Bitcoin Bulls Recalibrate: Galaxy Trims 2025 BTC Target to $120,000 Amid Cooling Market Momentum

Galaxy Digital just threw cold water on crypto's hottest price predictions—slashing their Bitcoin forecast as market temperatures drop.

The Reality Check

That $120,000 target for 2025 now stands as the new conservative benchmark. Galaxy's analysts see cooling momentum across derivatives and spot markets—forcing a strategic pullback from earlier, more aggressive projections.

Market Mechanics at Play

Institutional flows are slowing, retail interest is plateauing, and the leverage frenzy that characterized previous bull runs has noticeably tempered. The numbers don't lie—even if Wall Street's crypto desks wish they would.

Welcome to crypto's 'measured optimism' phase—where even the bulls are checking their rearview mirrors while traditional finance veterans smugly adjust their 'I told you so' spreadsheets.

Investors also rotated money into other assets. Gold, AI investments, and stablecoins attracted capital that might have otherwise gone to Bitcoin.

The flash crash on October 10 caused major damage to the bull trend. This event triggered about $20 billion in liquidations within 24 hours.

This liquidation event marked the largest in crypto history. Leveraged positions were wiped out as prices fell rapidly.

Market Panic and Price Recovery

Bitcoin fell below $100,000 for the first time in four months this week. The cryptocurrency dropped from its record high above $126,000.

Crypto markets saw $1.3 billion in liquidations on Tuesday. This wave of forced selling pushed bitcoin prices down further.

The price decline exceeded 20% from the all-time high. Some analysts consider a 20% drop as bear market territory.

Bitcoin fell below its 365-day moving average on Tuesday and Wednesday. This technical level typically acts as dynamic support.

Trader Lourenço VS noted that corrections between 20-25% are normal for this cycle. The current 21% correction falls within typical parameters.

Institutional Impact on Volatility

Galaxy believes Bitcoin can maintain support at $100,000. If this level holds, the bull market structure may remain intact.

Exchange-traded funds and financial institutions now drive passive investment flows. These flows have dampened Bitcoin’s price volatility.

Thorn remains optimistic about Bitcoin’s long-term fundamentals. However, he acknowledges that traditional cyclical market dynamics have been disrupted.

$BTC 1 more month of chop imo.

This is reminiscent of the last dump we had in February 2025 imo.

Chop city and then send later pic.twitter.com/F8qelegzFg

— Altcoin Sherpa (@AltcoinSherpa) November 6, 2025

Bitcoin recovered to $103,744 on Thursday. Traders bought the cryptocurrency at discounted prices.

Economic uncertainty limited the strength of the rebound. Cooling expectations for Federal Reserve rate cuts also weighed on the recovery.

World Economic Forum President Borge Brende warned of a potential crypto bubble on Wednesday. He spoke to reporters in Brazil about valuation concerns.

Bitcoin lost about 5% in October. This broke a seven-year streak of gains during that month.

Robinhood reported crypto trading revenue of $268 million for the third quarter. This represented a 300% increase compared to the previous year.

Broader crypto markets followed Bitcoin’s recovery on Thursday. Ether ROSE 3.7% to $3,450, while XRP gained 5.1% to $2.36.