Galaxy, the institutional crypto-asset firm, has adjusted its outlook for the year’s end. It announced to its clients this Wednesday a cut in its Bitcoin price target 2025. The target is reduced from $185,000 to $120,000. This move follows a drop in BTC below $100,000, for the first time in six months.
The firm attributes this adjustment to a new phase in the market. Alex Thorn, head of research at Galaxy, called it Bitcoin’s “maturity era.” This stage will be characterized by lower volatility and the dominance of institutional absorption. Passive capital flows will also be influential. Therefore, Galaxy projects that future gains will arrive at a slower pace. Bitcoin would only approach its previous all-time highs toward the end of the year.
Several factors have shifted the market dynamics against Bitcoin. Investor confidence was impacted following the $19 billion liquidation cascade on October 10. Furthermore, other assets have begun to challenge Bitcoin’s attractiveness. Investments like gold and AI-related stocks are gaining ground. Likewise, stablecoins have captured much of the attention within the crypto space.
Has Bitcoin lost its exclusive dominance in investment portfolios?
On the other hand, retail enthusiasm seems to have cooled. Galaxy describes retail buyers as “apathetic” toward Bitcoin since 2021. Last year’s memecoin mania did not translate into a sustained belief in the main asset. On the political front, the anticipated U.S. government Bitcoin strategic reserve has not progressed. No BTC purchases have been reported following the executive order, creating silence in the sector.
These changes will also affect companies that hold Bitcoin in their treasuries. Previously, the stocks of these firms used to rise along with the BTC price. However, with more moderate price momentum, these firms will need to find new ways to generate revenue and value. Simply holding Bitcoin may not be enough to justify their valuations. The market now expects a second phase of strategy for these entities.
Despite the short-term reduction in the Bitcoin price target 2025, Galaxy’s overall sentiment remains positive. Alex Thorn reiterated in his communications that he maintains a bullish stance on Bitcoin’s long-term future. The “maturity era” simply suggests that the path to new all-time highs may be longer and less volatile than previously anticipated. The market is adjusting to a new institutional reality.
