Galaxy Research has released a forecast for the cryptocurrency market in 2025. The report highlights the potential for Bitcoin to reach a new all-time high and the continued expansion of the stablecoin market.
Other industry insights also foreshadow the dynamism of the coming year. Nationwide Bitcoin adoption and a decline in Tether's dominance in the stablecoin sector are expected.
Bitcoin, Ethereum Reach New Records
Galaxy Research predicts that Bitcoin will set a new all-time high in 2025. The company expects major cryptocurrencies to break through $150,000 at the start of the year and reach $185,000 by the fourth quarter.
This surge will be driven by increased adoption by major companies and countries. The report forecasts that 5 of the Nasdaq 100 companies and 5 countries will add Bitcoin as an asset, driven by strategic diversification and the need for trade settlement.
"In particular, competition between non-aligned countries, countries with large sovereign wealth funds, or countries hostile to the US will lead them to adopt strategies to mine or acquire Bitcoin." - Galaxy Research
Bitcoin is also expected to receive more attention in the investment market. A US-based spot Bitcoin ETF could manage over $250 billion in assets and strengthen BTC's role as an alternative asset. By 2025, Bitcoin's market capitalization could rival 20% of gold's value, solidifying its position as a premier investment asset.
The second-largest cryptocurrency, Ethereum, is also expected to see substantial growth. The report estimates that Ethereum could trade at $5,500 in 2025, with DeFi and Staking as key growth drivers. Regulatory improvements will create favorable conditions, driving Ethereum staking participation above 50% and increasing network activity.
The company also predicts that Dogecoin will reach $1 and achieve a $100 billion market capitalization, thanks to continued community support and utility expansion.
Stablecoin Market, Further Developments
Galaxy Research anticipates dynamic changes in the stablecoin sector. The report expects total stablecoin supply to exceed $400 billion by 2025, with at least 10 new stablecoin projects entering the market, supported by traditional finance partnerships. These developments will expand the use of stablecoins for payments, remittances, and settlement.
"As regulatory clarity increases for existing stablecoin issuers and traditional banks, trusts, and deposit institutions, stablecoin supply will explode in 2025." - Galaxy
However, Tether's dominance is expected to fall below 50%, as new entrants offer yield-generating alternatives. Competitors may share reserve earnings to attract users, and Tether will need to adjust its strategy. The company suggests that Tether could introduce a delta-neutral stablecoin to maintain competitiveness.
USDC is likely to gain additional momentum through reward programs integrated with major platforms like Coinbase. This strategy can significantly improve user adoption and strengthen the DeFi ecosystem, reflecting the increasing convergence of cryptocurrencies and traditional financial services.
Policies, Market Structure in Focus
On the regulatory front, the US government is unlikely to directly purchase Bitcoin but may adjust its existing holdings. Discussions around a Bitcoin reserve policy may occur, but significant immediate changes are not expected.
"There will be movements within departments and agencies to review expanded Bitcoin reserve policies." - Galaxy
Galaxy Research also predicts that a bipartisan bill establishing stablecoin regulations will be enacted in the US. This measure could create a framework for greater oversight and encourage widespread adoption of dollar-based digital currencies.
The company added that while progress may be made on stablecoin clarity, some uncertainty will remain due to the delayed comprehensive regulatory reform of the broader cryptocurrency market.
