Galaxy Digital's 2027 Bitcoin Forecast Amid Uncertainty for 2026

Galaxy Digital’s Head of Firmwide Research has projected that Bitcoin (BTC) could reach $250,000 by the end of 2027, representing a 179% increase from current prices.

Key Takeaways

Galaxy Digital forecasts Bitcoin to reach $250,000 by the end of 2027, a substantial increase from current levels.
Alex Thorn emphasizes institutional adoption and economic factors as drivers for Bitcoin's growth.
While optimistic long-term, Thorn refrains from providing a clear price prediction for 2026, citing market chaos.
Bitcoin's current performance is weak, with significant fourth-quarter declines impacting analyst forecasts.
Despite the challenges, experts remain positive about Bitcoin’s long-term potential.

This long-term outlook comes as Bitcoin trades around $89,000, significantly lower than its peak in October. The cryptocurrency is currently experiencing a rocky fourth quarter characterized by notable price fluctuations.

Galaxy Digital Unveils 2027 Bitcoin Projection

In a recent post on X (formerly Twitter), Alex Thorn shared insights on the anticipated growth of Bitcoin, attributing it to its maturation and the increasing adoption by institutional investors. Thorn believes that factors such as expanded institutional access, a more relaxed monetary policy, and a rising demand for assets that can hedge against dollar depreciation will positively impact Bitcoin’s status.

He mentioned that within the next couple of years, Bitcoin might be used similarly to how gold is utilized today — as a common “hedge against monetary debasement.” His post stated, “BTC will hit $250k by year-end 2027.”

Thorn also highlighted significant changes in Bitcoin’s volatility patterns. He noted that long-term volatility has been on a downward trend, which he partially credits to the growth of Bitcoin yield strategies and option overwriting.

“What stands out is that the BTC volatility smile now shows puts priced higher than calls, a shift from six months ago. This signals a move from the volatility patterns typically observed in emerging markets to those more common in established macro assets,” he explained.

While Thorn holds a positive long-term outlook, he refrained from making a specific price prediction for 2026. He did not dismiss the chance of Bitcoin reaching new highs next year but called 2026 “too chaotic to predict.”

Thorn cited various factors contributing to this unpredictability, including macroeconomic uncertainties and political events. He elaborated, “As of now, the broader crypto market is already deep in a bear phase, and Bitcoin hasn’t been able to regain its bullish momentum. Until BTC firmly secures itself above $100-$105k, we see risks leaning towards the downside in the short term. Broader financial market dynamics also introduce uncertainty, such as AI capital expenditure rates, monetary policy, and the U.S. midterm elections in November.”

To demonstrate this uncertainty, Thorn referenced the options market, which currently shows balanced expectations for extreme outcomes. He pointed out that there is a comparable likelihood of Bitcoin trading at either $70,000 or $130,000 by the end of June 2026. By the end of the year, Bitcoin could either dip to $50,000 or surge to $250,000, highlighting the lack of consensus in the near-term outlook.

“2026 might be a dull year for Bitcoin, and whether it ends at $70k or $150k, our bullish perspective for longer timeframes is growing stronger,” Thorn added.

Bitcoin May Not Meet Galaxy Digital’s 2025 Price Goal

This forecast surfaces as Bitcoin is on course to record its weakest fourth-quarter performance since 2018. The cryptocurrency has dropped 21.5% this quarter, with year-to-date losses standing at 4.2%.

As of this writing, Bitcoin was trading at $89,520, reflecting a 0.97% increase over the past 24 hours.

The performance of Bitcoin, the largest cryptocurrency by market cap, has led several analysts to adjust their forecasts downward. Thorn previously revised his 2025 year-end Bitcoin price target from $185,000 to $120,000. He attributed this downward adjustment to several issues, including whale distribution, excessive leverage, capital shifts into AI stocks and gold, the rapid increase of stablecoins, and diminishing retail engagement.

However, Thorn has now cautioned that Bitcoin might fall short of even the revised targets. “In November, we lowered our end-of-year price target to $125k. Currently, BTC is trading within the $80-90k range and seems unlikely to meet our updated end-of-year price goal for 2025,” Thorn indicated.

In summary, although the near-term outlook clouds with uncertainty, it’s evident that the expert retains a bullish long-term view on Bitcoin. As 2026 draws closer, market participants will be keenly observing Bitcoin's price movements.