$BTC ‘Demand shock’ in 2025 will drive Bitcoin prices up: Sygnum. According to a report on December 12 from Sygnum Bank, a crypto-focused asset management company, the influx of capital from institutions into the space could cause a 'demand shock' for Bitcoin (BTC) in 2025 and potentially lead to a surge in the price of this asset.

The capital flow from institutional investors has created a 'multiplier effect' on the spot price of BTC, with every 1 billion USD of net inflow into spot ETFs driving price volatility of about 3-6%, Sygnum noted in its 2025 crypto market outlook report. Sygnum expects this momentum to accelerate in 2025 as large institutional investors, including national investment funds, endowment funds, and pension funds, increase their Bitcoin allocations.

“With improved transparency in U.S. regulations and the potential for Bitcoin to be recognized as a central bank reserve asset, 2025 could see strong participation from institutional investors in the cryptocurrency asset,” said Martin Burgherr, Sygnum's client director, in a statement.

“Our analysis shows that even relatively modest allocations from this segment could help transform the cryptocurrency asset ecosystem.”