On December 23, 2025, Alex Thorne, head of research at Galaxy Digital, expresses long-term optimism about Bitcoin despite current challenges, expecting its price to reach $250,000 by the end of 2027.
#### Key Prediction: $250,000 by the end of 2027
Thorne states in his remarks that "Bitcoin will reach $250,000 by the end of 2027," noting that increased institutional access to the currency, along with easing monetary policies and the search for alternative assets to the dollar as a hedge against inflation, could drive Bitcoin to follow gold as a store of value against currency devaluation. Thorne says, "It is very likely that Bitcoin will follow gold to become a widely accepted asset as a hedge against currency devaluation over the next two years."
#### Timeline and chaotic period in 2026
Thorn describes 2026 as "too chaotic to predict accurately," although he does not rule out the possibility of Bitcoin reaching new all-time highs during it. According to options markets, there is an equal chance of Bitcoin reaching $70,000 or $130,000 by the end of June 2026, and $50,000 or $250,000 by the end of the year.
As for the short term, Thorn warns of downside risks until Bitcoin re-establishes itself above the 100-105 thousand dollar levels, stating: "Until Bitcoin firmly re-establishes itself above 100-105 thousand dollars, we see that short-term risks lean towards the downside."
#### Reasons for the anticipated chaos
Thorn attributes this chaos to several factors, including:
- The broader cryptocurrency market has already entered a bearish phase, with Bitcoin failing to regain strong upward momentum.
- Uncertainty in the broader financial markets, such as the speed of AI spending rollout, monetary policy conditions, and the U.S. midterm elections in November.
- Structural decline in long-term Bitcoin volatility, as put options have become more expensive than call options, a shift resembling traditional assets.
#### Current state of Bitcoin
At the time of writing the report, Bitcoin is trading around $88,000, down from its previous highs for the year, reflecting a consolidation phase and waiting for new catalysts.
#### Long-term outlook is positive
Despite short-term warnings, Thorn emphasizes that Bitcoin's maturity and institutional adoption continue to increase: "This maturity is likely to persist, and whether Bitcoin drops further towards the 200-week moving average or not, the adoption of the asset class as a whole and institutional adoption is only increasing."
In conclusion, Galaxy Digital's forecast provides a balanced view that combines short-term caution with long-term optimism, as it sees Bitcoin as a mature asset that could benefit from global economic conditions to achieve significant growth by 2027, despite the anticipated volatility in 2026. Investors continue to monitor how the market reacts to these factors in the coming months.
