On December 6, it was reported that after historically breaking the $100,000 milestone, the price of bitcoin plummeted significantly. But this was not enough to dampen the bullish enthusiasm of cryptocurrency bulls.
Standard Chartered recently stated that bitcoin's breakthrough of $100,000 is just the starting point of its broader rebound, with the cryptocurrency's price expected to double again next year, as institutional funds are likely to flood in.
Geoff Kendrick, the global head of digital asset research at Standard Chartered, reaffirmed the expectation that bitcoin's price will rise to $200,000 by the end of 2025. Previously, he accurately predicted that bitcoin would rise to six figures.
“If U.S. retirement funds, global sovereign wealth funds, or potential U.S. strategic reserve funds accept bitcoin more quickly, we will become more optimistic,” Kendrick wrote in a report published on Thursday.
Kendrick originally predicted in 2023 that bitcoin would rise to $100,000, primarily based on the expectation that regulatory changes and decreased volatility would facilitate institutional investor inflows.
As MicroStrategy—the publicly listed company with the most bitcoins—and demand for bitcoin exchange-traded funds (ETFs) increase, this trend is expected to continue until 2025.
Kendrick expects that the incoming Trump administration will stimulate rising institutional demand. Trump promised during his campaign to implement crypto-friendly policies and proposed the idea of establishing a national bitcoin reserve, which has excited the crypto industry.
Additionally, new options trading for bitcoin ETFs should accelerate the 'long-only' demand from pension funds and retirement accounts.
Kendrick noted that, so far, hedge funds and investment advisors dominate the reported ETF holdings, while pension funds account for only 1%.
“It is worth noting that the total of U.S. retirement accounts/pension funds is $40 trillion. Even 1% of that ($400 billion) would represent a massive inflow of funds, potentially driving the price of bitcoin significantly higher,” he wrote.
The report stated that MicroStrategy's buying frenzy has also fueled the rise of bitcoin, which is expected to accelerate next year. This business software company has purchased 386,700 bitcoins and plans to raise $42 billion over the next three years to buy more bitcoins.
“MicroStrategy's success has spawned many imitators; the largest of which is Metaplanet, listed in Japan, which currently holds over 1,000 bitcoins. Companies are also taking action, with Germany-based Acurx Pharmaceuticals recently announcing a plan to purchase $1 million worth of bitcoin,” Kendrick said. “Although this inflow of funds is small so far, it may increase over time.”
Since Trump was elected President of the United States, the price of bitcoin has risen by more than 40%. On Thursday, fueled by the favorable news of Trump's nominee for the SEC, who is a supporter of the cryptocurrency sector, bitcoin surged past the $100,000 mark, peaking at $103,713. Later that day, bitcoin began to reverse its gains, significantly falling from its historical high, at one point dropping below $94,000, due to profit-taking by investors. According to Coindesk, bitcoin is currently trading around $97,000.
