What happened?
Galaxy Digital cut its 2025 Bitcoin price target from $185,000 to $120,000, citing rising leveraged liquidations, large whale sell-offs and tighter market liquidity. The firm still says it’s long-term bullish because institutional inflows and ETF growth should keep demand intact. At the same time, Japan’s Metaplanet tapped a $100M Bitcoin-backed loan to buy more BTC and Adam Back’s Swiss startup “Future” raised $34.5M to build custody and treasury services, while BTC trades around $103,000 with signs of technical consolidation.
Who does this affect?
Short-term traders and leveraged positions are most at risk as downgrades and liquidations can spark volatile moves. Institutional investors, corporate treasuries and custody providers care because forecasts, loans and new infrastructure shape allocation decisions and product demand. Retail holders, miners and exchanges also feel the impact since whale behavior and liquidity shifts directly influence price swings and trading conditions.
Why does this matter?
A lower target from a major research team can cool speculative froth and make traders more cautious, which may pressure near-term upside even as it reduces tail risk. Meanwhile, Metaplanet’s conservative leverage and new custody infrastructure signal steady institutional demand that could underpin prices once liquidity stabilizes. Technical consolidation around $100k–$104k suggests a choppy period ahead that could set the stage for a more sustainable rally if institutions keep buying and leverage continues to unwind.