Galaxy Digital Turns Cautious, Slashes BTC Projection to $120,000 for 2025, Citing Weak Market Momentum

Crypto investment firm Galaxy Digital has reportedly revised its for 2025, cutting its target from $180,000 to $120,000, as trading sentiment and institutional demand show signs of fatigue following a challenging third quarter. The move marks a notable change of trajectory in tone from one of the most bullish institutional players in digital assets, reflecting growing caution across the broader crypto market.

The revised forecast comes amid what Galaxy describes as a “temporary cooling” in capital inflows and liquidity. While the firm remains optimistic about BTC’s long-term role as a macro hedge, its analysts cited fragileer derivatives data, reduced inflows of , and flattening retail activity as the current challenges limiting BTC price acceleration in the last months of 2025.

Galaxy Digital Comes Back to Earth later than Optimistic BTC Prediction

According to reports, analysts cutting down on their initial BTC price prediction is a result of the revised outlook on macroeconomic trends and blockchain activities. The firm observed that BTC’s on-chain transaction volumes and active address counts have declined from their mid-year highs, suggesting that speculative interest is waning.

As such, Galaxy’s new forecast projects that BTC will trade within a $70,000–$120,000 range through 2025, supported by continued adoption but restrained by macro uncertainty. The firm also noted a growing contradiction between ETF inflow optimism and the actual capital entering the market. This implies that some institutional players may be readjusting their BTC investment plans. 

Market Sentiment Shifts as Institutional Flows Stall

BTC’s price trajectory has faced headwinds in recent months as investors reassess risk exposure across asset classes. state that Galaxy Digital’s analysts attributed much of the sluggishdown to the Federal Reserve’s cautious monetary stance. 

The that there would be no further interest rate reductions this year, resulting in a fragileer appetite for speculative assets in global markets. Also, the absence of strong macro factors, such as inflation hedging or liquidity expansion, has left BTC trading largely on technical strength rather than conviction-driven accumulation.

Meanwhile, ETH and other altcoins have failed to mount a convincing rally, further signaling a period of risk aversion across digital assets. Despite its tempered near-term view, Galaxy Digital reiterated its long-term confidence in BTC’s growth. The firm emphasized that halving effects, supply scarcity, and expanding corporate adoption remain core bullish drivers over the multi-year horizon.

However, Galaxy Digital’s recalibration shows the broader trend of reduced optimism among institutional BTC investors. Rather than a bearish pivot, analysts interpret the move as evidence of a more data-driven, disciplined approach to crypto asset valuation.

As 2025 comes to an end, may hinge less on speculative demand and more on its ability to integrate into traditional capital markets. For Galaxy Digital, that integration remains inevitable, but perhaps sluggisher and more methodical than initially projected.