- Standard Chartered predicts Bitcoin could reach $200,000 by end of 2025.
- MicroStrategy has accumulated 402,100 Bitcoin worth over $40.5 billion since Election Day.
- Institutional investors and spot ETF flows remain primary price drivers.
- Bitcoin experienced volatility after crossing $100,000, dropping to $93,000 before recovering.
- Analysts expect increased pension fund and sovereign wealth fund participation in 2025.
Standard Chartered Bank projects Bitcoin’s price could reach $200,000 by the end of 2025, driven by sustained institutional investment and potential regulatory changes under the next administration.
The forecast comes as the cryptocurrency maintains its position above $100,000 after a historic breakthrough.
Institutional Momentum
Standard Chartered’s Global Head of Digital Assets Research Geoff Kendrick emphasized that institutional investors, particularly through spot ETFs, continue to fuel Bitcoin’s price appreciation.
“In 2025, we expect institutional flows to continue at or above the 2024 pace,” Kendrick wrote in a Thursday research note.
MicroStrategy, a prominent Bitcoin development firm, has exceeded expectations in its Bitcoin acquisition strategy. The company has added 150,000 Bitcoin to its holdings since Election Day, bringing its total to 402,100 Bitcoin, valued at over $40.5 billion. This aggressive accumulation is part of the company’s $42 billion purchase plan, utilizing both equity and debt financing.
Market Response and Price Action
The cryptocurrency’s price movement has shown significant volatility:
- Peak: $103,600 (Thursday)
- Low: $93,000 (Flash crash)
- Recovery: $102,000 (Friday afternoon)
Matt Mena, crypto research strategist at 21Shares, identified the $100,000 mark as a significant psychological threshold that could attract new investors.
However, EToro investment analyst Brent Kenwell suggested profit-taking might occur, noting Bitcoin’s 40% gain since the election.
Coinbase CEO Brian Armstrong advocated for government Bitcoin reserves, suggesting that “every government” should consider establishing strategic Bitcoin holdings. While Standard Chartered considers a U.S. strategic Bitcoin reserve a “low-probability” event, such development could substantially impact prices.
FXTM Senior Market Analyst Lukman Otunuga provided technical analysis, stating, “A strong weekly close above $100,000 may signal further upside. However, should prices slip below this key level—bears could target $95,000.”
The outlook for 2025 hinges on increased participation from pension funds and potential allocation from sovereign wealth funds, which could drive prices beyond current projections according to Standard Chartered’s analysis.
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