Galaxy Digital Cuts Bitcoin Year-End Target to $120K
Galaxy Digital has lowered its Bitcoin year-end price target for 2025 from $185,000 to $120,000. The firm cites a maturing market with institutional investors absorbing supply through passive ETF flows. Key triggers include the October 10 flash crash, which led to $20 billion in liquidations after a 400,000 BTC whale sell-off, and five straight days of outflows from U.S. Bitcoin and Ethereum spot ETFs totaling over $1 billion. On-chain data show declining spot demand. Competition from gold, AI infrastructure stocks, and stablecoin narratives has also diverted capital from Bitcoin.
Despite an 18% correction from October’s all-time high of $126,080 and bearish forecasts as low as $72,000, Galaxy maintains Bitcoin’s market structure remains intact. Traders should expect short-term price pressure but may see a recovery later in the year if ETF inflows and institutional demand persist.
Bearish
Galaxy Digital’s decision to lower its Bitcoin target reflects reduced retail interest, significant liquidations, and rotation into other assets, likely adding short-term selling pressure. The record $20 billion forced selling event and ETF outflows signal weakening momentum, prompting traders to anticipate further downside. However, sustained institutional ETF inflows and a robust market structure support a potential mid-to-long-term recovery, keeping the overall outlook balanced despite near-term bearish risks.