Galaxy Digital Forecasts Bitcoin to Hit $250000 by End of 2027

TLDR

• Galaxy Digital predicts Bitcoin could hit $250,000 by 2027 driven by institutional adoption.
• Bitcoin’s price forecast for 2025 may fall short as market conditions remain uncertain.
• 2026 outlook for Bitcoin remains unclear due to political and macroeconomic factors.
• Bitcoin’s volatility is decreasing, as new yield strategies influence its market behavior.

Alex Thorn, the Head of Firmwide Research at Galaxy Digital, has issued a bold long-term forecast for Bitcoin (BTC), predicting that the cryptocurrency could reach $250,000 by the end of 2027. This forecast highlights the potential for Bitcoin’s maturation and growing institutional adoption, which Thorn believes will continue to accelerate over the next few years.

Thorn points to the increasing institutional access to Bitcoin, combined with an easing of monetary policy and rising demand for assets that serve as a hedge against dollar debasement. Bitcoin’s role as a store of value, similar to gold, could strengthen in the years ahead, according to Thorn’s outlook.

Uncertainty in the 2026 Bitcoin Outlook

While the 2027 forecast is optimistic, Thorn has expressed caution regarding Bitcoin’s outlook for 2026. He described the year as “too chaotic to predict” due to macroeconomic ambiguity and political developments. Thorn noted that Bitcoin’s price might fluctuate dramatically next year, but he refrained from offering any definitive predictions.

As of now, Bitcoin is trading near $89,000, which is a significant drop from its October peak. According to Thorn, Bitcoin has failed to regain strong bullish momentum in the near term. This uncertainty is evident in the options market, where there is an equal probability of Bitcoin reaching either $70,000 or $130,000 by mid-2026, reflecting a lack of clear consensus on the direction of the market.

In Thorn’s view, Bitcoin must re-establish itself above the $100,000 to $105,000 range to reduce downside risks in the short term. Until this level is regained, Thorn remains cautious about the immediate future for Bitcoin.

Galaxy Digital Revises 2025 Bitcoin Target

Thorn’s revised Bitcoin price target for the end of 2025 has also been adjusted due to current market conditions. Galaxy Digital had initially set a target of $185,000, but this was recently downgraded to $120,000. Thorn attributes this adjustment to factors such as capital rotation into AI stocks and gold, reduced retail participation, and a shift in market behavior toward stablecoins.

Currently, Bitcoin is trading within the range of $80,000 to $90,000, making it unlikely to meet the revised 2025 target of $125,000, according to Thorn. He also pointed to the broader bear market in the cryptocurrency space, which has resulted in Bitcoin experiencing a 21.5% decline in the fourth quarter of 2025. Despite these short-term challenges, Thorn remains confident in Bitcoin’s long-term growth.

Bitcoin’s Decreasing Volatility and Institutional Growth

Despite the near-term uncertainty, Thorn highlighted an important shift in Bitcoin’s market profile. The cryptocurrency’s volatility has been trending lower, which he attributes to the growing availability of Bitcoin yield strategies and option overwriting. Thorn also mentioned that Bitcoin is starting to exhibit characteristics similar to more traditional macro assets.

He explained that the current market conditions have caused puts (options contracts giving the right to sell Bitcoin) to become more expensive than calls (contracts allowing the right to buy Bitcoin). This shift indicates that Bitcoin is evolving into a more mature asset with decreasing volatility.

Thorn’s comments underline the changing dynamics in the Bitcoin market as institutional investors continue to engage with the asset. As Bitcoin’s role as a store of value grows, its volatility may decrease further, helping it to become a more stable and widely accepted financial instrument.

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