Bitcoin (BTC)’s drop below $100,000 this week led Galaxy Digital to lower its year-end 2025 price target from $185,000 to $120,000.
According to the company’s researchers, BTC has now entered its “maturity period,” a period defined by lower volatility and the dominance of institutional capital flows.
Alex Thorn, Head of Research at Galaxy Digital, stated that Bitcoin’s long-term structure is “still solid,” while 2025 is shaped by “heavy whale selling, ETF-driven absorption, and declining retail investor interest.”
“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,” he said.
Galaxy’s forecast revision comes after one of the sharpest corrections of the year. Bitcoin’s price fell from around $107,000 yesterday to below $99,000, while more than $1.3 billion in leveraged positions were liquidated. Analysts say ETF outflows, poor liquidity, and long-term investor selling have left the market “fragile.”
Galaxy noted that approximately 470,000 Bitcoin (worth around $50 billion) had moved from long-term wallets to institutional investors, arguing that this signified the “institutionalization” of Bitcoin’s supply but also created resistance at key levels.
The report also noted that capital flows into artificial intelligence investments and gold are limiting Bitcoin’s performance. Investments in AI infrastructure and increased data center demand are attracting investors, while geopolitical risks have revived demand for gold as a safe haven.
“Investor interest is limited in an environment of abundant liquidity; 2025 has been a hot investment year for AI and ‘Magnificent Seven’ stocks, not Bitcoin,” Thorn said.
*This is not investment advice.
Source: https://en.bitcoinsistemi.com/following-bitcoins-recent-decline-investment-firm-galaxy-digital-revises-its-year-end-price-forecast/
