Following Bitcoin’s Recent Decline, Investment Firm Galaxy Digital Revises Its Year-End Price Forecast
Galaxy Digital has reduced its year-end 2025 Bitcoin price target from $185,000 to $120,000 following BTC's drop below $100,000. Researchers cite factors like institutional capital flows, heavy whale selling, ETF-driven absorption, and declining retail interest. Bitcoin's long-term structure remains stable, but market fragility, large investor outflows, and high leveraged position liquidations create challenges. Approximately 470,000 BTC have shifted from long-term wallets to institutions, signifying supply 'institutionalization.' Additionally, investments in AI and gold are limiting Bitcoin's growth as investor focus shifts. Despite these, maintaining the $100,000 level is seen as critical to preserving the bull market momentum.
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Bitcoin's Price Target Lowered by Galaxy Digital
Bitcoin's price drop below $100,000 this week prompted Galaxy Digital to revise its year-end 2025 price target from $185,000 to $120,000. According to the company’s researchers, Bitcoin has entered its “maturity period,” which is marked by lower volatility and the increased influence of institutional capital flows.
Long-Term Bitcoin Outlook
Alex Thorn, Head of Research at Galaxy Digital, stated that Bitcoin’s long-term structure remains “solid.” However, the market in 2025 is expected to be shaped by factors such as “heavy whale selling,” ETF-driven absorption, and declining interest from retail investors. Thorn noted, “If Bitcoin can maintain the $100,000 level, the nearly three-year-long bull market remains structurally intact, but the pace of the rise may slow.”
Sharp Market Correction and Liquidations
Galaxy's forecast revision follows one of the sharpest corrections this year. Bitcoin's price plunged from approximately $107,000 to below $99,000, causing the liquidation of more than $1.3 billion in leveraged positions. Analysts attribute this fragility to ETF outflows, poor liquidity, and selling by long-term investors.
Institutionalization of Bitcoin
Galaxy Digital highlighted that around 470,000 Bitcoin (worth approximately $50 billion) moved from long-term wallets to institutional investors. This shift symbolizes the growing institutionalization of Bitcoin’s supply, though it has also created resistance at key price levels.
Competing Investment Trends
The report also indicated that capital flows into artificial intelligence investments and gold are limiting Bitcoin’s performance. Investments in AI infrastructure and increased demand for data centers are drawing investors, while geopolitical risks are driving renewed interest in gold as a safe-haven asset.
Investor Sentiment in 2025
Thorn commented, “Investor interest is limited in an environment of abundant liquidity.” He emphasized that 2025 has been a significant investment year for AI and the so-called ‘Magnificent Seven’ stocks, rather than Bitcoin. This report is not intended as investment advice.