Bitcoin (BTC), which is marking its 16th anniversary since the mining of its initial block, is poised to hit new peaks in 2025, according to a new report by Galaxy Digital.
Throughout its existence, Bitcoin has appreciated faster than all other asset classes, particularly the S&P 500 and gold, and that trend will continue in 2025. Bitcoin is also predicted to reach 20% of Gold’s market cap.
Galaxy projects that 5 Nasdaq-100 companies and 5 nation-states will announce the inclusion of Bitcoin in their balance sheets or sovereign wealth funds in 2025, with competition among these nations driving the next wave of adoption.
Incoming American President, Donald Trump, has pledged to establish a Bitcoin Reserve. The Swiss National Bank of Switzerland is also considering adding bitcoin to its reserves alongside gold.
Other countries exploring holding Bitcoin as a strategic asset include:
- Germany
- Hong Kong
- Russia
- Brazil
- Poland
Galaxy also predicted that total assets under management (AUM) for U.S. spot Bitcoin exchange-traded funds (ETFs) launched in January 2024 will exceed $250 billion by 2025.
🇺🇸 MILESTONE | ‘We Do not Approve Nor Endorse Bitcoin,’ Says United States SEC as it Approves 11 Spot #Bitcoin ETFs
This development represents a historic milestone in the integration of Bitcoin into traditional financial markets.
Below are the 11 approved products.… pic.twitter.com/Zn41cG9Ji0
— BitKE (@BitcoinKE) January 11, 2024
Additionally, at least one major wealth management platform is expected to announce a Bitcoin allocation of 2% or more in 2025.
Bitcoin DeFi, recognized as the total amount of BTC locked in DeFi smart contracts and deposited in staking protocols, will almost double in 2025, from its current level of $11 billion, Galaxy said.
Moreover, the trend of Bitcoin miners transitioning to high-performance computing (HPC) is expected to continue, with over half of the 20 largest publicly listed Bitcoin mining companies projected to announce partnerships with artificial intelligence (AI) firms or hyperscalers by 2025.
Additionally, the report forecasts that Bitcoin will achieve 20% of gold’s market capitalization in 2025.
Meanwhile, Ether (ETH), the second-largest crypto, is also projected to rise in the next 12 months.
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