Standard Chartered predicts that Bitcoin (BTC), as a result of institutional investment and regulatory changes, could hit $200,000 before the end 2025.
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
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 added 213,000 BTC alone to its portfolio, exceeding by a large margin the annual target. US exchange traded funds (ETFs), which are based in New York, also added an additional 470,000 BTC.
Kendrick, according to
“MicroStrategy’s pace of accumulation has exceeded expectations, and its commitment to raising $42 billion over three years indicates further significant inflows in 2025.”
Kendrick believes that regulatory changes will be made in the early years of 2025. These include the repeal of SAB 121 and the adoption of stablecoins. Kendrick also expects leadership changes to occur at the US Securities and Exchange Commission.
These reforms are expected to enable retirement funds and pension accounts — representing a $40 trillion market — to allocate a fraction of their assets to Bitcoin. The report noted that even a 1% allocation could drive inflows worth $400 billion, with transformative effects on Bitcoin’s price.
Additionally, 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. Report also suggested the creation of a US Strategic Bitcoin Reserve Fund, which could be a catalyst for other sovereign wealth funds to adopt Bitcoin.
Lower market volatility
Standard Chartered said that Bitcoin ETFs launched in November have further reduced volatility on the market, a fact likely to appeal more players from traditional finance. 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.
Additionally, the potential for corporate treasuries and global investors to deepen their Bitcoin exposure has increased with the success experienced by companies like Japan’s Metaplanet and Germany’s Acurx Pharmaceuticals. Both firms have made recent Bitcoin investments, while Microsoft’s board is set to vote on a similar move this month.
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.
The lender’s perspective:
“Bitcoin’s limited market capitalization, relative to potential institutional demand, positions it uniquely for outsized growth.”
Bitcoin Market Data
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The time is 7:57 p.m. UTC, December 6, 2024.
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