🪙Bitcoin has lost the status of the most popular investment of 2025, but interest in the first cryptocurrency will inevitably return. This was stated by the head of research at Galaxy Digital, Alex Thorn, emphasizing that digital gold is entering a new phase of maturity, and this, in his words, always works in favor of the asset’s long-term stability.
Thorn recalled that at the beginning of the year, especially after Donald Trump’s victory in the U.S. presidential election, bitcoin became “the hottest trade of the year.” It was political factors, strengthened institutional interest, and the inflow of capital into cryptocurrency ETFs that pushed demand to extreme levels. But, as the expert noted, any overheated phase inevitably turns into cooling — this is a natural cycle of market development.
Now investor attention has shifted to other areas that offer rapid growth and scalability: artificial intelligence and the computing power associated with it, next-generation nuclear energy, quantum technologies, as well as gold, which has experienced its own rally. According to Thorn, the market simply received many competing opportunities for profit, and part of the capital that previously sought refuge in cryptocurrencies temporarily moved there.
Thorn emphasizes that the current period of redistribution of positions between “old” and “new” bitcoin holders is making the market healthier. According to him, the increasing spread of BTC ownership among diverse groups of investors enhances the resilience of the ecosystem and reduces dependence on a few large players.
Nevertheless, Galaxy Digital has significantly adjusted its annual price target for bitcoin: the forecast for the end of the year has been lowered from 185,000 to 120,000 dollars. Even reaching the updated target implies growth of about 17% from the current market price of 102,080 dollars.
Over the past 30 days, bitcoin has fallen in price by almost 16%, which has become one of the most notable pullbacks of the year. At the same time, many of the sectors now distracting investors from bitcoin — particularly gold — traditionally serve as assets used for comparison with BTC, creating additional competition for the status of a safe-haven instrument.
However, analysts at JPMorgan see an unexpected advantage for the cryptocurrency in this competition. In a recent report they noted that the sharp volatility of gold during its surge to historic highs in October made the metal a riskier asset. Against this backdrop, bitcoin began to look more attractive to institutional investors.
According to the bank, the ratio of BTC volatility to gold decreased to 1.8. This means that bitcoin remains a riskier instrument, but the gap in the level of risk between it and gold has significantly narrowed — which, according to JPMorgan, may contribute to further growth of interest in the cryptocurrency as an alternative to traditional defensive assets.
🚀 Experts emphasize that the cooling cycle bitcoin is currently experiencing fully fits within the historical patterns of the market. And the fundamental drivers — institutional adoption, infrastructure development, and growing interest in digital assets within the long-term strategies of states and corporations — continue to support the cryptocurrency.
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