in the fourth quarter.
This push will be fueled by increasing adoption by large companies and nations. The report predicts that five Nasdaq 100 companies and five countries will add Bitcoin to their balance sheets, based on strategic diversification and trade settlement needs.
“Competition among nation states, particularly non-aligned countries, those with large sovereign wealth funds, or even those opposed to the United States, will lead to the adoption of strategies to exploit or otherwise acquire Bitcoin,” Galaxy Research said.
Bitcoin is also expected to gain traction in investment markets. US-based spot Bitcoin ETFs could collectively manage more than $250 billion in assets, solidifying BTC’s role as a leading alternative asset. By 2025, its market capitalization could rival 20% of the valuation of gold, strengthening its position as the best performing investment.
Ethereum, the second largest cryptocurrency, is also poised for substantial growth. The report estimates that Ethereum could trade at $5,500 in 2025, with DeFi and staking acting as the main growth drivers. Regulatory improvements are likely to create favorable conditions, pushing Ethereum’s stake above 50% and boosting its network activity.
The company also predicts that Dogecoin will achieve a major milestone, reaching $1 and a market cap of $100 billion, thanks to sustained community support and expanding utilities.
The Stablecoin market will evolve further
Galaxy Research predicts a dynamic change in the stablecoin sector. The report expects the total stablecoin supply to exceed $400 billion by 2025, with at least ten new stablecoin projects backed by traditional financial partnerships entering the market. These developments will expand the use of stablecoins for payments, remittances and settlements.
“Increasing regulatory clarity for existing stablecoin issuers and traditional banks, trusts and custodians will lead to an explosion in stablecoin supply in 2025,” Galaxy said.
However, Tether’s dominance is expected to fall below 50% as new entrants offer yield-generating alternatives. Competitors can attract users by sharing revenue from reserve yields, forcing Tether to adjust its strategy. The company suggests that Tether could introduce a delta-neutral stablecoin to remain competitive.
USDC is likely to gain momentum, supported by rewards programs integrated into leading platforms like Coinbase. This strategy could significantly improve user adoption and boost the DeFi ecosystem, demonstrating the growing convergence of crypto and traditional financial services.
Focus on policy and market structure
Regulatorily, the US government is unlikely to purchase Bitcoin directly, but it could consolidate its existing holdings. There is potential for discussions around a Bitcoin reserve policy, although meaningful steps may not come to fruition immediately.
“There will be some movement within departments and agencies to consider an expanded Bitcoin reserve policy,” the company said.
Galaxy Research also predicts bipartisan legislation establishing stable coin regulations in the United States. The move could create a framework for greater oversight and encourage broader adoption of dollar-backed digital currencies.
The company added that while stablecoin clarity may progress, delays in overall regulatory reforms for the broader crypto market would leave some uncertainty in the space.
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