CMC News

Galaxy Drops Bitcoin 2025 Target From $185K to $120K

#Galaxy has cut its 2025 $BTC price forecast to $120,000 from $185,000, citing institutional flows and reduced volatility. Alex Thorn, Galaxy's head of research, said Bitcoin has entered a "maturity era" where passive investment dominates.

Whales dumped 400,000 $BTC onto exchanges in October, according to CryptoQuant data. Thorn wrote on X that investment flows rotated into gold, AI stocks, and #stablecoins, creating headwinds for Bitcoin.

The Oct. 10 flash crash triggered $20 billion in cascading #liquidations within 24 hours. Thorn stated this event materially damaged the bull trend and marked the largest liquidation in crypto history.

#Bitcoin exchange inflows peaked in June and July before totaling over 400,000 $BTC in October. The supply surge contributed to downward price pressure and reduced market liquidity.

Galaxy told clients that if $BTC maintains $100,000, the nearly three-year bull market will remain structurally intact. However, future gains will likely come at a slower pace than previous cycles.

Thorn emphasized he remains bullish on Bitcoin's long-term fundamentals. He noted that cyclical market dynamics have been disrupted by passive flows into exchange-traded funds and #institutional absorption.

The firm's analysis indicates Bitcoin is fundamentally strong but trading patterns will differ as the asset matures. Lower volatility from institutional involvement marks a fundamental shift in how $BTC responds to market pressures.