Bitcoin to Outperform in 2025, Predicts Galaxy Digital; VALR CEO Sees Institutional Adoption in Emerging Markets
Galaxy Digital, a leading cryptocurrency investment firm, predicts Bitcoin price will outperform other asset classes in 2025, potentially reaching 20% of Gold's market capitalisation. Meanwhile, Farzam Ehsani, CEO of VALR, believes emerging market institutions face strong incentives to adopt Bitcoin as a strategic reserve asset due to currency depreciation.
Farzam Ehsani, CEO of VALR, recommends companies seeking to hold cryptocurrencies in their reserves should focus solely on Bitcoin. He cites its long-term growth potential and prospects for further appreciation. However, Bitcoin's volatility and regulatory uncertainty pose significant hurdles for institutional adoption. Businesses must navigate complex accounting and risk management frameworks to embrace this digital asset.
Ehsani points to the decision of South African investment firm AltVest Capital Ltd., now rebranding as Africa Bitcoin Corporation, as a sign of this trend. The company plans to adopt Bitcoin as a strategic reserve asset, serving as an example for other African institutions. Ehsani sees this move as part of a broader strategy driven by currency depreciation affecting many companies across the continent.
While Bitcoin's volatility and regulatory uncertainty present challenges, Galaxy Digital's prediction and VALR's CEO's endorsement highlight its potential as a strategic reserve asset. Ehsani's observation of AltVest's adoption suggests a growing trend in Africa, driven by currency depreciation and the need for diversification.
