Galaxy Digital Lowers Bitcoin Price Forecast to $120K
Galaxy Digital’s research team, led by Alex Thorn, has cut its 2025 Bitcoin price forecast from $185,000 to $120,000. The revised Bitcoin price forecast follows a sharp correction below $100,000 driven by ETF outflows, heavy whale selling, more than $1.3 billion in leveraged liquidations, and a major October 10 leverage unwind that drained market liquidity. Roughly 470,000 BTC shifted from long-term wallets to institutions, tightening supply and creating resistance at key levels.
Additional headwinds include capital rotation into AI stocks and gold—both outperforming Bitcoin year-to-date—stablecoin growth, underperformance of Bitcoin treasury firms, and waning retail interest. Traders are advised to watch for liquidity events, policy updates, and institutional flows. While analysts caution that holding the $100,000 support level is vital to maintaining the multi-year bull run, they note that Bitcoin’s maturation, network security, and rising institutional adoption support a long-term bullish outlook despite a slower rally pace.
Bearish
Galaxy Digital’s reduction of Bitcoin’s 2025 price forecast to $120,000 highlights multiple bearish drivers that can weigh on BTC’s short-term price performance. Large ETF outflows, significant whale selling and over $1.3 billion in leveraged liquidations have drained liquidity, while 470,000 BTC moved to institutional wallets creating supply resistance. Capital rotation into AI stocks, gold, stablecoin growth and weakening retail interest further divert funds away from Bitcoin. Although long-term network security and rising institutional adoption support a bullish outlook, the lowered forecast and prevailing market headwinds point to a bearish bias in the near term, suggesting traders prepare for potential volatility around the $100,000 support level.