Galaxy Digital: Bitcoin faces difficult times in 2026

Galaxy Digital: Bitcoin faces difficult times in 2026

Despite difficult times, an analyst from Galaxy Digital predicts a very optimistic Bitcoin price by the end of 2027.

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BTC will hit $250k by year-end 2027. 2026 is too chaotic to predict, although Bitcoin making new all-time highs in 2026 is still possible. Options markets are currently pricing about equal odds of $70k or $130k for month-end June 2026, and equal odds of $50k or $250k by year-end…

– Alex Thorn (@intangiblecoins) December 21, 2025

From the perspective of Alex Thorn of Galaxy Digital, Bitcoin faces particular challenges in 2026. Uncertain market developments, ongoing macroeconomic risks and a changing volatility structure make clear forecasts difficult. At the time of the analysis, the crypto market as a whole is in a significant phase of weakness and Bitcoin has not yet been able to stabilize its previous upward movement. There are also other uncertain factors: monetary policy decisions, the pace of investments in artificial intelligence and the upcoming US midterm elections in November 2026 could additionally influence market movements in the coming months. Despite these factors, Thorn remains optimistic about Bitcoin’s continued development in the long term.

Bitcoin 2025: Strong start, weak end to the year

According to Alex Thorn’s analysis, the year 2025 started promisingly for Bitcoin: new all-time highs, increasing on-chain activity and constantly growing institutional participation provided a boost to the crypto market. But as things progressed, things shifted: reassessments, rotations and adjustments put pressure on the course. A bullish start was followed by a decline to around $90,000 in December 2025. Macroeconomic setbacks, adjustments in investor behavior, liquidations of highly leveraged positions and larger sales by so-called Bitcoin whales had a particularly negative impact.

2026 as a challenging transition year

According to the analysis, the sideways market environment is the starting point for a difficult year 2026. At the same time, this phase could accelerate structural changes in the crypto market. Stablecoins could overtake traditional payment networks, tokenized assets could become more integrated into established capital and collateral markets, and enterprise blockchains could go live. DeFi applications, prediction markets and AI-based payment systems are also likely to continue to gain in importance, the analysis continues.

Options markets reflect uncertainty

The high level of uncertainty is particularly evident in the options markets. For June 2026, the expected price levels range from around 70,000 to 130,000 US dollars, and by the end of 2026 even from 50,000 to 250,000 US dollars, the analysis continues. As long as Bitcoin fails to establish itself sustainably above $100,000 to $105,000, Thorn continues to see increased short-term downside risk.

Maturation as an asset class

Bitcoin is increasingly becoming an established asset class. This trend is expected to continue as demand from institutional investors increases and non-US dollar hedging becomes increasingly important. Combined with loose monetary policy and the market’s need for such alternatives, Bitcoin could be similar over the next two years Gold be recognized as a hedge against currency devaluation, the analysis continues.

Long-term prospects remain positive

Despite possible sideways movements or temporary declines in 2026, Thorn remains optimistic in the long term. The expansion of institutional access, possible monetary policy easing and the search for alternatives to government-issued currencies could establish Bitcoin as a long-term hedge against currency devaluation. Against this background, Alex Thorn from Galaxy Digital predicts a possible Bitcoin price of up to $250,000 by the end of 2027.

Editorial team finanzen.net