Standard Chartered’s Global Head of Digital Assets Research Geoff Kendrick says that Bitcoin‘s (CRYPTO: BTC) value could surge to $200,000 by the end of 2025.
What Happened: A research note by Kendrick released on Thursday indicates that Bitcoin’s recent rally, surpassing the $100,000 mark, is primarily driven by institutional investors.
These investors are increasingly drawn towards spot ETFs, while MicroStrategy, a firm with a focus on Bitcoin development, has been rapidly acquiring the asset.
Kendrick projects that institutional flows will continue at or above the current pace until 2025. He also suggests that regulatory changes under President-elect Donald Trump could potentially amplify these flows.
"In 2025, we expect institutional flows to continue at or above the 2024 pace. Against this backdrop, we think our end-2025 Bitcoin price target around the $200,000 level is achievable," he said in the post.
Also Read: Bitcoin’s Bull Run: Betting On A $125K Finish To 2024
MicroStrategy’s aggressive Bitcoin acquisition strategy, involving a $42 billion plan to purchase Bitcoin over the next three years using equity and debt, is progressing ahead of schedule, according to Kendrick.
According to a report by Decrypt, the company’s Bitcoin holdings, currently valued over $40.5 billion, have increased by 150,000 Bitcoin since Election Day, marking a surge of over $15 billion.
Kendrick also predicts a rise in Bitcoin allocations by pension funds to spot Bitcoin ETFs in 2025. If U.S. retirement funds or global sovereign wealth funds also increase their allocations, Standard Chartered’s bullish stance on Bitcoin’s price could intensify even further.
Despite a recent dip, Bitcoin’s price remains above the $100,000 mark, fueling optimism among some analysts about the cryptocurrency’s short-term prospects.
Why It Matters: The predicted surge in Bitcoin’s value is significant as it indicates growing confidence in the cryptocurrency’s potential for high returns.
The increased interest from institutional investors, coupled with regulatory changes, could potentially drive Bitcoin’s value even higher. MicroStrategy’s aggressive acquisition strategy further underscores the growing acceptance and adoption of Bitcoin as a viable investment.
The potential increase in Bitcoin allocations by pension funds and global sovereign wealth funds could further solidify Bitcoin’s position in the investment landscape.
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