Galaxy Lowers Bitcoin End-of-Year Price Target from $185,000 to $120,000
Institutional crypto firm Galaxy has revised its end-of-year price target for Bitcoin, lowering it from $185,000 to $120,000. This adjustment comes in the wake of Bitcoin (BTC) falling below the $100,000 mark for the first time in six months.
In a note to its clients on Wednesday, Galaxy attributed this change to recent market developments, including a significant drop in BTC’s price and a $2 billion wave of liquidations that swept through the market on Tuesday. According to the firm, Bitcoin is now entering what it terms the “maturity era,” characterized by reduced volatility and increased stability.
### Bitcoin’s “Maturity Era” and Market Implications
Galaxy explains that during this new phase, market dynamics will be dominated by institutional absorption, passive investment flows, and lower volatility levels. As a result, the firm anticipates that Bitcoin’s gains will be more gradual moving forward, with prices expected to approach—but not exceed—previous all-time highs by the end of the year.
Recently, Bitcoin has been trading around $103,923, marking a 3% increase following Tuesday’s market upheaval. However, this price still represents an approximate 18% decline from its all-time high of $126,080 set just last month, according to data from CoinGecko.
### Shifting Market Dynamics
Galaxy’s analysis highlights several factors working against Bitcoin’s favor in the current market:
– The record $19 billion liquidation cascade on October 10, triggered partially by President Trump’s threats of massive tariffs on China, has shaken investor confidence and reduced market liquidity.
– Alternative assets, such as gold and AI-focused stocks, have started to compete more aggressively with Bitcoin for investors’ attention.
– The growing popularity of stablecoins has also diverted interest away from Bitcoin within the crypto space.
### Policy Developments and Investor Sentiment
On the policy front, expectations for a Bitcoin strategic reserve were high when President Trump took office in January. While an executive order was signed to establish such a reserve, there have been no subsequent Bitcoin purchases, and government communication on the initiative has been minimal, Galaxy noted.
Additionally, retail investor enthusiasm for crypto has waned significantly since 2021. Galaxy describes retail buyers as largely “apathetic” toward Bitcoin, with the previous year’s meme coin surge providing only a temporary boost in attention that has yet to translate into sustained confidence in Bitcoin.
### Future Outlook for Bitcoin Treasury Companies
Galaxy also predicts changes for companies holding Bitcoin on their balance sheets. Whereas stock prices for these firms previously rose in tandem with Bitcoin’s price, the cooling momentum means that generating revenue through other means will become necessary.
### Market Predictions
According to predictors on Myriad—a platform developed by Decrypt’s parent company, Dastan—there is a 64% likelihood that Bitcoin will reach $115,000 before it drops to $85,000.
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As Bitcoin transitions into this new phase of maturity, investors and market observers will be closely watching how these evolving dynamics shape the outlook for the world’s leading cryptocurrency.
https://decrypt.co/347449/galaxy-slashes-bitcoin-price-target-2025-btc-enters-maturity-era