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Standard Chartered anticipates that Bitcoin (BTC) may reach $200,000 by the conclusion of 2025, driven by institutional investments and expected regulatory changes that reinforce its status as a mainstream asset.
In its most recent report, the bank credited Bitcoin’s rise beyond $100,000 this year to unprecedented institutional inflows and outlined a clear trajectory for continued expansion.
Increasing interest
Geoffrey Kendrick, head of digital assets research at StanChart, pointed out that institutions acquired 683,000 BTC in 2024, with a notable portion — 245,000 BTC — purchased in the weeks following the US election, a time characterized by increased optimism regarding regulatory reform under the forthcoming Trump administration.
MicroStrategy alone was responsible for 213,000 BTC, significantly surpassing its annual goal, while US spot exchange-traded funds (ETFs) added 470,000 BTC to their holdings.
Kendrick remarked:
“MicroStrategy’s rate of accumulation has surpassed expectations, and its plan to raise $42 billion over three years suggests further substantial inflows in 2025.”
Kendrick expressed his expectation for regulatory changes in early 2025, including the repeal of SAB 121, the enactment of stablecoin legislation, and leadership transitions at the US Securities and Exchange Commission (SEC), as crucial for facilitating additional institutional engagement.
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These reforms are anticipated to allow retirement funds and pension accounts — representing a $40 trillion market — to allocate a portion of their assets to Bitcoin. The report indicated that even a 1% allocation could result in inflows of $400 billion, significantly impacting Bitcoin’s price.
Furthermore, the report emphasized the involvement of sovereign wealth funds, such as Norway’s NBIM, which indirectly holds 7,000 BTC through its investment in MicroStrategy. The report also proposed the idea of a US strategic Bitcoin reserve fund, a development that could encourage wider adoption by other global sovereign wealth funds.
Reduced market volatility
Standard Chartered observed that the introduction of Bitcoin ETF options in November has further diminished market volatility, a factor likely to draw more participants from traditional finance. The increasing attractiveness of Bitcoin as a portfolio asset is evident in metrics such as MicroStrategy’s market cap-to-Bitcoin holdings ratio, which has tripled this year, indicating heightened demand.
Moreover, the opportunity for corporate treasuries and global investors to enhance their Bitcoin exposure has grown with the success of companies like Japan’s Metaplanet and Germany’s Acurx Pharmaceuticals. Both organizations have made recent Bitcoin investments, while Microsoft’s board is scheduled to vote on a similar initiative this month.
Although challenges persist, including the pace of regulatory implementation and broader acceptance among conservative asset managers, Standard Chartered reaffirmed its belief in Bitcoin’s upward trajectory.
According to the bank:
“Bitcoin’s limited market capitalization, in relation to potential institutional demand, positions it uniquely for significant growth.”
The post StanChart updates Bitcoin price projection to $200k by 2025-end appeared first on CryptoSlate.
