Growing Institutional Interest May Cause Bitcoin ‘Demand Shocks’ In 2025
Crypto asset management company Sygnum predicts institutional investor-led ‘demand shocks’ might boost Bitcoin (BTC) prices in 2025. Alternatives may underperform owing to limited capital rotation from BTC to other cryptocurrencies.
Bitcoin Should Maintain Momentum Through 2025
In Crypto Market Outlook 2025, asset management Sygnum listed many variables that might boost BTC prices next year. The crypto bull market in 2025 will be driven by institutional capital inflows, according to the analysis.
The data shows a ‘multiplier effect’ from institutional inflows and Bitcoin's limited liquid supply. Each $1 billion of net inflows into spot BTC ETFs apparently raises prices by 3-6%.
According to the analysis, reflexivity boosts Bitcoin's price momentum by increasing demand. Institutional inflows, the multiplier effect, and Bitcoin's reflexivity will make 2025 crucial for the cryptocurrency.
After Donald Trump's November election triumph, the research stresses the need for pro-crypto regulation in the US. Crypto law is expected to be strengthened by a complete regulatory framework that might bring industry certainty.
2025: Bitcoin's Turning Point
The research expects BlackRock, Fidelity, and Morgan Stanley to increase their crypto holdings. Some portfolios enable 25% crypto investments, while most use 1-3%.
BTC may also benefit from central banks and local governments putting aside cash for BTC reserves. El Salvador and Bhutan are mining and hoarding BTC as part of their economic plan.
The research expects 2025 crypto ETF inflows to be ‘substantially higher’ than net inflows. SoSoValue reports $113.72 billion in US spot BTC ETF net assets as of December 11.
Despite its positive predictions, the research notes various dangers that might derail Bitcoin's upward trajectory. Inflation, geopolitical uncertainty, and Tether's stablecoin supremacy are examples. BTC is $100,940 at press time, up 0.9% in 24 hours.
#BTC #BTCReclaims101K #CPI4MonthsHigh #BTCNextDirection? $BTC
