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2025 will be one of the most important years. Here's why (analysis)

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by COINS NEWS 41 Views

2025 will be one of the most important years. Here's why (analysis)

Happy new year bitcoiners! 2025 will be a monumental year for Bitcoin. Galaxy Digital has made some bold predictions and I decided to make this thread to dive into each one and see what magic internet money has in store for us.

Bitcoin’s Path to $185K

Bitcoin is set to cross $150K in H1 2025 and test $185K by Q4. Institutional, corporate, and nation-state adoption will drive this growth, reinforcing Bitcoin’s historical outperformance against gold, equities, and other asset classes.

BTC Correlations

Bitcoin ETPs to Overtake Gold

The total AUM of U.S. spot Bitcoin ETPs will surpass $250B in 2025, bringing them within striking distance of overtaking U.S. gold ETPs. Major institutional investors, including hedge funds and public entities, continue to drive record inflows.

Spot Bitcoin ETFs AUM

Bitcoin as a Top Risk-Adjusted Asset

Bitcoin will rank among the top-performing global assets on a risk-adjusted basis in 2025. Its strong Sharpe ratio underscores its appeal, rivaling equities like MicroStrategy. This performance highlights Bitcoin’s value as a diversified portfolio component.

Bitcoin Sharpe Ratio

Broader Bitcoin Adoption

At least five Nasdaq 100 companies and five nation-states will add Bitcoin to their balance sheets or sovereign wealth funds in 2025. Strategic diversification, trade settlement, and geopolitical competition will drive this trend, signaling broader global adoption.

Bitcoin Treasuries

Bitcoin DeFi to Double in 2025

Bitcoin DeFi will almost double in 2025, driven by a 30% rise in WBTC, 150% rise in cbBTC supply, and new layer 2 solutions. By leveraging Bitcoin’s scalability and security, DeFi adoption will expand across multiple chains and protocols.

WBTC Balance

Bitcoin Miners to Diversify Operations

More than half of the top 20 publicly traded Bitcoin miners will diversify into AI and high-performance computing partnerships. This shift will moderate YoY hashrate growth, which will reach 1.1 zetahash by the end of 2025.

Bitcoin Hashrate

Trump Administration

The new Trump administration will play a pivotal role in fostering Bitcoin adoption by prioritizing deregulation, fostering innovation, and encouraging investment in digital assets. Pro-Bitcoin policies will attract institutional capital and drive broader adoption across the U.S. financial system. Bitcoin strategic reserve anyone?

Trump at the Bitcoin 2024 conference in Nashville

Predictions came from the original Galaxy research article, and all charts can be found on Newhedge

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