Bitcoin's Position in the Investment Landscape
Alex Thorn, Head of Research at Galaxy Digital, asserts that investor attention will inevitably cycle back to Bitcoin, even as the cryptocurrency has seen its status as 2025's top trade diminish. Thorn communicated to CNBC on Friday that Bitcoin has a history of consistently recapturing the focus of investors over time.
At the beginning of the year, Bitcoin was a dominant topic in asset class discussions, particularly following Donald Trump's presidential election victory. The cryptocurrency garnered significant attention across global markets and various investment sectors before capital began to rotate to other areas.
Throughout the year, investors redirected their attention toward emerging opportunities in artificial intelligence, nuclear energy, quantum technology, and gold. Thorn explained that these competing investment avenues drew capital away from Bitcoin during 2025.
Galaxy Digital's Price Target and Market Maturation
Galaxy Digital has revised its year-end Bitcoin price target downwards to $120,000, a decrease from the previous $185,000. This adjustment represents a potential upside of 17% from the current trading level of $102,080. Thorn described Bitcoin as entering a "much more mature era," where the distribution of the cryptocurrency from long-term holders to new participants is contributing to market strengthening.
Comparative Analysis with Other Assets
Recent analysis from JPMorgan suggests that the increasing volatility of gold during its October rally to record highs has made the precious metal a riskier investment relative to Bitcoin. The Bitcoin-to-gold volatility ratio has reportedly fallen to 1.8, indicating that Bitcoin carries 1.8 times the risk associated with gold.
Reports from October 10th indicate that Bitcoin and Nvidia stock are now exhibiting a closer correlation than at any point over the past year. Some market observers have drawn parallels to the dot-com bubble of the late 1990s, suggesting potential correlation risks.
The Quantum Computing Debate and Bitcoin's Security
The ongoing threat posed by quantum computing continues to be a subject of division among cryptocurrency experts. Amit Mehra of Borderless Capital expressed the view that quantum computing is still several years away from posing a significant threat to Bitcoin's cryptographic security.
Conversely, Charles Edwards, associated with the quantitative digital asset fund Capriole, argues that the situation necessitates immediate action. Edwards contends that the cryptocurrency industry must implement protective solutions proactively before technological advancements create genuine vulnerabilities.
Bitcoin's Resilient Investor Attraction
Thorn reiterated his belief that attention consistently returns to Bitcoin, irrespective of temporary shifts in focus to other market sectors. He emphasized that the current phase of market maturation supports broader adoption through healthier patterns of ownership distribution.