Standard Chartered forecasts that the price of Bitcoin (BTC) could reach $200,000 by the end of 2025, thanks to the increase in investments from institutions and regulatory changes, which are expected to strengthen Bitcoin's position as a mainstream asset.
In a recent report, the bank believes that the strong growth of Bitcoin, exceeding the $100,000 mark this year, is mainly due to the record-breaking institutional investment inflows, and they predict a clear path for sustainable growth in the future.
Geoffrey Kendrick, head of the digital assets research team at Standard Chartered, emphasized that institutions have purchased a total of 683,000 BTC in 2024, with 245,000 BTC acquired after the US Presidential election. This period marks an increase in expectations for regulatory reforms under the upcoming Trump administration.
"MicroStrategy's accumulation rate has far exceeded expectations, and its commitment to raise $42 billion over the next three years suggests that the inflow of capital into Bitcoin will continue to be strong in 2025."
He also predicts that the anticipated regulatory changes in early 2025, such as the repeal of SAB 121, the passage of stablecoin legislation, and leadership changes at the US Securities and Exchange Commission (SEC), will play a crucial role in driving greater institutional participation.
Kendrick emphasized that these reforms could open up opportunities for pension funds and retirement accounts - representing a $40 trillion market - to allocate assets to Bitcoin. The report suggests that even a 1% allocation from this group could create a $400 billion inflow, significantly impacting the value of Bitcoin.
The report also mentions the involvement of sovereign wealth funds, such as Norway's NBIM, which currently indirectly holds 7,000 BTC through its investment in MicroStrategy. Additionally, the potential establishment of a strategic Bitcoin reserve in the US could drive more widespread adoption by global sovereign wealth funds.
Standard Chartered also believes that the launch of Bitcoin ETF options in November has contributed to reducing market volatility, which could attract more traditional financial companies to participate. The potential of Bitcoin as an investment asset has been clearly demonstrated through metrics such as the market capitalization-to-MicroStrategy-held-BTC ratio, which has tripled this year, indicating that demand is outpacing supply.
Furthermore, the success of companies like Metaplanet in Japan and Acurx Pharmaceuticals in Germany in making recent Bitcoin investments suggests significant potential for increased exposure to Bitcoin from corporate treasuries and global investors. Microsoft is also expected to vote on a similar move this month.
While there are still challenges, including the pace of regulatory implementation and the level of acceptance from conservative asset managers, Standard Chartered remains confident in Bitcoin's strong growth trajectory. The bank states:
"With Bitcoin's limited market capitalization relative to the potential demand from institutions, it is uniquely positioned to witness extraordinary growth in the future."
Disclaimer: This article is for informational purposes only and not investment advice. Investors should do their own research before making decisions. We are not responsible for your investment decisions.
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