Bitcoin Price Prediction by Standard Chartered
Standard Chartered believes that Bitcoin (BTC) could reach $200,000 by the end of 2025 as institutional investments and anticipated regulatory shifts solidify its position as a mainstream asset.
Factors Driving Bitcoin’s Growth
In its latest report, the bank attributed Bitcoin’s surge past $100,000 this year to unprecedented institutional inflows and projected a clear path for further growth.
Growing interest in Bitcoin
StanChart’s head of digital assets research, Geoffrey Kendrick, highlighted that institutions acquired 683,000 BTC in 2024, with a significant amount — 245,000 BTC — purchased in the weeks following the US election, a period marked by heightened optimism about regulatory reform under the incoming Trump administration.
- MicroStrategy alone accounted for 213,000 BTC, significantly exceeding its annual target.
- US spot exchange-traded funds (ETFs) added 470,000 BTC to their portfolios.
Anticipated Regulatory Changes
Kendrick said he anticipates regulatory changes in early 2025, including a repeal of SAB 121, the passage of stablecoin legislation, and leadership changes at the US Securities and Exchange Commission (SEC), as pivotal for unlocking additional institutional participation.
- Reforms expected to enable retirement funds and pension accounts to allocate a fraction of their assets to Bitcoin.
- Even a 1% allocation could drive inflows worth $400 billion, with transformative effects on Bitcoin’s price.
Role of Sovereign Wealth Funds
The report highlighted the role of sovereign wealth funds, such as Norway’s NBIM, which indirectly holds 7,000 BTC through its investment in MicroStrategy.
- Possibility of a US strategic Bitcoin reserve fund could catalyze broader adoption by other global sovereign wealth funds.
Impact of Lower Market Volatility
Standard Chartered noted that the launch of Bitcoin ETF options in November has further reduced market volatility, likely to attract more traditional finance players.
Increasing Bitcoin Appeal
The growing appeal of Bitcoin as a portfolio asset is reflected in metrics such as MicroStrategy’s market cap-to-Bitcoin holdings ratio, which has tripled this year, signaling excess demand.
- Corporate treasuries and global investors have increased their Bitcoin exposure.
- Success experienced by companies like Japan’s Metaplanet and Germany’s Acurx Pharmaceuticals.
Challenges Ahead
While challenges remain, including the speed of regulatory implementation and broader adoption among conservative asset managers, Standard Chartered reaffirmed its confidence in Bitcoin’s upward trajectory.
- Bitcoin’s limited market capitalization, relative to potential institutional demand, positions it uniquely for outsized growth.
Bitcoin Market Data
At the time of press 7:57 pm UTC on Dec. 6, 2024, Bitcoin is ranked #1 by market cap and the price is up 2.36% over the past 24 hours. Bitcoin has a market capitalization of $2.02 trillion with a 24-hour trading volume of $116.29 billion.
Crypto Market Summary
At the time of press 7:57 pm UTC on Dec. 6, 2024, the total crypto market is valued at $3.7 trillion with a 24-hour volume of $299.02 billion. Bitcoin dominance is currently at 54.46%.
