According to BlockBeats news, on December 12, Sygnum Bank, an asset management company focused on cryptocurrencies, released a report indicating that a surge in institutional fund inflows could trigger a 'demand shock' for Bitcoin (BTC) in 2025, potentially leading to a spike in BTC prices.
Sygnum stated in its (2025 Crypto Market Outlook) report that institutional capital flows have already had a 'multiplier effect' on the spot price of BTC, with every $1 billion net inflow to exchange-traded funds (ETFs) pushing the price up by about 3-6%. This dynamic is expected to accelerate in 2025 as large institutional investors, including sovereign wealth funds, endowments, and pension funds, increase their Bitcoin allocations.
Sygnum adds that this trend will only expand to altcoins if the United States supports laws for cryptocurrency adoption. Among them, the proposed (21st Century Financial Innovation and Technology Act) (FIT21) and the (Stablecoin Payments Act) are particularly important for cryptocurrencies.
