Galaxy Digital Outlook: Bitcoin’s Path Toward $250,000 by 2027

The Bitcoin Price Blueprint: Institutional Perspectives

(Source: intangiblecoins)

On December 21, Alex Thorn, Head of Research at Galaxy Digital, outlined his outlook on Bitcoin’s medium- and long-term trajectory. He expects a turbulent path for Bitcoin prices in 2026, with no clear short-term trend. Over a longer time frame, however, he sees potential for Bitcoin to reach $250,000 by the end of 2027. This isn’t a single-point price forecast, but rather an observation of shifting asset positioning as market structures evolve.

Options Market Signals Deep Division

From the derivatives market perspective, expectations for Bitcoin’s medium- and short-term performance are sharply divided. Options pricing suggests that, by mid-2026, the probabilities of Bitcoin falling to $70,000 or rallying to $130,000 are almost equal. By year-end 2026, the odds of a drop to $50,000 or a surge to $250,000 remain evenly split. This broad range highlights the market’s significant uncertainty about Bitcoin’s future direction.

Short-Term Pressures in a Bear Market

As of this analysis, the crypto market remains in a bearish phase, and Bitcoin has yet to reclaim a definitive uptrend. Downside risks persist until Bitcoin breaks convincingly above the $100,000 to $105,000 resistance zone. Meanwhile, macroeconomic uncertainties are mounting, including the pace of AI capital expenditures, shifts in monetary policy, and policy ambiguity from the U.S. midterm elections.

Long-Term Narrative Continues to Strengthen

Even if Bitcoin retraces or approaches its 200-week moving average in the near term, Galaxy’s core thesis remains intact: Bitcoin’s institutionalization and adoption among professional investors are still accelerating. While 2026 may not see an explosive bull market, the long-term structural bullish case remains unbroken, whether Bitcoin ends up in the $70,000 or $150,000 range.

BTC’s Shift Toward a Hedging Asset

As institutional access barriers fall and demand for non-dollar hedges rises, Bitcoin is increasingly in sync with an accommodative monetary environment. Over the next two years, Bitcoin could move further toward gold-like status, becoming a mainstream component in capital allocation strategies instead of being viewed solely as a high-volatility speculative asset.

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Conclusion

Galaxy Digital’s analysis isn’t about setting a single price target. It’s grounded in the ongoing transformation of market structure and institutionalization. While short-term volatility and uncertainty are unavoidable, the central question is whether Bitcoin can continue to attract institutional capital and solidify its role as a store of value and hedging asset. Price is just an outcome; institutionalization is the true engine of long-term growth.